INDIANAPOLIS, May 10, 2019
/PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ:
CLMT) (the "Partnership," "Calumet," the "Company," "we," "our" or
"us"), a leading independent producer of specialty hydrocarbon and
fuel products, today reported results for the first quarter ended
March 31, 2019, as follows:
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
|
(Dollars in
millions, except per unit data)
|
Net income
(loss)
|
$
|
16.4
|
|
$
|
(4.8)
|
Adjusted net
loss
|
$
|
(0.7)
|
|
$
|
(2.8)
|
Earnings (loss) per
unit
|
$
|
0.20
|
|
$
|
(0.06)
|
Adjusted loss per
unit
|
$
|
(0.01)
|
|
$
|
(0.04)
|
Adjusted
EBITDA
|
$
|
97.7
|
|
$
|
75.0
|
Adjusted EBITDA
(excluding LCM/LIFO)
|
$
|
59.7
|
|
$
|
71.9
|
The Partnership's $16.4 million of Net income
and $0.20 of Earnings per unit for the first quarter 2019
included, among other items, a $38.0 million favorable
net impact related to the non-cash lower of cost or market ("LCM")
inventory adjustments and the liquidation of last-in, first-out
("LIFO") inventory layers, as well as an $11.7 million asset disposal and impairment loss.
Excluding the impact of LCM, LIFO, asset disposal and impairment
losses, and other non-cash items, Adjusted net loss and Adjusted
loss per unit were $0.7 million and $0.01 per unit,
respectively. The Partnership's $97.7
million of Adjusted EBITDA for the first quarter 2019
included a $38.0 million favorable
net impact related to the non-cash LCM inventory adjustments and
the liquidation of LIFO inventory layers. Excluding these impacts,
Adjusted EBITDA (excluding-LCM/LIFO) was $59.7 million.
For detailed information on the non-GAAP measures presented in
this release and a reconciliation of such measures to the nearest
comparable GAAP measure for the periods presented above, please see
the sections of this release entitled "Non-GAAP Financial Measures"
and "Non-GAAP Reconciliations."
Management Commentary
"Calumet delivered another strong quarter to start the year, as
good execution against our strategy drove the best first quarter
results for our core Specialty business that we've had in three
years, including Net Income of $16.4
million and Adjusted EBITDA of $97.7
million, or $59.7 million
after excluding favorable non-cash inventory adjustments," said Tim
Go, Chief Executive Officer of Calumet. "Our core business
profitability continues to grow, our operational execution is
improving, and our operating cash flows and liquidity are
strengthening. The Partnership's improved first quarter results
reflect the benefits of the new strategic plans implemented across
our core Specialty business last year which, in turn, are helping
drive the meaningful sequential and year-over-year improvements to
both our Gross Profit and Adjusted EBITDA. During the quarter, our
Fuels business also made positive contributions to our consolidated
results despite weaker market conditions. In addition, our
Self-Help Phase II program captured over $13
million in Adjusted EBITDA. These self-help gains were
achieved by the new general managers of our business lines
leveraging data driven insights from our new enterprise resource
planning system, which is allowing us to better identify
opportunities to lower costs, improve margins and identify
potential growth opportunities."
Go concluded, "During the quarter, our liquidity position
improved by $9 million, to
$460 million, driven by $27.4 million of cash flow from operations. This
improvement in liquidity came despite repurchasing approximately
$23 million face amount of 2021 Notes
in the open market during the first quarter. Since the start of the
year, we have repurchased a total of $50
million face amount of 2021 Notes through the end of April.
Calumet's net debt/EBITDA leverage has improved to 4.9x, and I am
pleased to report that we extended the term on our inventory
financing arrangement with our third-party lender to 2023,
demonstrating the Partnership's access to capital. Improving the
Partnership's capital structure continues to be our most important
strategic goal, and while we are pleased with the advancements made
during the quarter, we remain committed to delevering our balance
sheet further as we continue our transformation to be the premiere
specialty petroleum products company in the world."
Specialty Products Segment | Results Summary
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
|
(Dollars in
millions, except per barrel data)
|
Specialty products
segment gross profit
|
$
|
92.9
|
|
|
$
|
69.6
|
|
Specialty products
segment gross profit (excluding LCM/LIFO)
|
$
|
87.2
|
|
|
$
|
67.4
|
|
Specialty products
segment Adjusted EBITDA
|
$
|
56.3
|
|
|
$
|
37.7
|
|
Specialty products
segment Adjusted EBITDA (excluding LCM/LIFO)
|
$
|
50.6
|
|
|
$
|
35.5
|
|
Specialty products
segment gross profit per barrel
|
$
|
38.07
|
|
|
$
|
33.11
|
|
Specialty products
segment gross profit per barrel (excluding LCM/LIFO)
|
$
|
35.73
|
|
|
$
|
32.06
|
|
Specialty products
quarterly Adjusted EBITDA Margin
|
16.0
|
%
|
|
14.1
|
%
|
Specialty products
segment Adjusted EBITDA Margin (excluding LCM/LIFO)
|
14.4
|
%
|
|
11.0
|
%
|
During the first quarter, Specialty products segment gross
profit was $92.9 million and Adjusted
EBITDA was $56.3 million, which
included $5.7 million of net
favorable LCM and LIFO adjustments. Excluding these non-cash
adjustments, first quarter segment gross profit was $87.2 million and Adjusted EBITDA was
$50.6 million, which is an
improvement of 29% and 43%, respectively, versus the first quarter
of 2018. Specialty products segment gross profit per barrel grew
more than 11% compared to the year-ago period. Strong segment
performance was driven in part by the contributions from the
business unit profitability plans implemented last year, as well
strong sales volume across lubricating oils and solvents products.
The Adjusted EBITDA Margin improved significantly compared to the
year-ago period, as the rationalization of low-margin products and
sales mix upgrading more than offset the negative impacts of the
significant rise in crude costs during the quarter.
Fuel Products Segment | Results Summary
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
|
(Dollars in
millions, except per barrel data)
|
Fuel products segment
gross profit
|
$
|
43.1
|
|
$
|
43.6
|
Fuel products segment
gross profit (excluding LCM/LIFO)
|
$
|
10.8
|
|
$
|
42.7
|
Fuel products segment
Adjusted EBITDA
|
$
|
41.4
|
|
$
|
38.7
|
Fuel products segment
Adjusted EBITDA (excluding LCM/LIFO)
|
$
|
9.1
|
|
$
|
37.8
|
Fuel products segment
gross profit per barrel
|
$
|
5.85
|
|
$
|
7.49
|
Fuel products segment
gross profit per barrel (excluding LCM/LIFO)
|
$
|
1.47
|
|
$
|
7.34
|
During the first quarter, Fuel products segment gross profit of
$43.1 million decreased compared to
results of $43.6 million in the
year-ago period, while Adjusted EBITDA of $41.4 million increased compared to $38.7 million in last year's comparable quarter.
Excluding the favorable impact of $32.3
million of non-cash LCM and LIFO inventory adjustments this
quarter, Adjusted EBITDA was $9.1
million, down from $37.8
million in the year-ago period, primarily due to the absence
of Renewable Identification Numbers ("RINs") hardship exemptions
this quarter. Excluding the impact of RINs hardship exemptions,
segment profitability results grew significantly year-over-year,
due to improved utilization and higher product realizations at our
Shreveport, Great Falls and San
Antonio refineries. Gross profit per barrel decreased
compared to the year-ago period, primarily due to the absence of
RINs hardship exemptions and unfavorable crude differentials for
heavy Canadian crude.
Partnership Liquidity
As of March 31, 2019, the Partnership had total liquidity
of $459.6 million, comprised of
$152.9 million of cash and
availability under the revolving credit facility of $306.7 million. As of March 31, 2019,
Calumet had a $342.4 million
borrowing base, $35.7 million in
outstanding standby letters of credit and no outstanding
borrowings. The Partnership believes it will continue to have
sufficient liquidity from cash on hand, cash flow from operations,
borrowing capacity and other means by which to meet its financial
commitments, debt service obligations, contingencies and
anticipated capital expenditures.
Financial Guidance
Full-Year 2019 Capital Spending Forecast
Through the first quarter of 2019, total capital spending was
$11.2 million, primarily related to
growth capital and maintenance and turnaround activity. For the
full-year 2019 the Partnership's capital expenditures are expected
to come within the range of $80.0
million and $90.0
million.
Operations Summary
The following table sets forth information about the
Partnership's combined 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 the Partnership's fuel
products segment.
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
|
(In
bpd)
|
Total sales volume
(1)
|
109,022
|
|
88,033
|
Total feedstock runs
(2)
|
105,434
|
|
84,492
|
Facility production:
(3)
|
|
|
|
Specialty
products:
|
|
|
|
Lubricating
oils
|
12,357
|
|
10,031
|
Solvents
|
7,935
|
|
7,984
|
Waxes
|
1,379
|
|
1,239
|
Packaged and
synthetic specialty products (4)
|
1,874
|
|
2,438
|
Other
|
1,172
|
|
1,706
|
Total
|
24,717
|
|
23,398
|
|
|
|
|
Fuel
products:
|
|
|
|
Gasoline
|
24,610
|
|
17,848
|
Diesel
|
30,477
|
|
23,049
|
Jet fuel
|
2,629
|
|
3,747
|
Asphalt, heavy fuel
oils and other
|
19,329
|
|
16,929
|
Total
|
77,045
|
|
61,573
|
Total facility
production (3)
|
101,762
|
|
84,971
|
__________________
|
|
|
(1)
|
Total sales volume
includes sales from the production at the Partnership's 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 the Partnership's fuel products segment sales.
|
|
|
|
The increase in total
sales volume for the three months ended March 31, 2019, as
compared to the same period in 2018, is due
primarily to improved plant utilization in the first quarter of
2019.
|
|
|
(2)
|
Total feedstock runs
represent the barrels per day ("bpd") of crude oil and other
feedstocks processed at the Partnership's
facilities and at certain third-party facilities pursuant to supply
and/or processing agreements.
|
|
|
|
The increase in total
feedstock runs for the three months ended March 31, 2019, as
compared to the same period in 2018, is
due primarily to improved plant utilization in the first quarter of
2019. In the first quarter of 2018, turnaround activities at
the
Shreveport refinery and certain third-party processing facilities
and maintenance activities negatively impacted our sales
volumes.
|
|
|
(3)
|
Total facility
production represents the bpd of specialty products and fuel
products yielded from processing crude oil and other
feedstocks at the Partnership's 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 production of finished products and volume
loss.
|
|
|
|
The change in total
facility production for the three months ended March 31, 2019,
as compared to the same period in 2018, is
due primarily to the operational items discussed above in footnote
2.
|
|
|
(4)
|
Represents production
of finished lubricants and chemicals 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 unaudited condensed consolidated statements of operations
and unaudited condensed consolidated statements of cash flows for
the three months ended March 31, 2019 and 2018:
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
|
(In
millions)
|
Realized gain (loss)
on derivative instruments
|
$
|
11.7
|
|
$
|
(2.1)
|
Unrealized gain
(loss) on derivative instruments
|
|
(2.6)
|
|
|
2.0
|
Total derivative gain
(loss) reflected in the unaudited condensed consolidated statements
of
operations
|
$
|
9.1
|
|
$
|
(0.1)
|
Total gain (loss) on
commodity derivative settlements
|
$
|
11.7
|
|
$
|
(2.1)
|
Webcast Information
A conference call is scheduled for 9:00
a.m. ET on May 10, 2019 to discuss the financial and
operational results for the first quarter of 2019. Investors,
analysts and members of the media interested in listening to the
live presentation are encouraged to join a webcast of the call with
accompanying presentation slides, available on the Partnership's
website at http://www.calumetspecialty.com. Interested parties may
also participate in the call by dialing (866) 584-9671 and entering
the passcode 9294516. A replay of the conference call will be
available a few hours after the event on the investor relations
section of the Company's website, under the events and
presentations section and will remain available for at least 90
days.
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 and
produces fuel products including gasoline, diesel and jet fuel.
Calumet is based in Indianapolis,
Indiana, and operates 11 manufacturing facilities located in
northwest Louisiana, northern
Montana, western Pennsylvania, Texas, New
Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements and information in this press release may
constitute "forward-looking statements." The words "believe,"
"expect," "anticipate," "plan," "intend," "foresee," "should,"
"would," "could" or other similar expressions are intended to
identify forward-looking statements, which are generally not
historical in nature. The statements discussed in this press
release that are not purely historical data are forward-looking
statements, including, but not limited to, the statements regarding
(i) our expectation regarding our business outlook and cash flows,
(ii) our expectation regarding anticipated capital expenditures and
strategic initiatives, (iii) our ability to meet our financial
commitments, debt service obligations, contingencies and
anticipated capital expenditures, and (iv) statements regarding
future Adjusted EBITDA contributions attributable to Phase II of
our multi-year self-help program commencing in 2019. 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 or dispositions. 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
fuel 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; impact of possible divestitures of
assets or business; our access to capital, including debt and
equity markets, to fund expansions, acquisitions and our working
capital needs and our ability to obtain debt or equity financing on
satisfactory terms; successful integration and future performance
of acquired assets, businesses or third-party product supply and
processing relationships; our ability to timely and effectively
integrate the operations of acquired businesses or assets,
particularly those in new geographic areas or in new lines of
business; environmental liabilities or events that are not covered
by an indemnity, insurance or existing reserves; maintenance of our
credit ratings and ability to receive open credit lines from our
suppliers; demand for various grades of crude oil and resulting
changes in pricing conditions; fluctuations in refinery capacity;
our ability to access sufficient crude oil supply through long-term
or month-to-month evergreen contracts and on the spot market; the
effects of competition; continued creditworthiness of, and
performance by, counterparties; the impact of current and future
laws, rulings and governmental regulations, including guidance
related to the Dodd-Frank Wall Street Reform and Consumer
Protection Act; the costs of complying with the Renewable Fuels
Standard, including the prices paid for RINs; shortages or cost
increases of power supplies, natural gas, materials or labor;
hurricane or other weather interference with business operations;
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 Quarterly Reports on Form 10-Q.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to publicly update or revise
any forward-looking statements after the date they are made,
whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
Our management uses certain non-GAAP performance measures to
analyze operating segment performance and non-GAAP financial
measures to evaluate past performance and prospects for the future
to supplement our financial information presented in accordance
with GAAP. These financial and operational non-GAAP measures are
important factors in assessing our operating results and
profitability and include performance and liquidity measures along
with certain key operating metrics.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss)
plus interest expense (including debt issuance costs), income taxes
and depreciation and amortization.
Adjusted EBITDA: We define Adjusted EBITDA for any period as:
EBITDA adjusted for (a) impairment; (b) unrealized gains and
losses from mark to market accounting for hedging activities;
(c) realized gains and losses under derivative instruments
excluded from the determination of net income (loss);
(d) non-cash equity-based compensation expense and other
non-cash items (excluding items such as accruals of cash expenses
in a future period or amortization of a prepaid cash expense) that
were deducted in computing net income (loss); (e) debt
refinancing fees, premiums and penalties; (f) any net loss realized
in connection with an asset sale that was deducted in computing net
income (loss) and (g) all extraordinary, unusual or
non-recurring items of gain or loss, or revenue or expense.
Distributable Cash Flow: We define Distributable Cash Flow for
any period as Adjusted EBITDA less replacement and environmental
capital expenditures, turnaround costs, cash interest expense
(consolidated interest expense less non-cash interest expense),
income (loss) from unconsolidated affiliates, net of cash
distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any
period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss)
for any period as: net income (loss) adjusted for (a) impairment;
(b) unrealized losses from mark to market accounting for
hedging activities; (c) realized gains under derivative
instruments excluded from the determination of net income (loss);
(d) non-cash equity-based compensation expense and other
non-cash items (excluding items such as accruals of cash expenses
in a future period or amortization of a prepaid cash expense) that
were deducted in computing net income (loss); (e) debt
refinancing fees, premiums and penalties; (f) any net loss realized
in connection with an asset sale that was deducted in computing net
income (loss) and (g) all extraordinary, unusual or
non-recurring items of gain or loss, or revenue or expense; (h) LCM
inventory adjustments and (i) the impact of liquidation of LIFO
inventory layers.
Adjusted earnings (loss) per unit: We define Adjusted earnings
(loss) per unit for any period as Adjusted net income (loss)
divided by average limited partner units (diluted).
Adjusted EBITDA (excluding LCM/LIFO): We define Adjusted EBITDA
(excluding LCM/LIFO) for any period as Adjusted EBITDA excluding
the impact of LCM inventory adjustments and the impact of
liquidation of LIFO inventory layers.
Specialty products segment gross profit (excluding LCM/LIFO): We
define Specialty products segment gross profit (excluding LCM/LIFO)
for any period as Specialty products segment gross profit excluding
the impact of LCM inventory adjustments and the impact of
liquidation LIFO inventory layers.
Fuel products segment gross profit (excluding LCM/LIFO): We
define Fuel products segment gross profit (excluding LCM/LIFO) for
any period as Fuel products segment gross profit excluding the
impact of LCM inventory adjustments and the impact of liquidation
of LIFO inventory layers.
The definitions of Adjusted EBITDA and Distributable Cash Flow
that are presented in this press release are consistent with the
calculation of "Consolidated Cash Flow" contained in the indentures
governing our 6.50% senior notes due April
15, 2021, that were issued in March
2014 (the "2021 Notes"), our 7.625% senior notes due
January 15, 2022, that were issued in
November 2013 (the "2022 Notes") and
our 7.75% senior notes due April 15,
2023 (the "2023 Notes"), that were issued in March 2015. We are required to report
Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes
and 2023 Notes and Adjusted EBITDA to the lenders under our
revolving credit facility, and these measures are used by them to
determine our compliance with certain covenants governing those
debt instruments. Please see our filings with the SEC, including
our most recent Annual Report on Form 10-K and Current Reports on
Form 8-K, for additional details regarding the covenants governing
our debt instruments.
These non-GAAP measures are used as supplemental financial
measures by our management and by external users of our financial
statements such as investors, commercial banks, research analysts
and others, to assess:
- the financial performance of our assets without regard to
financing methods, capital structure or historical cost basis;
- the ability of our assets to generate cash sufficient to pay
interest costs and support our indebtedness;
- our operating performance and return on capital as compared to
those of other companies in our industry, without regard to
financing or capital structure;
- the viability of acquisitions and capital expenditure projects
and the overall rates of return on alternative investment
opportunities; and
- our operating performance excluding the non-cash impact of LCM
and LIFO inventory adjustments.
We believe that these non-GAAP measures are useful to analysts
and investors, as they exclude transactions not related to our core
cash operating activities and provide metrics to analyze our
ability to pay distributions and interest costs. We believe that
excluding these transactions allows investors to meaningfully
analyze trends and performance of our core cash operations.
EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net
income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA
(excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO)
should not be considered alternatives to Net income (loss),
Operating income (loss), Net cash provided by (used in) operating
activities, gross profit or any other measure of financial
performance presented in accordance with GAAP. In evaluating our
performance as measured by EBITDA, Adjusted EBITDA, Distributable
Cash Flow, Adjusted net income (loss), Adjusted earnings (loss) per
unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit
(excluding LCM/LIFO) management recognizes and considers the
limitations of these measurements. EBITDA, Adjusted EBITDA and
Adjusted EBITDA (excluding LCM/LIFO) do not reflect our obligations
for the payment of income taxes, interest expense or other
obligations such as capital expenditures. Accordingly, EBITDA,
Adjusted EBITDA, Distributable Cash Flow and Adjusted net income
(loss), Adjusted earnings (loss) per unit, Adjusted EBITDA
(excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO)
are only a few of several measurements that management utilizes.
Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow,
Adjusted net income (loss), Adjusted earnings (loss) per unit,
Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit
(excluding LCM/LIFO) may not be comparable to similarly titled
measures of another company because all companies may not calculate
EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net
income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA
(excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO)
in the same manner. Please see the section of this release entitled
"Non-GAAP Reconciliations" for tables that present reconciliations
of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted
net income (loss) to Net income (loss), our most directly
comparable GAAP financial performance measure; Distributable Cash
Flow to net cash provided by (used in) operating activities, our
most directly comparable GAAP liquidity measure, for each of the
periods indicated; and segment gross profit (excluding LCM/LIFO) to
segment gross profit, our most directly comparable GAAP financial
performance measure.
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In millions,
except unit and per unit data)
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Sales
|
$
|
851.3
|
|
$
|
750.5
|
Cost of
sales
|
715.3
|
|
637.3
|
Gross
profit
|
136.0
|
|
113.2
|
Operating costs and
expenses:
|
|
|
|
Selling
|
13.3
|
|
14.7
|
General and
administrative
|
34.9
|
|
40.6
|
Transportation
|
35.9
|
|
30.3
|
Taxes other than
income taxes
|
5.1
|
|
1.9
|
Loss on impairment
and disposal of assets
|
11.7
|
|
0.5
|
Other operating
(income) expense
|
1.3
|
|
(16.1)
|
Operating
income
|
33.8
|
|
41.3
|
Other income
(expense):
|
|
|
|
Interest
expense
|
(32.3)
|
|
(45.2)
|
Gain (loss) from debt
extinguishment
|
0.4
|
|
(0.6)
|
Gain (loss) on
derivative instruments
|
9.1
|
|
(0.1)
|
Other
|
5.3
|
|
1.5
|
Total other
expense
|
(17.5)
|
|
(44.4)
|
Net income (loss)
from continuing operations before income taxes
|
16.3
|
|
(3.1)
|
Income tax benefit
from continuing operations
|
(0.1)
|
|
(0.2)
|
Net income (loss)
from continuing operations
|
$
|
16.4
|
|
$
|
(2.9)
|
Net loss from
discontinued operations, net of tax
|
—
|
|
(1.9)
|
Net income
(loss)
|
$
|
16.4
|
|
$
|
(4.8)
|
Allocation of net
income (loss):
|
|
|
|
Net income
(loss)
|
$
|
16.4
|
|
$
|
(4.8)
|
Less:
|
|
|
.
|
General partner's
interest in net income (loss)
|
0.3
|
|
(0.1)
|
Non-vested share
based payments
|
0.1
|
|
—
|
Net income (loss)
available to limited partners
|
$
|
16.0
|
|
$
|
(4.7)
|
Weighted average
limited partner units outstanding:
|
|
|
|
Basic
|
78,111,551
|
|
78,045,360
|
Diluted
|
78,175,007
|
|
78,045,360
|
Limited partners'
interest basic and diluted net income (loss) per unit:
|
|
|
|
From continuing
operations
|
$
|
0.20
|
|
$
|
(0.04)
|
From discontinued
operations
|
—
|
|
(0.02)
|
Limited partners'
interest
|
$
|
0.20
|
|
$
|
(0.06)
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
millions)
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
152.9
|
|
$
|
155.7
|
Accounts receivable,
net
|
265.8
|
|
|
198.0
|
Inventories
|
291.1
|
|
|
284.1
|
Derivative
assets
|
28.4
|
|
|
18.3
|
Prepaid expenses and
other current assets
|
17.5
|
|
|
13.9
|
Total current
assets
|
755.7
|
|
|
670.0
|
Property, plant and
equipment, net
|
1,069.0
|
|
|
1,098.1
|
Investment in
unconsolidated affiliates
|
25.4
|
|
|
25.4
|
Goodwill
|
171.4
|
|
|
171.4
|
Other intangible
assets, net
|
83.8
|
|
|
88.0
|
Operating lease
right-of-use assets
|
134.4
|
|
|
—
|
Other noncurrent
assets, net
|
30.7
|
|
|
34.6
|
Total
assets
|
$
|
2,270.4
|
|
$
|
2,087.5
|
LIABILITIES AND
PARTNERS' CAPITAL
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
237.7
|
|
$
|
200.6
|
Accrued interest
payable
|
44.3
|
|
|
30.7
|
Accrued salaries,
wages and benefits
|
20.7
|
|
|
25.7
|
Other taxes
payable
|
18.1
|
|
|
15.2
|
Obligations under
inventory financing agreements
|
111.8
|
|
|
105.3
|
Other current
liabilities
|
70.1
|
|
|
33.8
|
Current portion of
operating lease liabilities
|
61.3
|
|
|
—
|
Current portion of
long-term debt
|
2.2
|
|
|
3.8
|
Total current
liabilities
|
566.2
|
|
|
415.1
|
Pension and
postretirement benefit obligations
|
4.5
|
|
|
4.5
|
Other long-term
liabilities
|
1.4
|
|
|
1.5
|
Long-term operating
lease liabilities
|
73.6
|
|
|
—
|
Long-term debt, less
current portion
|
1,541.2
|
|
|
1,600.7
|
Total
liabilities
|
2,186.9
|
|
|
2,021.8
|
Commitments and
contingencies
|
|
|
|
|
|
Partners'
capital:
|
|
|
|
|
|
Partners'
capital
|
91.0
|
|
|
74.4
|
Accumulated other
comprehensive loss
|
(7.5)
|
|
|
(8.7)
|
Total partners'
capital
|
83.5
|
|
|
65.7
|
Total liabilities and
partners' capital
|
$
|
2,270.4
|
|
$
|
2,087.5
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
millions)
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Operating
activities
|
|
|
|
Net income
(loss)
|
$
|
16.4
|
|
$
|
(4.8)
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
Net loss from
discontinued operations
|
—
|
|
|
1.9
|
Depreciation and
amortization
|
28.2
|
|
|
29.7
|
Amortization of
turnaround costs
|
4.8
|
|
|
3.3
|
Non-cash interest
expense
|
1.9
|
|
|
2.7
|
(Gain) loss on debt
extinguishments
|
(0.4)
|
|
|
0.6
|
Unrealized (gain)
loss on derivative instruments
|
2.6
|
|
|
(2.0)
|
Equity based
compensation
|
2.2
|
|
|
1.1
|
Lower of cost or
market inventory adjustment
|
(38.9)
|
|
|
(3.1)
|
Operating lease
expense
|
20.8
|
|
|
—
|
Operating lease
payments
|
(20.6)
|
|
|
—
|
Loss on impairment
and disposal of assets
|
11.7
|
|
|
0.5
|
Other non-cash
activities
|
(4.0)
|
|
|
5.2
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
(69.8)
|
|
|
44.0
|
Inventories
|
31.9
|
|
|
(7.5)
|
Prepaid expenses and
other current assets
|
(3.5)
|
|
|
(8.5)
|
Derivative
activity
|
(0.1)
|
|
|
(0.1)
|
Turnaround
costs
|
(1.7)
|
|
|
(6.8)
|
Accounts
payable
|
37.2
|
|
|
(9.3)
|
Accrued interest
payable
|
14.4
|
|
|
1.6
|
Accrued salaries,
wages and benefits
|
(6.8)
|
|
|
(11.3)
|
Other taxes
payable
|
2.9
|
|
|
(1.0)
|
Other
liabilities
|
(1.8)
|
|
|
(55.3)
|
Net cash provided by
(used in) operating activities
|
27.4
|
|
|
(19.1)
|
Investing
activities
|
|
|
|
|
Additions to
property, plant and equipment
|
(9.5)
|
|
|
(17.6)
|
Investment in
unconsolidated affiliate
|
—
|
|
|
(3.8)
|
Proceeds from sale of
unconsolidated affiliate
|
5.0
|
|
|
—
|
Proceeds from sale of
business, net
|
—
|
|
|
28.0
|
Proceeds from sale of
property, plant and equipment
|
3.6
|
|
|
0.2
|
Net cash provided by
(used in) discontinued investing activities
|
2.0
|
|
|
(0.5)
|
Net cash provided by
investing activities
|
1.1
|
|
|
6.3
|
Financing
activities
|
|
|
|
Proceeds from
borrowings — revolving credit facility
|
—
|
|
|
4.5
|
Repayments of
borrowings — revolving credit facility
|
—
|
|
|
(4.7)
|
Repayments of
borrowings — senior notes
|
(23.2)
|
|
|
—
|
Payments on finance
lease obligations
|
(1.0)
|
|
|
(0.3)
|
Proceeds from
inventory financing agreements
|
279.2
|
|
|
220.4
|
Payments on inventory financing
agreements
|
(286.1)
|
|
|
(220.4)
|
Proceeds from other
financing obligations
|
0.3
|
|
|
—
|
Payments on other
financing obligations
|
(0.6)
|
|
|
(0.8)
|
Debt issuance
costs
|
—
|
|
|
(3.6)
|
Contributions from
Calumet GP, LLC
|
0.1
|
|
|
—
|
Net cash used in
financing activities
|
(31.3)
|
|
|
(4.9)
|
Net decrease in cash,
cash equivalents and restricted cash
|
(2.8)
|
|
|
(17.7)
|
Cash, cash
equivalents and restricted cash at beginning of period
|
155.7
|
|
|
514.3
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
152.9
|
|
$
|
496.6
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
|
NON-GAAP
RECONCILIATIONS
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND
DISTRIBUTABLE CASH
FLOW
|
|
(In
millions)
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Reconciliation of
Net income (loss) to EBITDA, Adjusted EBITDA and
Distributable Cash Flow:
|
(Unaudited)
|
Net income
(loss)
|
$
|
16.4
|
|
$
|
(4.8)
|
Add:
|
|
|
|
Interest
expense
|
32.3
|
|
|
45.2
|
Depreciation and
amortization
|
28.2
|
|
|
29.7
|
Income tax
benefit
|
(0.1)
|
|
|
(0.2)
|
EBITDA
|
$
|
76.8
|
|
$
|
69.9
|
Add:
|
|
|
|
Unrealized (gain)
loss on derivative instruments
|
$
|
2.6
|
|
$
|
(2.0)
|
Amortization of
turnaround costs
|
4.8
|
|
|
3.3
|
(Gain) loss from debt
extinguishment
|
(0.4)
|
|
|
0.6
|
Gain on sale of
unconsolidated affiliate(3)
|
(1.2)
|
|
|
—
|
Loss on impairment
and disposal of assets
|
11.7
|
|
|
0.5
|
Equity based
compensation and other items
|
3.4
|
|
|
2.7
|
Adjusted
EBITDA
|
$
|
97.7
|
|
$
|
75.0
|
Less:
|
|
|
|
Replacement and
environmental capital expenditures (1)
|
6.2
|
|
|
6.6
|
Cash interest expense
(2)
|
30.4
|
|
|
42.5
|
Turnaround
costs
|
1.7
|
|
|
6.8
|
Income (loss) from
unconsolidated affiliates(3)
|
3.8
|
|
|
(3.7)
|
Income tax
benefit
|
(0.1)
|
|
|
(0.2)
|
Distributable Cash
Flow
|
$
|
55.7
|
|
$
|
23.0
|
|
|
_______________
|
|
|
(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)
|
In 2018, the Company
and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for
the purposes of acquiring
Biosynthetic Technologies, LLC ("Biosynthetic Technologies"), a
startup company which developed an intellectual
property portfolio for the manufacture of renewable-based and
bioegradable esters. The initial cash investment of $3.8
million made by the Company into Biosyn was expensed in the period
ended March 31, 2018 given Biosyn's operations
were all related to research and development. The Company accounts
for its ownership in Biosyn under the equity method
of accounting. During March 2019, the Company sold its investment
to The Heritage Group and recognized a gain of $5.0
million. For comparability purposes, $3.8 million of the gain is
included in Adjusted EBITDA for the period ended March
31, 2019.
|
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)
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Reconciliation of
Distributable Cash Flow, Adjusted EBITDA and EBITDA to
Net cash provided by (used in) operating activities:
|
(Unaudited)
|
Distributable Cash
Flow
|
$
|
55.7
|
|
$
|
23.0
|
Add:
|
|
|
|
|
Replacement and
environmental capital expenditures (1)
|
6.2
|
|
|
6.6
|
Cash interest expense
(2)
|
30.4
|
|
|
42.5
|
Turnaround
costs
|
1.7
|
|
|
6.8
|
Income (loss) from
unconsolidated affiliates (3)
|
3.8
|
|
|
(3.7)
|
Income tax
benefit
|
(0.1)
|
|
|
(0.2)
|
Adjusted
EBITDA
|
$
|
97.7
|
|
$
|
75.0
|
Less:
|
|
|
|
|
Unrealized (gain)
loss on derivative instruments
|
$
|
2.6
|
|
$
|
(2.0)
|
Amortization of
turnaround costs
|
4.8
|
|
|
3.3
|
(Gain) loss from debt
extinguishment
|
(0.4)
|
|
|
0.6
|
Gain on sale of
unconsolidated affiliate(3)
|
(1.2)
|
|
|
—
|
Loss on impairment
and disposal of assets
|
11.7
|
|
|
0.5
|
Equity based
compensation and other items
|
3.4
|
|
|
2.7
|
EBITDA
|
$
|
76.8
|
|
$
|
69.9
|
Add:
|
|
|
|
|
Unrealized (gain)
loss on derivative instruments
|
$
|
2.6
|
|
$
|
(2.0)
|
Cash interest expense
(2)
|
(30.4)
|
|
|
(42.5)
|
Equity based
compensation
|
2.2
|
|
|
1.1
|
Lower of cost or
market inventory adjustment
|
(38.9)
|
|
|
(3.1)
|
(Income) loss from
unconsolidated affiliates(3)
|
(3.8)
|
|
|
3.7
|
Gain on sale of
unconsolidated affiliates(3)
|
(1.2)
|
|
|
—
|
Amortization of
turnaround costs
|
4.8
|
|
|
3.3
|
(Gain) loss from debt
extinguishment
|
(0.4)
|
|
|
0.6
|
Operating lease
expense
|
20.8
|
|
|
—
|
Operating lease
payments
|
(20.6)
|
|
|
—
|
Loss on impairment
and disposal of assets
|
11.7
|
|
|
0.5
|
Income tax
benefit
|
0.1
|
|
|
0.2
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
(69.8)
|
|
|
44.0
|
Inventories
|
31.9
|
|
|
(7.5)
|
Other current
assets
|
(3.5)
|
|
|
(8.5)
|
Derivative
activity
|
(0.1)
|
|
|
(0.1)
|
Turnaround
costs
|
(1.7)
|
|
|
(6.8)
|
Accounts
payable
|
37.2
|
|
|
(9.3)
|
Accrued interest
payable
|
14.4
|
|
|
1.6
|
Other current
liabilities
|
(5.7)
|
|
|
(67.6)
|
Other
|
1.0
|
|
|
3.4
|
Net cash provided by
(used in) operating activities
|
$
|
27.4
|
|
$
|
(19.1)
|
|
|
_______________
|
|
|
(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)
|
In 2018, the Company
and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for
the purposes of acquiring
Biosynthetic Technologies, LLC ("Biosynthetic Technologies"), a
startup company which developed an intellectual
property portfolio for the manufacture of renewable-based and
bioegradable esters. The initial cash investment of $3.8
million made by the Company into Biosyn was expensed in the period
ended March 31, 2018 given Biosyn's operations
were all related to research and development. The Company accounts
for its ownership in Biosyn under the equity method
of accounting. During March 2019, the Company sold its investment
to The Heritage Group and recognized a gain of $5.0
million. For comparability purposes, $3.8 million of the gain is
included in Adjusted EBITDA for the period ended March
31, 2019.
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
|
RECONCILIATION OF
SEGMENT ADJUSTED EBITDA TO NET INCOME (LOSS)
|
|
(In
millions)
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Reconciliation of
Segment Adjusted EBITDA to EBITDA and Net income
(loss):
|
(Unaudited)
|
Segment Adjusted
EBITDA
|
|
|
|
Specialty products
Adjusted EBITDA
|
$
|
56.3
|
|
$
|
37.7
|
Fuel products
Adjusted EBITDA
|
41.4
|
|
|
38.7
|
Discontinued
operations Adjusted EBITDA
|
—
|
|
|
(1.4)
|
Total segment
Adjusted EBITDA
|
$
|
97.7
|
|
$
|
75.0
|
Less:
|
|
|
|
Unrealized (gain)
loss on derivative instruments
|
$
|
2.6
|
|
$
|
(2.0)
|
Amortization of
turnaround costs
|
4.8
|
|
|
3.3
|
Loss on impairment
and disposal of assets
|
11.7
|
|
|
0.5
|
(Gain) loss from debt
extinguishment
|
(0.4)
|
|
|
0.6
|
Gain on sale of
unconsolidated affiliate(1)
|
(1.2)
|
|
|
—
|
Equity based
compensation and other items
|
3.4
|
|
|
2.7
|
EBITDA
|
$
|
76.8
|
|
$
|
69.9
|
Less:
|
|
|
|
Interest
expense
|
$
|
32.3
|
|
$
|
45.2
|
Depreciation and
amortization
|
28.2
|
|
|
29.7
|
Income tax
benefit
|
(0.1)
|
|
|
(0.2)
|
Net income
(loss)
|
$
|
16.4
|
|
$
|
(4.8)
|
|
|
(1)
|
In 2018, the Company
and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for
the purposes of acquiring
Biosynthetic Technologies, LLC ("Biosynthetic Technologies"), a
startup company which developed an intellectual
property portfolio for the manufacture of renewable-based and
bioegradable esters. The initial cash investment of $3.8
million made by the Company into Biosyn was expensed in the period
ended March 31, 2018 given Biosyn's operations
were all related to research and development. The Company accounts
for its ownership in Biosyn under the equity method
of accounting. During March 2019, the Company sold its investment
to The Heritage Group and recognized a gain of $5.0
million. For comparability purposes, $3.8 million of the gain is
included in Adjusted EBITDA for the period ended March
31, 2019.
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
RECONCILIATION OF
SEGMENT METRICS EXCLUDING LCM/LIFO
|
(In
millions)
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Reconciliation of
Segment Metrics Excluding LCM/LIFO:
|
(Unaudited)
|
Specialty products
segment Adjusted EBITDA
|
$
|
56.3
|
|
$
|
37.7
|
LCM inventory
adjustments
|
(6.6)
|
|
|
(2.2)
|
LIFO inventory layer
adjustments
|
0.9
|
|
|
—
|
Specialty products
segment Adjusted EBITDA (excluding LCM/LIFO)
|
$
|
50.6
|
|
$
|
35.5
|
|
|
|
|
|
Fuels products
segment Adjusted EBITDA
|
$
|
41.4
|
|
$
|
38.7
|
LCM inventory
adjustments
|
(32.3)
|
|
|
(0.9)
|
Fuels products
segment Adjusted EBITDA (excluding LCM/LIFO)
|
$
|
9.1
|
|
$
|
37.8
|
|
|
|
|
|
Continuing Operations
Adjusted EBITDA
|
97.7
|
|
|
76.4
|
Discontinued
Operations Adjusted EBITDA
|
—
|
|
|
(1.4)
|
Total Adjusted
EBITDA
|
97.7
|
|
|
75.0
|
LCM inventory
adjustments
|
(38.9)
|
|
|
(3.1)
|
LIFO inventory layer
adjustments
|
0.9
|
|
|
—
|
Total Adjusted EBITDA
(excluding LCM/LIFO)
|
$
|
59.7
|
|
$
|
71.9
|
|
|
|
|
|
Specialty products
segment gross profit
|
$
|
92.9
|
|
$
|
69.6
|
LCM inventory
adjustments
|
(6.6)
|
|
|
(2.2)
|
LIFO inventory layer
adjustments
|
0.9
|
|
|
—
|
Specialty products
segment gross profit (excluding LCM/LIFO)
|
$
|
87.2
|
|
$
|
67.4
|
|
|
|
|
|
Fuel products segment
gross profit
|
$
|
43.1
|
|
$
|
43.6
|
LCM inventory
adjustments
|
(32.3)
|
|
|
(0.9)
|
Fuel products segment
gross profit (excluding LCM/LIFO)
|
$
|
10.8
|
|
$
|
42.7
|
|
|
|
|
|
Reported Specialty
products segment gross profit per barrel
|
$
|
38.07
|
|
$
|
33.11
|
LCM/LIFO inventory
adjustments per barrel
|
(2.34)
|
|
|
(1.05)
|
Specialty products
segment gross profit per barrel (excluding LCM/LIFO)
|
$
|
35.73
|
|
$
|
32.06
|
|
|
|
|
|
Reported Fuels
products segment gross profit per barrel
|
$
|
5.85
|
|
$
|
7.49
|
LCM/LIFO inventory
adjustments per barrel
|
(4.38)
|
|
|
(0.15)
|
Fuels products
segment gross profit per barrel (excluding LCM/LIFO)
|
$
|
1.47
|
|
$
|
7.34
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED NET LOSS
|
(In
millions)
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Reconciliation of
Net Income (Loss) to Adjusted Net Loss
|
(Unaudited)
|
Net income
(loss)
|
$
|
16.4
|
|
$
|
(4.8)
|
Add:
|
|
|
|
LCM inventory
adjustments
|
(38.9)
|
|
(3.1)
|
LIFO inventory layer
adjustments
|
0.9
|
|
—
|
Unrealized (gain)
loss on derivative instruments
|
2.6
|
|
(2.0)
|
(Gain) loss from debt
extinguishment
|
(0.4)
|
|
0.6
|
Amortization of
turnaround costs
|
4.8
|
|
3.3
|
Gain on sale of
unconsolidated affiliate(1)
|
(1.2)
|
|
—
|
Loss on impairment
and disposal of assets
|
11.7
|
|
0.5
|
Equity based
compensation and other non-cash items
|
3.4
|
|
2.7
|
Adjusted net
loss
|
$
|
(0.7)
|
|
$
|
(2.8)
|
|
|
|
|
Adjusted loss per
unit
|
$
|
(0.01)
|
|
$
|
(0.04)
|
|
|
|
|
Average limited
partner units - diluted
|
|
78,175,007
|
|
|
78,045,360
|
|
|
(1)
|
In 2018, the Company
and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for
the purposes of acquiring
Biosynthetic Technologies, LLC ("Biosynthetic Technologies"), a
startup company which developed an intellectual
property portfolio for the manufacture of renewable-based and
bioegradable esters. The initial cash investment of $3.8
million made by the Company into Biosyn was expensed in the period
ended March 31, 2018 given Biosyn's operations
were all related to research and development. The Company accounts
for its ownership in Biosyn under the equity method
of accounting. During March 2019, the Company sold its investment
to The Heritage Group and recognized a gain of $5.0
million. For comparability purposes, $3.8 million of the gain is
included in Adjusted EBITDA for the period ended March
31, 2019.
|
View original
content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-first-quarter-2019-results-300847889.html
SOURCE Calumet Specialty Products Partners, L.P.