Delaware | 001-36062 | 46-2613366 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation or organization) | File Number) | Identification No.) |
Five Concourse Parkway | ||
Suite 2500 | ||
Atlanta, Georgia | 30328 | |
(Address of principal executive office) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description | |||
99.1 | Press Release, dated February 16, 2017 |
CINER RESOURCES LP | ||
By: | Ciner Resource Partners LLC, | |
its General Partner | ||
By: | /s/ Nicole C. Daniel | |
Nicole C. Daniel | ||
Vice President, General Counsel and Secretary |
Exhibit Number | Description | |||
99.1 | Press Release, dated February 16, 2017 |
• | Net sales of $123.1 million decreased 2.6% over the prior-year fourth quarter; year-to-date net sales of $475.2 million decreased 2.3% over the prior year. |
• | Net income of $20.4 million decreased 27.9% over the prior-year fourth quarter; year-to-date net income of $86.3 million decreased 18.7% over the prior year. |
• | Adjusted EBITDA of $28.6 million decreased 20.3% over the prior-year fourth quarter; year-to-date Adjusted EBITDA of $116.5 million decreased 13.0% over the prior year. |
• | Earnings per unit was $0.49 in the fourth quarter, a decrease of 29.0% over the prior-year fourth quarter; year-to-date earnings per unit of $2.08 decreased 19.4% over the prior-year. |
• | Quarterly distribution declared per unit of $0.5670, increased 1.7% over the prior-year fourth quarter; |
• | Net cash provided by operating activities of $24.3 million decreased 48.5% over prior-year fourth quarter; year-to-date net cash provided by operating activities of $128.3 million decreased by 14.6% over the prior-year. |
• | Distributable cash flow of $10.9 million decreased 34.7% over the prior-year fourth quarter; year-to-date distributable cash flow of $49.8 million decreased 10.6% over the prior-year. The distribution coverage ratio was 0.96 and 1.10 for the fourth quarter and year ended 2016; and 1.50 and 1.27 for the fourth quarter and year ended 2015. |
• | We expect our soda ash total volume sold to increase 1% to 3%. |
• | We expect international prices to be flat to up 3%. |
• | We expect domestic pricing to be flat to down 3%. |
• | Maintenance of business capital expenditures are planned to be in the range of $12 to $15 million. |
• | Expansion capital expenditures are planned to be in the range of $23 to $28 million. |
Financial Highlights | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||
($ in millions, except per unit amounts) | 2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||
Soda ash volume produced (millions of short tons) | 0.674 | 0.679 | (0.7 | )% | 2.695 | 2.663 | 1.2 | % | |||||||||||||
Soda ash volume sold (millions of short tons) | 0.702 | 0.704 | (0.3 | )% | 2.736 | 2.655 | 3.0 | % | |||||||||||||
Net sales | $ | 123.1 | $ | 126.4 | (2.6 | )% | $ | 475.2 | $ | 486.4 | (2.3 | )% | |||||||||
Net income | $ | 20.4 | $ | 28.3 | (27.9 | )% | $ | 86.3 | $ | 106.2 | (18.7 | )% | |||||||||
Net income attributable to CINR | $ | 9.9 | $ | 13.9 | (28.8 | )% | $ | 41.4 | $ | 51.5 | (19.6 | )% | |||||||||
Basic and Diluted Earnings per Unit | $ | 0.49 | $ | 0.69 | (29.0 | )% | $ | 2.08 | $ | 2.58 | (19.4 | )% | |||||||||
Adjusted EBITDA (1) | $ | 28.6 | $ | 35.9 | (20.3 | )% | $ | 116.5 | $ | 133.9 | (13.0 | )% | |||||||||
Adjusted EBITDA attributable to CINR(1) | $ | 14.1 | $ | 17.9 | (21.2 | )% | $ | 57.2 | $ | 66.2 | (13.6 | )% | |||||||||
Net cash provided by operating activities (1) | $ | 24.3 | $ | 47.2 | (48.5 | )% | $ | 128.3 | $ | 150.2 | (14.6 | )% | |||||||||
Distributable cash flow attributable to CINR(1) | $ | 10.9 | $ | 16.7 | (34.7 | )% | $ | 49.8 | $ | 55.7 | (10.6 | )% | |||||||||
Distribution coverage ratio (1) | 0.96 | 1.50 | (36.0 | )% | 1.10 | 1.27 | (13.4 | )% | |||||||||||||
(1) See non-GAAP reconciliations |
Three Months Ended December 31, | Percent Increase/(Decrease) | ||||||||||
($ in millions, except per ton data) | 2016 | 2015 | |||||||||
Net sales ($ in millions): | |||||||||||
Domestic | $ | 48.3 | $ | 48.5 | (0.4 | )% | |||||
International | $ | 74.8 | $ | 77.9 | (4.0 | )% | |||||
Total net sales | $ | 123.1 | $ | 126.4 | (2.6 | )% | |||||
Sales volumes (thousands of short tons): | |||||||||||
Domestic (thousands of short tons) | 222.9 | 214.3 | 4.0 | % | |||||||
International (thousands of short tons) | 479.5 | 490.0 | (2.1 | )% | |||||||
Total soda ash volume sold (thousands of short tons) | 702.4 | 704.3 | (0.3 | )% | |||||||
Average sales price (per short ton): | |||||||||||
Domestic | $ | 216.62 | $ | 226.20 | (4.2 | )% | |||||
International | $ | 156.06 | $ | 159.09 | (1.9 | )% | |||||
Average | $ | 175.27 | $ | 179.51 | (2.4 | )% | |||||
Percent of net sales: | |||||||||||
Domestic sales | 39.2 | % | 38.4 | % | |||||||
International sales | 60.8 | % | 61.6 | % | |||||||
Total percent of net sales | 100.0 | % | 100.0 | % |
Years Ended December 31, | Percent Increase/(Decrease) | ||||||||||
($ in millions, except per ton data) | 2016 | 2015 | |||||||||
Net sales ($ in millions): | |||||||||||
Domestic | $ | 192.6 | $ | 194.0 | (0.7 | )% | |||||
International | $ | 282.6 | $ | 292.4 | (3.4 | )% | |||||
Total net sales | $ | 475.2 | $ | 486.4 | (2.3 | )% | |||||
Sales volumes (thousands of short tons): | |||||||||||
Domestic (thousands of short tons) | 888.3 | 851.9 | 4.3 | % | |||||||
International (thousands of short tons) | 1,847.4 | 1,803.5 | 2.4 | % | |||||||
Total soda ash volume sold (thousands of short tons) | 2,735.7 | 2,655.4 | 3.0 | % | |||||||
Average sales price (per short ton): | |||||||||||
Domestic | $ | 216.77 | $ | 227.78 | (4.8 | )% | |||||
International | $ | 152.99 | $ | 162.11 | (5.6 | )% | |||||
Average | $ | 173.70 | $ | 183.18 | (5.2 | )% | |||||
Percent of net sales: | |||||||||||
Domestic sales | 40.5 | % | 39.9 | % | |||||||
International sales | 59.5 | % | 60.1 | % | |||||||
Total percent of net sales | 100.0 | % | 100.0 | % |
($ in millions) | Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Capital Expenditures | ||||||||||||||||
Maintenance | $ | 4.7 | $ | 2.3 | $ | 10.7 | $ | 16.1 | ||||||||
Expansion | 4.8 | 5.5 | 15.5 | 18.0 | ||||||||||||
Total | $ | 9.5 | $ | 7.8 | $ | 26.2 | $ | 34.1 | ||||||||
Operating and Other Data: | ||||||||||||||||
Ore to ash ratio (1) | 1.57: 1.0 | 1.55: 1.0 | 1.50: 1.0 | 1.52: 1.0 | ||||||||||||
(1) Ore to ash ratio expresses the number of short tons of trona ore needed to produce one short ton of soda ash and includes our deca rehydration recovery process. |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
(In millions, except per unit data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net sales | $ | 123.1 | $ | 126.4 | $ | 475.2 | $ | 486.4 | |||||||
Operating costs and expenses: | |||||||||||||||
Cost of products sold | 89.9 | 85.1 | 335.6 | 332.4 | |||||||||||
Depreciation, depletion and amortization expense | 6.8 | 6.6 | 26.1 | 23.7 | |||||||||||
Selling, general and administrative expenses | 5.1 | 5.9 | 23.3 | 20.0 | |||||||||||
Loss on disposal of assets, net | 0.1 | 0.2 | 0.3 | 0.2 | |||||||||||
Total operating costs and expenses | 101.9 | 97.8 | 385.3 | 376.3 | |||||||||||
Operating income | 21.2 | 28.6 | 89.9 | 110.1 | |||||||||||
Other income/(expenses): | |||||||||||||||
Interest expense | (0.9 | ) | (1.0 | ) | (3.6 | ) | (4.0 | ) | |||||||
Other, net | 0.1 | 0.7 | — | 0.1 | |||||||||||
Total other income/(expense), net | (0.8 | ) | (0.3 | ) | (3.6 | ) | (3.9 | ) | |||||||
Net income | $ | 20.4 | $ | 28.3 | $ | 86.3 | $ | 106.2 | |||||||
Net income attributable to non-controlling interest | 10.5 | 14.4 | 44.9 | 54.7 | |||||||||||
Net income attributable to Ciner Resources LP | $ | 9.9 | $ | 13.9 | $ | 41.4 | $ | 51.5 | |||||||
Other comprehensive income/(loss): | |||||||||||||||
Income (loss) on derivative financial instruments | 1.8 | 0.5 | 0.9 | (3.4 | ) | ||||||||||
Comprehensive income | 22.2 | 28.8 | 87.2 | 102.8 | |||||||||||
Comprehensive income attributable to non-controlling interest | 11.4 | 14.6 | 45.3 | 53.0 | |||||||||||
Comprehensive income attributable to Ciner Resources LP | $ | 10.8 | $ | 14.2 | $ | 41.9 | $ | 49.8 | |||||||
Limited partner net income per unit (basic and diluted) | $ | 0.49 | $ | 0.69 | $ | 2.08 | $ | 2.58 | |||||||
Weighted average limited partner units outstanding (basic and diluted) | 19.6 | 19.6 | 19.6 | 19.6 |
CINER RESOURCES LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
(In millions) | December 31, 2016 | December 31, 2015 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 19.7 | $ | 20.4 | |||
Accounts receivable, net | 33.4 | 33.8 | |||||
Accounts receivable - ANSAC | 46.5 | 52.2 | |||||
Accounts receivable - other affiliates | 9.0 | — | |||||
Due from affiliates, net | 6.1 | 11.9 | |||||
Inventory | 19.0 | 26.4 | |||||
Other current assets | 2.3 | 2.2 | |||||
Total current assets | 136.0 | 146.9 | |||||
Property, plant and equipment, net | 256.1 | 255.2 | |||||
Other non-current assets | 21.0 | 21.1 | |||||
Total assets | $ | 413.1 | $ | 423.2 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 8.6 | $ | — | |||
Accounts payable | 15.0 | 13.4 | |||||
Due to affiliates | 4.2 | 4.6 | |||||
Accrued expenses | 27.7 | 25.2 | |||||
Total current liabilities | 55.5 | 43.2 | |||||
Long-term debt | 89.4 | 110.0 | |||||
Other non-current liabilities | 9.0 | 6.8 | |||||
Total liabilities | 153.9 | 160.0 | |||||
Commitments and Contingencies (See Note 14) | |||||||
Equity: | |||||||
Limited partner units - Public and Ciner Holdings (19.7 units issued and outstanding at December 31, 2016 and 19.6 units issued and outstanding at December 31, 2015) | 151.0 | 154.1 | |||||
General partner unitholders - Ciner GP (0.4 units issued and outstanding at December 31, 2016 and 2015, respectively) | 3.9 | 4.0 | |||||
Accumulated other comprehensive loss | (1.6 | ) | (2.1 | ) | |||
Partners’ capital attributable to Ciner Resources LP | 153.3 | 156.0 | |||||
Non-controlling interests | 105.9 | 107.2 | |||||
Total equity | 259.2 | 263.2 | |||||
Total liabilities and partners’ equity | $ | 413.1 | $ | 423.2 |
Years Ended December 31, | |||||||
(In millions) | 2016 | 2015 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 86.3 | $ | 106.2 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization expense | 26.5 | 24.1 | |||||
Loss on disposal of assets, net | 0.3 | 0.2 | |||||
Equity-based compensation expense | 0.6 | 1.1 | |||||
Other non-cash items | 0.4 | 0.8 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase)/decrease in: | |||||||
Accounts receivable - net | 0.4 | 1.7 | |||||
Accounts receivable - ANSAC | 5.7 | 18.2 | |||||
Accounts receivable - Affiliates others | (9.0 | ) | — | ||||
Inventory | 7.0 | (3.7 | ) | ||||
Other current and other non-current assets | 0.2 | (0.9 | ) | ||||
Due from affiliates - net | 5.7 | 7.7 | |||||
Increase/(decrease) in: | |||||||
Accounts payable | 1.1 | 1.8 | |||||
Due to affiliates | (0.4 | ) | (1.1 | ) | |||
Accrued expenses and other liabilities | 3.5 | (5.9 | ) | ||||
Net cash provided by operating activities | 128.3 | 150.2 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (25.3 | ) | (35.7 | ) | |||
Net cash used in investing activities | (25.3 | ) | (35.7 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings on revolving credit facility | 15.0 | 5.0 | |||||
Repayments on revolving credit facility | (27.0 | ) | (40.0 | ) | |||
Distributions to common unitholders | (22.2 | ) | (21.2 | ) | |||
Distributions to subordinated unitholders | (22.0 | ) | (21.2 | ) | |||
Distributions to general partner | (0.9 | ) | (0.9 | ) | |||
Distributions to non-controlling interest | (46.6 | ) | (46.8 | ) | |||
Net cash used in financing activities | (103.7 | ) | (125.1 | ) | |||
Net (decrease)/increase in cash and cash equivalents | (0.7 | ) | (10.6 | ) | |||
Cash and cash equivalents at beginning of year | 20.4 | 31.0 | |||||
Cash and cash equivalents at end of year | $ | 19.7 | $ | 20.4 |
• | Adjusted EBITDA; |
• | Distributable cash flow; and |
• | Distribution coverage ratio. |
• | our operating performance as compared to other publicly traded partnerships in our industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods; |
• | the ability of our assets to generate sufficient cash flow to make distributions to our unitholders; |
• | our ability to incur and service debt and fund capital expenditures; and |
• | the viability of capital expenditure projects and the returns on investment of various investment opportunities. |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
($ in millions, except per unit data) | |||||||||||||||
Reconciliation of Adjusted EBITDA to net income: | |||||||||||||||
Net income | $ | 20.4 | $ | 28.3 | $ | 86.3 | $ | 106.2 | |||||||
Add backs: | |||||||||||||||
Depreciation, depletion and amortization expense | 6.8 | 6.6 | 26.1 | 23.7 | |||||||||||
Interest expense | 0.9 | 1.0 | 3.6 | 4.0 | |||||||||||
Restructuring charges (included in selling, general and administrative expenses) | 0.5 | — | 0.5 | — | |||||||||||
Adjusted EBITDA | $ | 28.6 | $ | 35.9 | $ | 116.5 | $ | 133.9 | |||||||
Less: Adjusted EBITDA attributable to non-controlling interest | 14.5 | 18.0 | 59.3 | 67.7 | |||||||||||
Adjusted EBITDA attributable to Ciner Resources LP | $ | 14.1 | $ | 17.9 | $ | 57.2 | $ | 66.2 | |||||||
Reconciliation of distributable cash flow to Adjusted EBITDA attributable to Ciner Resources LP: | |||||||||||||||
Adjusted EBITDA attributable to Ciner Resources LP | $ | 14.1 | $ | 17.9 | $ | 57.2 | $ | 66.2 | |||||||
Less: Cash interest expense, net attributable to CINR | 0.4 | 0.5 | 1.6 | 2.1 | |||||||||||
Maintenance capital expenditures attributable to CINR (1) | 2.8 | 0.7 | 5.8 | 8.4 | |||||||||||
Distributable cash flow attributable to Ciner Resources LP | $ | 10.9 | $ | 16.7 | $ | 49.8 | $ | 55.7 | |||||||
Cash distribution declared per unit | $ | 0.57 | $ | 0.56 | $ | 2.27 | $ | 2.19 | |||||||
Total distributions to unitholders and general partner | $ | 11.4 | $ | 11.1 | $ | 45.4 | $ | 43.8 | |||||||
Distribution coverage ratio | 0.96 | 1.50 | 1.10 | 1.27 | |||||||||||
Reconciliation of Adjusted EBITDA to net cash from operating activities: | |||||||||||||||
Net cash provided by operating activities | $ | 24.3 | $ | 47.2 | $ | 128.3 | $ | 150.2 | |||||||
Add/(less): | |||||||||||||||
Amortization of long-term loan financing | (0.1 | ) | (0.1 | ) | (0.4 | ) | (0.4 | ) | |||||||
Equity-based compensation expense | (0.1 | ) | (0.6 | ) | (0.6 | ) | (1.1 | ) | |||||||
Net change in working capital | 3.3 | (11.4 | ) | (14.2 | ) | (17.8 | ) | ||||||||
Interest expense | 0.9 | 1.0 | 3.6 | 4.0 | |||||||||||
Other non-cash items - net | $ | 0.3 | $ | (0.2 | ) | $ | (0.2 | ) | $ | (1.0 | ) | ||||
Adjusted EBITDA | $ | 28.6 | $ | 35.9 | $ | 116.5 | $ | 133.9 | |||||||
Less: Adjusted EBITDA attributable to non-controlling interest | 14.5 | 18.0 | 59.3 | 67.7 | |||||||||||
Adjusted EBITDA attributable to Ciner Resources LP | $ | 14.1 | $ | 17.9 | $ | 57.2 | $ | 66.2 | |||||||
Less: Cash interest expense, net attributable to CINR | 0.4 | 0.5 | 1.6 | 2.1 | |||||||||||
Maintenance capital expenditures attributable to CINR (1) | 2.8 | 0.7 | 5.8 | 8.4 | |||||||||||
Distributable cash flow attributable to Ciner Resources LP | $ | 10.9 | $ | 16.7 | $ | 49.8 | $ | 55.7 | |||||||
(1) The Partnership may fund expansion-related capital expenditures with borrowings under existing credit facilities such that expansion-related capital expenditures will have no impact on cash on hand or the calculation of cash available for distribution. In certain instances, the timing of the Partnership’s borrowings and/or its cash management practices will result in a mismatch between the period of the borrowing and the period of the capital expenditure. In those instances, the Partnership adjusts designated reserves (as provided in the partnership agreement) to take account of the timing difference. Accordingly, expansion-related capital expenditures have been excluded from the presentation of cash available for distribution. |
Cumulative Four Quarters ended Q4-2016 | Q4-2016 | Q3-2016 | Q2-2016 | Q1-2016 | Q4-2015 | |||||||||||||||||||
($ in millions, except per unit data) | ||||||||||||||||||||||||
Reconciliation of Adjusted EBITDA to net income: | ||||||||||||||||||||||||
Net income | $ | 86.3 | $ | 20.4 | $ | 23.1 | $ | 21.8 | $ | 21.1 | $ | 28.3 | ||||||||||||
Add backs: | ||||||||||||||||||||||||
Depreciation, depletion and amortization expense | 26.1 | 6.8 | 6.6 | 6.4 | 6.2 | 6.6 | ||||||||||||||||||
Interest expense | 3.6 | 0.9 | 0.9 | 0.9 | 0.9 | 1.0 | ||||||||||||||||||
Restructuring charges (included in selling, general and administrative expenses) | 0.5 | 0.5 | — | — | — | — | ||||||||||||||||||
Adjusted EBITDA | $ | 116.5 | $ | 28.6 | $ | 30.6 | $ | 29.1 | $ | 28.2 | $ | 35.9 | ||||||||||||
Less: Adjusted EBITDA attributable to non-controlling interest | 59.3 | 14.5 | 15.6 | 14.9 | 14.3 | 18.0 | ||||||||||||||||||
Adjusted EBITDA attributable to Ciner Resources LP | $ | 57.2 | $ | 14.1 | $ | 15.0 | $ | 14.2 | $ | 13.9 | $ | 17.9 | ||||||||||||
Reconciliation of distributable cash flow to Adjusted EBITDA attributable to Ciner Resources LP: | ||||||||||||||||||||||||
Adjusted EBITDA attributable to Ciner Resources LP | $ | 57.2 | $ | 14.1 | $ | 15.0 | $ | 14.2 | $ | 13.9 | $ | 17.9 | ||||||||||||
Less: Cash interest expense, net attributable to CINR | $ | 1.6 | $ | 0.4 | $ | 0.4 | $ | 0.4 | $ | 0.4 | $ | 0.5 | ||||||||||||
Maintenance capital expenditures attributable to CINR(1) | $ | 5.8 | $ | 2.8 | $ | 1.2 | $ | 0.8 | $ | 1.0 | $ | 0.7 | ||||||||||||
Distributable cash flow attributable to Ciner Resources LP | $ | 49.8 | $ | 10.9 | $ | 13.4 | $ | 13.0 | $ | 12.5 | $ | 16.7 | ||||||||||||
Cash distribution declared per unit | $ | 2.27 | $ | 0.57 | $ | 0.57 | $ | 0.57 | $ | 0.56 | $ | 0.56 | ||||||||||||
Total distributions to unitholders and general partner | $ | 45.4 | $ | 11.4 | $ | 11.4 | $ | 11.4 | $ | 11.3 | $ | 11.1 | ||||||||||||
Distribution coverage ratio | 1.10 | 0.96 | 1.18 | 1.14 | 1.11 | 1.50 | ||||||||||||||||||
(1) The Partnership may fund expansion-related capital expenditures with borrowings under existing credit facilities such that expansion-related capital expenditures will have no impact on cash on hand or the calculation of cash available for distribution. In certain instances, the timing of the Partnership’s borrowings and/or its cash management practices will result in a mismatch between the period of the borrowing and the period of the capital expenditure. In those instances, the Partnership adjusts designated reserves (as provided in the partnership agreement) to take account of the timing difference. Accordingly, expansion-related capital expenditures have been excluded from the presentation of cash available for distribution. |