INDIANAPOLIS, April 2,
2018 /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 revised results for the quarter and year
ended December 31, 2017, as follows:
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Dollars in
millions, except per unit data)
|
Net loss
|
$
|
(83.6)
|
|
|
$
|
(79.6)
|
|
|
$
|
(103.8)
|
|
|
$
|
(328.6)
|
Limited partners'
interest basic and diluted net loss per unit
|
$
|
(1.06)
|
|
|
$
|
(1.01)
|
|
|
$
|
(1.31)
|
|
|
$
|
(4.18)
|
Adjusted
EBITDA
|
$
|
41.2
|
|
|
$
|
27.7
|
|
|
$
|
317.2
|
|
|
$
|
158.2
|
The Partnership's $83.6 million
Net loss for the fourth quarter 2017 included the impact of: (1) a
$173.4 million net gain on sale from
the divestitures of both the Superior,
Wisconsin refinery ("Superior Refinery") and Anchor Drilling
Fluids USA, LLC; (2) $206.9 million non-cash impairment charges
primarily related to the revaluation of the Partnership's property,
plant and equipment at several facilities; and (3) a $6.1 million adjustment related to allowances for
bad debt reserves. Without these adjustments, Net loss for the
fourth quarter 2017 would have been $44.0
million or $(0.56) per
unit.
The Partnership's $41.2 million
Adjusted EBITDA for the fourth quarter 2017 included: (1) a
$9.6 million favorable net impact
related to lower of cost or market ("LCM") inventory adjustments
and last-in, first-out ("LIFO") inventory layers; (2) a
$12.9 million net expense related to
enterprise resource planning ("ERP") system expenses and realized
hedging losses; and (3) a $6.1
million adjustment related to allowances for bad debt
reserves. Without these impacts, Adjusted EBITDA for the fourth
quarter 2017 would have been $50.6
million.
Investors are advised to review the annual results on Form 10-K
filed today for further details of the results, as well as the
investor relations section of our website where we have provided an
updated investor presentation for the quarter. For detailed
information on Adjusted EBITDA and a reconciliation of Adjusted
EBITDA to the nearest comparable GAAP measure for the periods
presented above, please see the sections of this release entitled
"Non-GAAP Financial Measures" and "Reconciliation of Net Loss To
EBITDA, Adjusted EBITDA and Distributable Cash Flow."
Management Commentary
"I am pleased to report that we have successfully turned the
corner. We have delivered five consecutive quarters of improved
earnings results on a year-over-year basis. We called our
high-interest senior secured notes last month. We recently extended
our corporate revolver to a new five-year term, which is a great
sign that our lenders have recognized the positive steps we have
taken to improve the Partnership's operational and financial
performance," said Tim Go, Chief Executive Officer of Calumet.
"While we are disappointed the implementation of our enterprise
planning system has been more challenging than envisioned and has
caused delays in the filings of our third and fourth quarters
results, our momentum and forward outlook remains intact. At this
time last year, I stated that 2017 was going to be our year to
execute on our strategic efforts. Our management team and all of
our employees have delivered on that promise. Our self-help program
continued to structurally improve our base business and exceed the
run-rate of our initial projections, and we made significant
strides towards our long-term strategic goals. Our liquidity
continued to strengthen, and our leverage has declined
significantly from roughly 13 times Adjusted EBITDA last year to
under five times today. We also continued to expand our high-value
specialty products business through new product innovation,
production capacity expansions, and by growing our branded products
business."
Go continued, "On the strategic front, 2017 was a very important
year for Calumet, as we completed the divestitures of two
significant non-core assets during the period: our Superior
Refinery and our oilfield services business. These transactions
will reduce volatility in our business and allow Calumet to focus
on our core specialties business. Further, the proceeds from these
transactions will allow us to retire our high-yield senior secured
notes, with an expected closing date of April 9th."
Go concluded, "As we look forward, we need to carry the momentum
we have generated into 2018 and beyond. We remain committed to
driving further self-help across our portfolio and have set a 2018
target to realize an additional $40
to $50 million in Adjusted EBITDA.
This will be driven by new product growth, margin enhancements and
cost savings, some of which we have identified through our newly
implemented ERP system. All of these initiatives will be key to our
efforts to further reduce balance sheet leverage and enhance our
profitability as we work to transform the business and execute our
vision 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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Dollars in
millions, except per barrel data)
|
Specialty products
segment gross profit
|
$
|
64.2
|
|
|
$
|
59.3
|
|
|
$
|
319.2
|
|
|
$
|
338.1
|
|
Specialty products
segment Adjusted EBITDA
|
$
|
30.8
|
|
|
$
|
28.0
|
|
|
$
|
186.5
|
|
|
$
|
188.9
|
|
Specialty products
segment gross profit per barrel
|
$
|
30.07
|
|
|
$
|
25.30
|
|
|
$
|
33.93
|
|
|
$
|
34.57
|
|
Specialty products
segment Adjusted EBITDA Margin
|
9.8
|
%
|
|
9.2
|
%
|
|
14.3
|
%
|
|
15.1
|
%
|
During the fourth quarter 2017, total specialty products segment
gross profit increased 8.3% compared to the year-ago period, driven
by healthier market conditions, offset somewhat by rising crude
feedstock costs. Adjusted EBITDA for the fourth quarter 2017 was
$30.8 million, which was a 10.0%
improvement compared to the year-ago period, despite the lower
sales volumes associated with the lubes turnaround at Shreveport.
Specialty products segment gross profit per barrel in the period
was $30.07, which grew 18.9% compared
to last year's comparable quarter despite a nearly nine dollars per barrel increase in the cost of
West Texas Intermediate ("WTI") during the fourth quarter. The
segment's Adjusted EBITDA Margin for the fourth quarter was 9.8%
versus 9.2% for the prior year comparable period, despite some
additional charges associated with the ERP implementation. The
segment also benefited from a $2.5
million favorable LCM inventory adjustment, which was
partially offset by a $2.1 million
LIFO inventory liquidation loss.
During fiscal year 2017, total specialty products sales volumes
decreased 3.8% year-over-year, driven primarily by supply-chain
disruptions that took place in the third quarter and the lubes
turnaround at Shreveport in the fourth quarter. Specialty products
segment Adjusted EBITDA decreased slightly due to consistently
rising feedstock costs throughout 2017 and decreased sales volumes,
partially offset by record volume and profit performance in the
higher-margin packaged and synthetic specialty products and record
throughput at the Cotton Valley refinery. Specialty products
segment gross profit per barrel during fiscal year 2017 of
$33.93 was down slightly compared to
2016 gross profit per barrel of $34.57, primarily due to the increase in the
price of crude. On an annual basis, the specialty products
segment's Adjusted EBITDA Margin was 14.3% in 2017, compared to
15.1% in 2016, which was due to the higher price of crude and the
additional charges associated with the ERP implementation.
Specialty products segment performance for 2017 was also impacted
by a $10.9 million favorable LCM
inventory adjustment and a $3.0
million LIFO inventory liquidation loss.
Fuel Products Segment | Results Summary
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Dollars in millions, except per barrel
data)
|
Fuel products segment
gross profit
|
$
|
33.1
|
|
|
$
|
13.2
|
|
|
$
|
179.0
|
|
|
$
|
48.2
|
Fuel products segment
Adjusted EBITDA
|
$
|
10.7
|
|
|
$
|
3.2
|
|
|
$
|
127.8
|
|
|
$
|
(10.1)
|
Fuel products segment
gross profit per barrel (excluding hedging activities)
|
$
|
4.07
|
|
|
$
|
1.19
|
|
|
$
|
4.61
|
|
|
$
|
0.96
|
During the fourth quarter 2017, improved fuel products segment
gross profit performance was driven primarily by a 41.3%
year-over-year increase in the benchmark Gulf Coast 2/1/1 crack
spread, better product mix, and improved distribution channels.
Fuel products segment sales volumes decreased by 23.2% primarily as
a result of the sale of the Partnership's Superior Refinery during
the fourth quarter. Quarterly Adjusted EBITDA and gross profit per
barrel materially increased relative to the year-ago period, driven
by a year-over-year increase in benchmark refined product margins
and improved local rack differentials, offset somewhat by lower
volumes and the additional charges associated with the ERP
implementation. Fuel products segment performance for the fourth
quarter 2017 was also impacted by a favorable LCM inventory
adjustment of $11.6 million and a
LIFO inventory liquidation loss of $0.8
million.
Gross profit for the fiscal year increased by nearly 300% to
$179.0 million, as average refining
margins rebounded meaningfully from the prior year levels, and
initiatives to improve fuels profitability at the Shreveport
refinery led to better capture and record premium gasoline sales.
Fuel products segment results for fiscal year 2017 were positively
impacted by a 36.0% average year-over-year improvement in the
benchmark Gulf Coast 2/1/1 crack spread, lower RFS compliance costs
and record production and record Canadian crude runs at the Great
Falls refinery, offset somewhat by the additional charges
associated with the ERP implementation. For fiscal year 2017, total
fuel products sales volumes were down slightly year-over-year.
Also, the segment was impacted by a favorable LCM inventory
adjustment of $19.7 million as well
as a LIFO inventory liquidation loss of $0.7
million during fiscal year 2017.
Discontinued Operations Oilfield Services| Results
Summary
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Dollars in
millions, except per barrel data)
|
Discontinued operations
gross profit
|
$
|
10.0
|
|
|
$
|
8.0
|
|
|
$
|
60.5
|
|
|
$
|
22.0
|
Discontinued operations
Adjusted EBITDA
|
$
|
(0.3)
|
|
|
$
|
(3.5)
|
|
|
$
|
2.9
|
|
|
$
|
(20.6)
|
U.S. land-based rig counts continued to improve relative to 2016
levels, experiencing a 41.2% increase across 2017. The rise in
land-based rig count caused quarterly gross profit to increase to
$10.0 million, compared to
$8.0 million in the fourth quarter
2016, despite only retaining the asset for a portion of the
quarter. Adjusted EBITDA of ($0.3)
million improved relative to the $3.5
million loss experienced in the prior year period, despite
the negative impacts of a $1.6
million unfavorable LCM inventory adjustment, that outpaced
the LCM adjustment from the prior-year period. For the full-year,
segment gross profit increased 175.0% to $60.5 million, and annual Adjusted EBITDA
improved markedly to $2.9 million
compared to the $20.6 million loss
exhibited in the year prior. Improved results were driven by
increased drilling activity, and the continued benefits of
cost-containment efforts by the business segment. Calumet sold the
oilfield services segment on November 21,
2017 and thus results from this segment are now included in
discontinued operations.
Partnership Liquidity
As of December 31, 2017, the Partnership had availability
under its revolving credit facility of approximately $252.0 million, based on a borrowing base of
approximately $319.0 million,
$67.3 million in outstanding standby
letters of credit and $0.2 million in
outstanding borrowings. In addition, the Partnership had
$514.3 million of cash on hand
(including $350.0 million of
restricted cash held for the purpose of redeeming the senior
secured notes) as of December 31, 2017. 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.
2018 Outlook
- For fiscal 2018, total capital spending is expected to be
between $80 million and $90 million. Included in the forecast is
maintenance capital, expected turnaround activity at the Great
Falls and Shreveport refineries and smaller growth capital
projects.
- The Partnership remains on schedule to achieve the high end of
its $150 million to $200 million in Adjusted EBITDA operations
excellence initiative objectives by the end of 2018, with a
projected $40 million to $50 million expected to be realized during fiscal
year 2018. 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.
First Quarter 2018 Timing Expectations
West Griffin, Executive Vice President & Chief Financial
Officer of Calumet, concluded, "In regards to our first quarter
filing expectations, we plan to issue our earnings release
concurrent with the filing of the fiscal first quarter 10-Q. Our
first priority is the integrity of our numbers; secondarily we will
prioritize the timely reporting of our results."
2018 Renewable Fuel Standard ("RFS") Compliance Impact
Forecast
The Partnership records its outstanding Renewable Identification
Numbers ("RINs") obligation as a balance sheet liability. This
liability is marked-to-market on a quarterly basis to reflect the
market price of RINs on the last day of each quarter. The
Partnership expects its gross estimated annual RINs obligation,
which includes RINs that are required to be secured through either
blending or through the purchase of RINs in the open market, will
be up to 85 million RINs for the full-year 2018, excluding the
potential for any hardship waivers that may or may not be granted
by the U.S. Environmental Protection Agency ("EPA") to any of the
Partnership's fuel refineries at a later time. Calumet expects to
be able to satisfy a portion of its 2018 gross RINs obligation
through internal blending efforts.
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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
bpd)
|
|
(In
bpd)
|
Total sales volume
(1)
|
111,522
|
|
|
140,521
|
|
|
132,082
|
|
|
140,180
|
|
Total feedstock runs
(2)
|
108,415
|
|
|
132,271
|
|
|
128,624
|
|
|
134,163
|
|
Facility production:
(3)
|
|
|
|
|
|
|
|
Specialty
products:
|
|
|
|
|
|
|
|
Lubricating
oils
|
13,155
|
|
|
15,373
|
|
|
14,606
|
|
|
14,697
|
|
Solvents
|
7,589
|
|
|
6,901
|
|
|
7,761
|
|
|
7,427
|
|
Waxes
|
1,381
|
|
|
1,728
|
|
|
1,423
|
|
|
1,571
|
|
Packaged and
synthetic specialty products (4)
|
1,720
|
|
|
1,816
|
|
|
2,206
|
|
|
1,777
|
|
Other
|
1,177
|
|
|
1,835
|
|
|
1,811
|
|
|
1,850
|
|
Total
|
25,022
|
|
|
27,653
|
|
|
27,807
|
|
|
27,322
|
|
|
|
|
|
|
|
|
|
Fuel
products:
|
|
|
|
|
|
|
|
Gasoline
|
29,461
|
|
|
39,719
|
|
|
35,713
|
|
|
37,713
|
|
Diesel
|
28,985
|
|
|
33,670
|
|
|
33,277
|
|
|
34,808
|
|
Jet fuel
|
4,054
|
|
|
5,806
|
|
|
5,368
|
|
|
5,306
|
|
Asphalt, heavy fuel
oils and other
|
22,550
|
|
|
26,838
|
|
|
29,396
|
|
|
29,780
|
|
Total
|
85,050
|
|
|
106,033
|
|
|
103,754
|
|
|
107,607
|
|
Total facility
production (3)
|
110,072
|
|
|
133,686
|
|
|
131,561
|
|
|
134,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 branded and packaged specialty 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, 2017 and 2016:
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
millions)
|
|
(In
millions)
|
Derivative gain
reflected in sales
|
$
|
—
|
|
|
$
|
14.1
|
|
|
$
|
—
|
|
|
$
|
59.7
|
Derivative loss
reflected in cost of sales
|
—
|
|
|
(16.9)
|
|
|
—
|
|
|
(53.3)
|
Derivative gain
(loss) reflected in gross profit
|
$
|
—
|
|
|
$
|
(2.8)
|
|
|
$
|
—
|
|
|
$
|
6.4
|
|
|
|
|
|
|
|
|
Realized loss on
derivative instruments
|
(6.0)
|
|
|
(3.9)
|
|
|
(13.2)
|
|
|
$
|
(24.0)
|
Unrealized gain
(loss) on derivative instruments
|
1.4
|
|
|
(3.6)
|
|
|
3.6
|
|
|
19.9
|
Total derivative gain
(loss) reflected in the consolidated
statements of operations
|
$
|
(4.6)
|
|
|
$
|
(10.3)
|
|
|
$
|
(9.6)
|
|
|
$
|
2.3
|
Total loss on
commodity derivative settlements
|
$
|
(6.0)
|
|
|
$
|
(3.9)
|
|
|
$
|
(13.2)
|
|
|
$
|
(24.0)
|
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
projected cost reduction initiatives and margin enhancing measures
to reduce balance sheet leverage and increase cash flow, (iii) our
access to capital to meet our financial commitments, debt service
obligations, contingencies and anticipated capital expenditures,
(iv) estimated capital expenditures and (v) our expectation
regarding the timing of the issuance of our earnings release and
Form 10-Q. 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 RFS, 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
We include in this press release the non-GAAP financial measures
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted
EBITDA Margin. We provide reconciliations of EBITDA, Adjusted
EBITDA and Distributable Cash Flow to Net loss, our most directly
comparable financial performance measure. We also provide a
reconciliation of Distributable Cash Flow to Net cash provided by
(used in) operating activities, our most directly comparable
liquidity measure. Both Net loss and Net cash provided by (used in)
operating activities are calculated and presented in accordance
with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted
EBITDA Margin 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; and
- the viability of acquisitions and capital expenditure projects
and the overall rates of return on alternative investment
opportunities.
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.
We define EBITDA for any period as net income (loss) plus
interest expense (including debt issuance costs), income taxes and
depreciation and amortization.
We define Adjusted EBITDA for any period as: (1) net income
(loss) plus (2)(a) interest expense (including debt issuance
and extinguishment costs); (b) income taxes;
(c) depreciation and amortization; (d) impairment;
(e) unrealized losses from mark to market accounting for
hedging activities; (f) realized gains under derivative
instruments excluded from the determination of net income (loss);
(g) 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); (h) debt
refinancing fees, premiums and penalties, (i) any net loss realized
in connection with an asset sale that was deducted in computing net
income (loss) and (j) all extraordinary, unusual or
non-recurring items of gain or loss, or revenue or expense; minus
(3)(a) unrealized gains from mark to market accounting for
hedging activities; (b) realized losses under derivative
instruments excluded from the determination of net income and
(c) other non-recurring expenses and unrealized items that
reduced net income (loss) for a prior period, but represent a cash
item in the current period.
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).
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by
sales.
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"), our 7.75% senior notes due
April 15, 2023 (the "2023 Notes"),
that were issued in March 2015 and
our 11.50% senior secured notes due January
15, 2021 (the "2021 Secured Notes"), that were issued in
April 2016. We are required to report
Consolidated Cash Flow to the holders of our 2021 Notes, 2022
Notes, 2023 Notes and 2021 Secured 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 2016 Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, for
additional details regarding the covenants governing our debt
instruments.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not
be considered alternatives to Net loss, Operating income (loss),
Net cash provided by (used in) operating activities or any other
measure of financial performance presented in accordance with GAAP.
In evaluating our performance as measured by EBITDA, Adjusted
EBITDA and Distributable Cash Flow, management recognizes and
considers the limitations of these measurements. EBITDA and
Adjusted EBITDA do not reflect our obligations for the payment of
income taxes, interest expense or other obligations such as capital
expenditures. Accordingly, EBITDA, Adjusted EBITDA and
Distributable Cash Flow are only three of several measurements that
management utilizes. Moreover, our EBITDA, Adjusted EBITDA and
Distributable Cash Flow may not be comparable to similarly titled
measures of another company because all companies may not calculate
EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same
manner. The following tables present a reconciliation of EBITDA,
Adjusted EBITDA and Distributable Cash Flow to Net loss, our most
directly comparable GAAP financial performance measure, and
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.
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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
|
|
|
Sales
|
$
|
883.8
|
|
|
$
|
909.8
|
|
|
$
|
3,763.8
|
|
|
$
|
3,474.3
|
|
Cost of
sales
|
786.5
|
|
|
837.3
|
|
|
3,265.6
|
|
|
3,088.0
|
|
Gross
profit
|
97.3
|
|
|
72.5
|
|
|
498.2
|
|
|
386.3
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Selling
|
19.9
|
|
|
17.1
|
|
|
65.7
|
|
|
69.8
|
|
General and
administrative
|
35.4
|
|
|
28.8
|
|
|
138.7
|
|
|
105.8
|
|
Transportation
|
35.7
|
|
|
38.7
|
|
|
137.1
|
|
|
154.3
|
|
Taxes other than
income taxes
|
7.3
|
|
|
5.3
|
|
|
24.1
|
|
|
19.3
|
|
Asset
impairment
|
206.9
|
|
|
2.3
|
|
|
207.3
|
|
|
35.7
|
|
Gain on the sale of
business, net
|
(236.0)
|
|
|
—
|
|
|
(236.0)
|
|
|
—
|
|
Other
|
(3.5)
|
|
|
0.4
|
|
|
3.3
|
|
|
1.7
|
|
Operating income
(loss)
|
31.6
|
|
|
(20.1)
|
|
|
158.0
|
|
|
(0.3)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(47.3)
|
|
|
(44.0)
|
|
|
(183.1)
|
|
|
(161.7)
|
|
Loss on derivative
instruments
|
(4.6)
|
|
|
(7.5)
|
|
|
(9.6)
|
|
|
(4.1)
|
|
Loss from
unconsolidated affiliates
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(18.3)
|
|
Loss on sale of
unconsolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(113.4)
|
|
Other
|
1.7
|
|
|
(0.3)
|
|
|
3.3
|
|
|
1.2
|
|
Total other
expense
|
(50.2)
|
|
|
(51.9)
|
|
|
(189.4)
|
|
|
(296.3)
|
|
Net loss before
income taxes from continuing operations
|
(18.6)
|
|
|
(72.0)
|
|
|
(31.4)
|
|
|
(296.6)
|
|
Income tax expense
(benefit) from continuing operations
|
0.1
|
|
|
(0.5)
|
|
|
(0.1)
|
|
|
0.2
|
|
Net loss from
continuing operations
|
$
|
(18.7)
|
|
|
$
|
(71.5)
|
|
|
$
|
(31.3)
|
|
|
$
|
(296.8)
|
|
Net loss from
discontinued operations, net of taxes
|
(64.9)
|
|
|
(8.1)
|
|
|
(72.5)
|
|
|
(31.8)
|
|
Net loss
|
$
|
(83.6)
|
|
|
$
|
(79.6)
|
|
|
$
|
(103.8)
|
|
|
$
|
(328.6)
|
|
Allocation of net
loss:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(83.6)
|
|
|
$
|
(79.6)
|
|
|
$
|
(103.8)
|
|
|
$
|
(328.6)
|
|
Less:
|
|
|
|
|
|
|
|
General partner's
interest in net loss
|
(1.7)
|
|
|
(1.6)
|
|
|
(2.1)
|
|
|
(6.6)
|
|
Net loss available to
limited partners
|
$
|
(81.9)
|
|
|
$
|
(78.0)
|
|
|
$
|
(101.7)
|
|
|
$
|
(322.0)
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
77,784,534
|
|
|
77,351,593
|
|
|
77,598,950
|
|
|
77,043,935
|
|
|
|
|
|
|
|
|
|
Limited partners'
interest basic and diluted net loss per unit:
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
(0.24)
|
|
|
$
|
(0.91)
|
|
|
$
|
(0.40)
|
|
|
$
|
(3.77)
|
|
From discontinued
operations
|
(0.82)
|
|
|
(0.10)
|
|
|
(0.91)
|
|
|
(0.41)
|
|
Limited partners'
interest
|
$
|
(1.06)
|
|
|
$
|
(1.01)
|
|
|
$
|
(1.31)
|
|
|
$
|
(4.18)
|
|
Cash distributions
declared per limited partner unit from
continuing operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.685
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
CONSOLIDATED BALANCE SHEETS
(In millions)
|
|
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
164.3
|
|
|
$
|
4.2
|
|
Restricted
cash
|
350.0
|
|
|
—
|
|
Accounts receivable,
net
|
354.1
|
|
|
204.9
|
|
Inventories
|
314.4
|
|
|
357.8
|
|
Derivative
assets
|
—
|
|
|
0.8
|
|
Prepaid expenses and
other current assets
|
8.7
|
|
|
10.6
|
|
Discontinued
operations, current assets
|
—
|
|
|
62.6
|
|
Total current
assets
|
1,191.5
|
|
|
640.9
|
|
Property, plant and
equipment, net
|
1,159.2
|
|
|
1,632.4
|
|
Investment in
unconsolidated affiliates
|
35.0
|
|
|
9.6
|
|
Goodwill
|
171.4
|
|
|
177.2
|
|
Other intangible
assets, net
|
107.9
|
|
|
133.5
|
|
Other noncurrent
assets, net
|
23.8
|
|
|
40.3
|
|
Discontinued
operations, noncurrent assets
|
—
|
|
|
91.3
|
|
Total
assets
|
$
|
2,688.8
|
|
|
$
|
2,725.2
|
|
LIABILITIES AND
PARTNERS' CAPITAL
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
282.3
|
|
|
$
|
275.9
|
|
Accrued interest
payable
|
52.5
|
|
|
52.5
|
|
Accrued salaries,
wages and benefits
|
35.9
|
|
|
11.1
|
|
Other taxes
payable
|
16.1
|
|
|
20.4
|
|
Obligations under
inventory financing agreements
|
103.1
|
|
|
—
|
|
Other current
liabilities
|
73.7
|
|
|
99.6
|
|
Current portion of
long-term debt
|
354.1
|
|
|
3.5
|
|
Derivative
liabilities
|
6.0
|
|
|
14.8
|
|
Discontinued
operations, current liabilities
|
2.0
|
|
|
20.4
|
|
Total current
liabilities
|
925.7
|
|
|
498.2
|
|
Pension and
postretirement benefit obligations
|
3.1
|
|
|
11.3
|
|
Other long-term
liabilities
|
1.9
|
|
|
3.3
|
|
Long-term debt, less
current portion
|
1,638.2
|
|
|
1,993.7
|
|
Total
liabilities
|
2,568.9
|
|
|
2,506.5
|
|
Commitments and
contingencies
|
|
|
|
Partners'
capital:
|
|
|
|
Partners'
capital
|
127.1
|
|
|
227.0
|
|
Accumulated other
comprehensive loss
|
(7.2)
|
|
|
(8.3)
|
|
Total partners'
capital
|
119.9
|
|
|
218.7
|
|
Total liabilities and
partners' capital
|
$
|
2,688.8
|
|
|
$
|
2,725.2
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
|
|
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
|
|
|
Operating
activities
|
|
|
|
Net loss
|
$
|
(103.8)
|
|
|
$
|
(328.6)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Net loss from
discontinued operations
|
72.5
|
|
|
31.8
|
|
Depreciation and
amortization
|
154.8
|
|
|
152.0
|
|
Amortization of
turnaround costs
|
24.3
|
|
|
33.2
|
|
Non-cash interest
expense
|
10.2
|
|
|
9.6
|
|
Unrealized gain on
derivative instruments
|
(3.6)
|
|
|
(19.9)
|
|
Asset
impairment
|
207.3
|
|
|
35.7
|
|
Equity based
compensation
|
11.6
|
|
|
5.6
|
|
Lower of cost or
market inventory adjustment
|
(30.6)
|
|
|
(38.4)
|
|
Loss from
unconsolidated affiliates
|
—
|
|
|
18.3
|
|
Loss on sale of
unconsolidated affiliates
|
—
|
|
|
113.4
|
|
Gain on sale of
business, net
|
(236.0)
|
|
|
—
|
|
Other non-cash
activities
|
10.2
|
|
|
5.4
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
(158.9)
|
|
|
(38.9)
|
|
Inventories
|
(8.5)
|
|
|
41.5
|
|
Prepaid expenses and
other current assets
|
(0.8)
|
|
|
(4.2)
|
|
Derivative
activity
|
(0.5)
|
|
|
(19.0)
|
|
Turnaround
costs
|
(14.5)
|
|
|
(8.7)
|
|
Other
assets
|
(0.5)
|
|
|
(0.6)
|
|
Accounts
payable
|
70.6
|
|
|
18.4
|
|
Accrued interest
payable
|
0.9
|
|
|
21.4
|
|
Accrued salaries,
wages and benefits
|
18.0
|
|
|
(17.8)
|
|
Other taxes
payable
|
0.9
|
|
|
3.6
|
|
Other
liabilities
|
(24.2)
|
|
|
(16.6)
|
|
Pension and
postretirement benefit obligations
|
(2.7)
|
|
|
(2.0)
|
|
Net
cash provided by (used in) discontinued operating
activities
|
(23.2)
|
|
|
8.9
|
|
Net
cash provided by (used in) operating
activities
|
(26.5)
|
|
|
4.1
|
|
Investing
activities
|
|
|
|
Additions to
property, plant and equipment
|
(70.0)
|
|
|
(139.2)
|
|
Investment in
unconsolidated affiliates
|
—
|
|
|
(45.7)
|
|
Proceeds from sale of
unconsolidated affiliates
|
—
|
|
|
29.0
|
|
Proceeds from sale of
property, plant and equipment
|
0.3
|
|
|
1.7
|
|
Proceeds from sale of
business, net
|
484.5
|
|
|
—
|
|
Net cash provided by
discontinued investing activities
|
38.6
|
|
|
—
|
|
Net cash (used in)
provided by investing activities
|
453.4
|
|
|
(154.2)
|
|
Financing
activities
|
|
|
|
Proceeds from
borrowings — revolving credit facility
|
901.2
|
|
|
1,187.1
|
|
Repayments of
borrowings — revolving credit facility
|
(911.2)
|
|
|
(1,287.9)
|
|
Proceeds from
borrowings — senior notes
|
—
|
|
|
393.1
|
|
Repayments of
borrowings — related party note
|
—
|
|
|
(75.0)
|
|
Payments on capital
lease obligations
|
(2.5)
|
|
|
(8.5)
|
|
Proceeds from
inventory financing agreements
|
100.1
|
|
|
—
|
|
Proceeds from
(payments on) other financing activities
|
(2.3)
|
|
|
8.5
|
|
Debt issuance
costs
|
(2.2)
|
|
|
(11.4)
|
|
Contributions from
Calumet GP, LLC
|
0.1
|
|
|
0.2
|
|
Distributions to
partners
|
—
|
|
|
(57.4)
|
|
Net cash provided by
financing activities
|
83.2
|
|
|
148.7
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
510.1
|
|
|
(1.4)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
4.2
|
|
|
5.6
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
514.3
|
|
|
$
|
4.2
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
RECONCILIATION OF NET LOSS
TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH
FLOW (In millions)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Reconciliation of
Net loss to EBITDA, Adjusted
EBITDA and Distributable Cash Flow:
|
(Unaudited)
|
Net loss
|
$
|
(83.6)
|
|
|
$
|
(79.6)
|
|
|
$
|
(103.8)
|
|
|
$
|
(328.6)
|
|
Add:
|
|
|
|
|
|
|
|
Interest
expense
|
47.3
|
|
|
44.0
|
|
|
183.1
|
|
|
161.7
|
|
Depreciation and
amortization
|
37.9
|
|
|
44.0
|
|
|
168.5
|
|
|
171.1
|
|
Income tax
benefit
|
—
|
|
|
(0.6)
|
|
|
(1.1)
|
|
|
(7.7)
|
|
EBITDA
|
$
|
1.6
|
|
|
$
|
7.8
|
|
|
$
|
246.7
|
|
|
$
|
(3.5)
|
|
Add:
|
|
|
|
|
|
|
|
Unrealized (gain) loss
on derivative instruments
|
$
|
(1.4)
|
|
|
$
|
3.6
|
|
|
$
|
(3.6)
|
|
|
$
|
(19.9)
|
|
Realized gain (loss)
on derivatives, not included in net loss or settled in a prior
period
|
—
|
|
|
2.8
|
|
|
—
|
|
|
(6.4)
|
|
Amortization of
turnaround costs
|
3.9
|
|
|
7.9
|
|
|
24.3
|
|
|
33.2
|
|
Impairment charges
(1)
|
206.9
|
|
|
2.5
|
|
|
207.3
|
|
|
35.9
|
|
Loss on sale of
unconsolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
113.9
|
|
Gain on the sale of
businesses, net
|
(173.4)
|
|
|
—
|
|
|
(173.4)
|
|
|
—
|
|
Non-cash equity-based
compensation and other items
|
3.6
|
|
|
3.1
|
|
|
15.9
|
|
|
5.0
|
|
Adjusted
EBITDA
|
$
|
41.2
|
|
|
$
|
27.7
|
|
|
$
|
317.2
|
|
|
$
|
158.2
|
|
Less:
|
|
|
|
|
|
|
|
Replacement and
environmental capital expenditures (2)
|
$
|
20.9
|
|
|
$
|
9.4
|
|
|
$
|
42.0
|
|
|
$
|
29.3
|
|
Cash interest expense
(3)
|
44.7
|
|
|
41.6
|
|
|
172.9
|
|
|
152.1
|
|
Turnaround
costs
|
3.2
|
|
|
—
|
|
|
14.5
|
|
|
8.7
|
|
Loss from
unconsolidated affiliates
|
—
|
|
|
—
|
|
|
(0.4)
|
|
|
(18.5)
|
|
Income tax
benefit
|
—
|
|
|
(0.6)
|
|
|
(1.1)
|
|
|
(7.7)
|
|
Distributable Cash
Flow
|
$
|
(27.6)
|
|
|
$
|
(22.7)
|
|
|
$
|
89.3
|
|
|
$
|
(5.7)
|
|
________________________
|
|
|
(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.
|
|
|
|
Impairment charges
for the full year 2016 include $34.8 million of goodwill impairment
charges related to the specialty and fuel products segments, $0.9
million of long-lived assets impairment charges related to the
specialty and fuel products segments, and $0.2 million impairment
charge related to one of our equity method investments.
|
|
|
(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,
|
|
|
2017
|
|
2016
|
|
Reconciliation of
Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net
cash provided by (used in) operating activities:
|
(Unaudited)
|
|
Distributable Cash
Flow
|
$
|
89.3
|
|
|
$
|
(5.7)
|
|
Add:
|
|
|
|
|
|
Replacement and
environmental capital expenditures (1)
|
42.0
|
|
|
29.3
|
|
Cash interest expense
(2)
|
172.9
|
|
|
152.1
|
|
Turnaround
costs
|
14.5
|
|
|
8.7
|
|
Loss from
unconsolidated affiliates
|
(0.4)
|
|
|
(18.5)
|
|
Income tax
benefit
|
(1.1)
|
|
|
(7.7)
|
|
Adjusted
EBITDA
|
$
|
317.2
|
|
|
$
|
158.2
|
|
Less:
|
|
|
|
|
|
Unrealized gain on
derivative instruments
|
$
|
(3.6)
|
|
|
$
|
(19.9)
|
|
Realized loss on
derivatives, not included in net loss or settled in a prior
period
|
—
|
|
|
(6.4)
|
|
Amortization of
turnaround costs
|
24.3
|
|
|
33.2
|
|
Impairment charges
(3)
|
207.3
|
|
|
35.9
|
|
Loss on sale of
unconsolidated affiliate
|
—
|
|
|
113.9
|
|
Gain on the sale of
businesses, net
|
(173.4)
|
|
|
—
|
|
Non-cash equity-based
compensation and other items
|
15.9
|
|
|
5.0
|
|
EBITDA
|
$
|
246.7
|
|
|
$
|
(3.5)
|
|
Add:
|
|
|
|
|
Unrealized gain on
derivative instruments
|
$
|
(3.6)
|
|
|
$
|
(19.9)
|
|
Cash interest expense
(2)
|
(172.9)
|
|
|
(152.1)
|
|
Gain on the sale of
businesses, net
|
(173.4)
|
|
|
—
|
|
Asset
impairment
|
207.3
|
|
|
35.7
|
|
Lower of cost or
market inventory adjustment
|
(30.6)
|
|
|
(39.2)
|
|
Equity-based
compensation
|
11.6
|
|
|
5.6
|
|
Loss from
unconsolidated affiliates
|
0.4
|
|
|
18.7
|
|
Loss on sale of
unconsolidated affiliates
|
—
|
|
|
113.4
|
|
Amortization of
turnaround costs
|
24.3
|
|
|
33.2
|
|
Income tax
benefit
|
1.1
|
|
|
7.7
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
(200.7)
|
|
|
(28.4)
|
|
Inventories
|
(18.1)
|
|
|
49.6
|
|
Other current
assets
|
(0.5)
|
|
|
(3.5)
|
|
Turnaround
costs
|
(14.5)
|
|
|
(8.7)
|
|
Derivative
Activity
|
(0.5)
|
|
|
(19.0)
|
|
Other
assets
|
(0.5)
|
|
|
(0.6)
|
|
Accounts
payable
|
94.1
|
|
|
21.4
|
|
Accrued interest
payable
|
0.9
|
|
|
21.4
|
|
Other current
liabilities
|
(5.3)
|
|
|
(31.1)
|
|
Other
|
7.7
|
|
|
3.4
|
|
Net cash provided by
(used in) operating activities
|
$
|
(26.5)
|
|
|
$
|
4.1
|
|
_________________________
|
|
|
(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.
|
|
|
|
Impairment charges
for the full year 2016 include $34.8 million of goodwill impairment
charges related to the specialty and fuel products segments, $0.9
million of long-lived assets impairment charges related to the
specialty and fuel products segments, and $0.2 million impairment
charge related to one of our equity method investments.
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. RECONCILIATION OF SEGMENT
ADJUSTED EBITDA TO NET LOSS (In millions)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Reconciliation of
Segment Adjusted EBITDA to Net loss:
|
(Unaudited)
|
Segment Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Specialty products
Adjusted EBITDA
|
$
|
30.8
|
|
|
$
|
28.0
|
|
|
$
|
186.5
|
|
|
$
|
188.9
|
|
Fuel products Adjusted
EBITDA
|
10.7
|
|
|
3.2
|
|
|
127.8
|
|
|
(10.1)
|
|
Discontinued
operations Adjusted EBITDA
|
(0.3)
|
|
|
(3.5)
|
|
|
2.9
|
|
|
(20.6)
|
|
Total segment and
discontinued operations Adjusted EBITDA
|
$
|
41.2
|
|
|
$
|
27.7
|
|
|
$
|
317.2
|
|
|
$
|
158.2
|
|
Less:
|
|
|
|
|
|
|
|
Unrealized (gain) loss
on derivative instruments
|
$
|
(1.4)
|
|
|
$
|
3.6
|
|
|
$
|
(3.6)
|
|
|
$
|
(19.9)
|
|
Realized gain (loss)
on derivatives, not included in net loss or settled in a prior
period
|
—
|
|
|
2.8
|
|
|
—
|
|
|
(6.4)
|
|
Amortization of
turnaround costs
|
3.9
|
|
|
7.9
|
|
|
24.3
|
|
|
33.2
|
|
Impairment charges
(1)
|
206.9
|
|
|
2.5
|
|
|
207.3
|
|
|
35.9
|
|
Loss on sale of
unconsolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
113.9
|
|
Gain on sale of
businesses, net
|
(173.4)
|
|
|
—
|
|
|
(173.4)
|
|
|
—
|
|
Non-cash equity-based
compensation and other items
|
3.6
|
|
|
3.1
|
|
|
15.9
|
|
|
5.0
|
|
EBITDA
|
$
|
1.6
|
|
|
$
|
7.8
|
|
|
$
|
246.7
|
|
|
$
|
(3.5)
|
|
Less:
|
|
|
|
|
|
|
|
Interest
expense
|
$
|
47.3
|
|
|
$
|
44.0
|
|
|
$
|
183.1
|
|
|
$
|
161.7
|
|
Depreciation and
amortization
|
37.9
|
|
|
44.0
|
|
|
168.5
|
|
|
171.1
|
|
Income tax
benefit
|
—
|
|
|
(0.6)
|
|
|
(1.1)
|
|
|
(7.7)
|
|
Net loss
|
$
|
(83.6)
|
|
|
$
|
(79.6)
|
|
|
$
|
(103.8)
|
|
|
$
|
(328.6)
|
|
______________________
|
|
|
(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.
|
|
|
|
Impairment charges
for the full year 2016 include $34.8 million of goodwill impairment
charges related to the specialty and fuel products segments, $0.9
million of long-lived assets impairment charges related to the
specialty and fuel products segments, and $0.2 million impairment
charge related to one of our equity method investments.
|
View original
content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-revised-fourth-quarter-and-year-end-2017-results-300622864.html
SOURCE Calumet Specialty Products Partners, L.P.