Calumet Specialty Merchandise Companions, L.P. Stories Fourth Quarter and Yr Finish 2020 Outcomes

INDIANAPOLIS, March 3, 2021 /PRNewswire/ — Calumet Specialty Merchandise Companions, L.P. (NASDAQ: CLMT) (the “Partnership,” “Calumet,” “we,” “our” or “us”), a number one unbiased producer of petroleum-based specialty merchandise, immediately reported outcomes for the fourth quarter and yr ended December 31, 2020, as follows:

For the fourth quarter 2020, the Partnership’s $82.1 million Web loss, or $1.03 of web loss per unit, included a $7.0 million favorable web impression associated to the non-cash decrease of price or market (“LCM”) stock changes and the liquidation of last-in, first-out (“LIFO”) stock layers. Excluding the impression of LCM, LIFO and different non-cash and non-recurring objects, Adjusted web loss and Adjusted web loss per unit had been $69.8 million and $0.89 per unit, respectively. The Partnership’s $(8.6) million of Adjusted EBITDA for the fourth quarter of 2020 excluded the favorable web impression of LCM and the liquidation of LIFO layers.

For the total yr 2020, the Partnership’s $149.0 million Web loss, or $1.86 of web loss per unit, included a $28.5 million unfavorable web impression associated to the non-cash LCM stock changes and the liquidation of LIFO stock layers. Excluding the impression of LCM, LIFO and different non-cash and non-recurring objects, Adjusted web loss and Adjusted web loss per unit had been $105.2 million and $1.34 per unit, respectively. The Partnership’s $141.5 million of Adjusted EBITDA for the yr ended December 31, 2020 excluded the unfavorable web impression of LCM and the liquidation of LIFO layers.

Traders are suggested to evaluate the Partnership’s annual report on Kind 10-Ok that will probably be filed immediately for additional particulars on the 2020 outcomes, in addition to the investor relations part of the Partnership’s web site the place an up to date investor presentation for the fourth quarter of 2020 has been supplied. For detailed info on Adjusted web loss, Adjusted web loss per unit, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted web loss per unit, Specialty merchandise section Adjusted gross revenue, Gas merchandise section Adjusted gross revenue (loss) and a reconciliation of such measures to the closest comparable U.S. GAAP measure for the intervals introduced above, please see the sections of this launch entitled “Non-GAAP Monetary Measures” and “Non-GAAP Reconciliations.”

Administration Commentary

“In a troublesome and difficult pandemic yr, the group efficiently targeted on execution. We had been notably happy that our core Specialties enterprise had an especially profitable 2020,” stated Steve Mawer, our Chief Government Officer. “For the fourth quarter, Specialty gross revenue and Adjusted EBITDA grew by 27.6% and 43.5%, respectively, overcoming typical seasonality. We’re very pleased with the exhausting work and dedication exhibited by our group throughout an unparalleled international well being disaster.”

Mawer continued, “COVID-related demand weak spot introduced challenges to our Fuels enterprise all year long, with our outcomes negatively impacted by weak refining fundamentals and the mark-to-market of non-cash RINs prices. Regardless of this, the partnership took decisive actions and delivered a record-setting security efficiency, a step change in our price construction, and a laser focus strategy on satisfying our prospects throughout a troublesome time. These actions mixed with robust natural development in specialties, led by a report yr in our Completed Lubes & Chemical substances enterprise, helped Calumet generate optimistic free money circulation in essentially the most difficult of circumstances.”

Mawer continued, “Trying forward, we’re inspired by the continued development of our specialties enterprise and the throughout the board enchancment in demand for all of our merchandise on account of the financial restoration being pushed by the speedy rollout of the vaccine.”

Specialty Merchandise Section | Outcomes Abstract

In the course of the fourth quarter, the Specialty merchandise section gross revenue was $88.3 million in comparison with $69.2 million within the fourth quarter of 2019. The Specialty merchandise section Adjusted EBITDA of $61.4 million improved 43.5% versus the prior yr interval, whereas Adjusted gross revenue of $86.7 million improved 37.0% in comparison with the fourth quarter of 2019. Quarterly Adjusted EBITDA and gross revenue outcomes overcame typical fourth quarter seasonality and improved on each a year-over-year and sequential foundation, led by development in consumer-facing markets and a normalizing industrial market. Gross revenue per barrel outcomes of $43.69 grew 29.2% versus the prior yr quarter, and Adjusted EBITDA margins of 21.7% expanded by 750 foundation factors versus 14.2% in final yr’s fourth quarter.

Gas Merchandise Section | Outcomes Abstract

In the course of the fourth quarter, Gas merchandise section gross revenue (loss) was $(66.4) million, in comparison with $21.6 million within the year-ago interval. Fuels merchandise Adjusted gross revenue (loss) and Adjusted EBITDA of $(71.8) million and $(57.9) million had been down considerably in comparison with the fourth quarter of 2019. The first driver of the decline stemmed from the rise in RINs prices, which negatively impacted the fourth quarter gross revenue and Adjusted EBITDA outcomes. Moreover, quarterly outcomes declined versus the prior yr interval as a consequence of weak refining fundamentals, particularly the significant decline in crack spreads and tighter crude differentials in comparison with the fourth quarter of 2019.  These headwinds had been partially offset by improved fuels product rack gross sales volumes into native area of interest markets and decrease working prices captured via price rationalization efforts undertaken throughout the yr.   

Partnership Liquidity

As of December 31, 2020, the Partnership had whole liquidity of $263.8 million, comprised of $109.4 million of money readily available, plus roughly $154.4 million of availability beneath its revolving credit score facility. The borrowing base beneath the revolving credit score facility was roughly $286.1 million, and the Partnership had $23.7 million in excellent standby letters of credit score and $108.0 million excellent borrowings. The Partnership believes it can proceed to have enough liquidity from money readily available, money circulation from operations, borrowing capability and different means by which to satisfy its monetary commitments, debt service obligations, contingencies and anticipated capital expenditures.

Operations Abstract

The next desk units forth details about our mixed operations, excluding the outcomes of discontinued operations. Facility manufacturing quantity differs from gross sales quantity as a consequence of adjustments in inventories and the sale of bought gas product blendstocks similar to ethanol and biodiesel and the resale of crude oil in our gas merchandise section.

Webcast Data

A convention name is scheduled for 9:00 a.m. ET on March 3, 2021 to debate the monetary and operational outcomes for the fourth quarter of 2020. Traders, analysts and members of the media fascinated about listening to the dwell presentation are inspired to affix a webcast of the decision with accompanying presentation slides, obtainable on the Partnership’s web site at http://www.calumetspecialty.com. events may additionally take part within the name by dialing (866) 584-9671 and coming into the convention ID 7786751. A replay of the convention name will probably be obtainable a couple of hours after the occasion on the investor relations part of the Partnership’s web site, beneath the occasions and shows part and can stay obtainable for not less than 90 days.

In regards to the Partnership

Calumet Specialty Merchandise Companions, L.P. (NASDAQ: CLMT) is a grasp restricted partnership and a number one unbiased producer of high-quality, specialty hydrocarbon merchandise in North America. Calumet processes crude oil and different feedstocks into custom-made lubricating oils, solvents and waxes utilized in shopper, industrial and automotive merchandise; produces gas merchandise together with gasoline, diesel and jet gas. Calumet is predicated in Indianapolis, Indiana, and operates 9 manufacturing services positioned in northwest Louisiana, northern Montana, western Pennsylvania, Texas, and japanese Missouri.

Cautionary Assertion Concerning Ahead-Trying Statements

Sure statements and knowledge on this press launch, could represent “forward-looking statements.” The phrases “could,” “consider,” “anticipate,” “anticipate,” “estimate,” “proceed,” “plan,” “intend,” “foresee,” “ought to,” “would,” “may” or different comparable expressions are supposed to determine forward-looking statements, that are typically not historic in nature. The statements mentioned on this press launch that aren’t purely historic information are forward-looking statements, together with, however not restricted to, the statements concerning (i) the impact, impression, potential length or different implications of the continued novel coronavirus (“COVID-19”) pandemic and international crude oil manufacturing ranges on our enterprise and operations, (ii) the demand for refined petroleum merchandise in markets we serve, (iii) our expectation concerning our enterprise outlook and money flows, (iv) our expectation concerning anticipated capital expenditures and strategic initiatives, and (v) our capacity to satisfy our monetary commitments, debt service obligations, debt instrument covenants, contingencies and anticipated capital expenditures. These forward-looking statements are based mostly on our present expectations and beliefs regarding future developments and their potential impact on us. Whereas administration believes that these forward-looking statements are affordable as and when made, there might be no assurance that future developments affecting us will probably be people who we anticipate. All feedback regarding our expectations for future gross sales and working outcomes are based mostly on our forecasts for our current operations and don’t embrace the potential impression of any future acquisition or disposition transactions. Our forward-looking statements contain important dangers and uncertainties (a few of that are past our management) and assumptions that would trigger our precise outcomes to vary materially from our historic expertise and our current expectations or projections. Identified materials components that would trigger precise outcomes to vary materially from these within the forward-looking statements embrace: the general demand for specialty hydrocarbon merchandise, fuels and different refined merchandise; the extent of overseas and home manufacturing of crude oil and refined merchandise; our capacity to provide specialty merchandise and fuels merchandise that meet our prospects’ distinctive and exact specs; the impression of fluctuations and speedy will increase or decreases in crude oil and crack unfold costs, together with the ensuing impression on our liquidity; the outcomes of our hedging and different danger administration actions; our capacity to adjust to monetary covenants contained in our debt devices; the provision of, and our capacity to consummate, acquisition or mixture alternatives and the impression of any accomplished acquisitions; labor relations; our entry to capital to fund expansions, acquisitions and our working capital wants and our capacity to acquire debt or fairness financing on passable phrases; profitable integration and future efficiency of acquired property, companies or third-party product provide and processing relationships; our capacity to well timed and successfully combine the operations of acquired companies or property, notably these in new geographic areas or in new traces of enterprise; environmental liabilities or occasions that aren’t coated by an indemnity, insurance coverage or current reserves; upkeep of our credit score scores and talent to obtain open credit score traces from our suppliers; demand for varied grades of crude oil and ensuing adjustments in pricing situations; fluctuations in refinery capability; our capacity to entry enough crude oil provide via long-term or month-to-month evergreen contracts and on the spot market; the consequences of competitors; continued creditworthiness of, and efficiency by, counterparties; the impression of present and future legal guidelines, rulings and governmental rules, together with steerage associated to the Dodd-Frank Wall Avenue Reform and Client Safety Act; the prices of complying with the Renewable Gas Commonplace, together with the costs paid for RINs; shortages or price will increase of energy provides, pure fuel, supplies or labor; hurricane or different climate interference with enterprise operations; our capacity to entry the debt and fairness markets; accidents or different unscheduled shutdowns; and normal financial, market or enterprise situations.

For added info concerning identified materials components that would trigger our precise outcomes to vary from our projected outcomes, please see our filings with the Securities and Trade Fee (“SEC”), together with our newest Annual Report on Kind 10-Ok and Present Stories on Kind 8-Ok.

Readers are cautioned to not place undue reliance on forward-looking statements, which communicate solely as of the date they’re made. We undertake no obligation to publicly replace or revise any forward-looking statements after the date they’re made, whether or not on account of new info, future occasions or in any other case.

Non-GAAP Monetary Measures

Our administration makes use of sure non-GAAP efficiency measures to investigate working section efficiency and non-GAAP monetary measures to guage previous efficiency and prospects for the long run to complement our monetary info introduced in accordance with GAAP. These monetary and operational non-GAAP measures are essential components in assessing our working outcomes and profitability and embrace efficiency and liquidity measures together with sure key working metrics.

In the course of the first quarter of 2020, we modified how we calculate Adjusted EBITDA, which is utilized by administration for evaluating efficiency, allocating sources and managing our enterprise. The revised calculation of Adjusted EBITDA now excludes the impression of LCM stock changes and the liquidation of stock layers calculated utilizing the last-in, first-out (“LIFO”) methodology, which had been beforehand included. This revised calculation higher displays the efficiency of our enterprise segments together with money flows. Adjusted EBITDA has been revised for all intervals introduced to persistently replicate this transformation. We beforehand additionally introduced Adjusted EBITDA (excluding LCM/LIFO), which is in step with our revised definition of Adjusted EBITDA.

We use the next efficiency and liquidity measures:

EBITDA: We outline EBITDA for any interval as web earnings (loss) plus curiosity expense (together with amortization of debt issuance prices), earnings taxes and depreciation and amortization.

Adjusted EBITDA: We outline Adjusted EBITDA for any interval as: EBITDA adjusted for (a) impairment; (b) unrealized positive factors and losses from mark to market accounting for hedging actions; (c) realized positive factors and losses beneath by-product devices excluded from the dedication of web earnings (loss); (d) non-cash equity-based compensation expense and different non-cash objects (excluding objects similar to accruals of money bills in a future interval or amortization of a pay as you go money expense) that had been deducted in computing web earnings (loss); (e) debt refinancing charges, premiums and penalties; (f) any web achieve or loss realized in reference to an asset sale that was deducted in computing web earnings (loss); (g) LCM stock changes; (h) the impression of liquidation of stock layers calculated utilizing the LIFO methodology; and (i) all extraordinary, uncommon or non-recurring objects of achieve or loss, or income or expense.

Distributable Money Circulate: We outline Distributable Money Circulate for any interval as Adjusted EBITDA much less substitute and environmental capital expenditures, turnaround prices, money curiosity expense (consolidated curiosity expense much less non-cash curiosity expense), achieve (loss) from unconsolidated associates, web of money distributions and earnings tax expense (profit).

Adjusted EBITDA Margin: We outline Adjusted EBITDA Margin for any interval as Adjusted EBITDA divided by gross sales.

Adjusted web earnings (loss): We outline Adjusted web earnings (loss) for any interval as: web earnings (loss) adjusted for (a) impairment; (b) unrealized losses from mark-to-market accounting for hedging actions; (c) realized positive factors and losses beneath by-product devices excluded from the dedication of web earnings (loss); (d) non-cash equity-based compensation expense and different non-cash objects (excluding objects similar to accruals of money bills in a future interval or amortization of a pay as you go money expense) that had been deducted in computing web earnings (loss); (e) debt refinancing charges, premiums and penalties; (f) any web achieve or loss realized in reference to an asset sale that was deducted in computing web earnings (loss); (g) all extraordinary, uncommon or non-recurring objects of achieve or loss, or income or expense; (h) LCM stock changes; and (i) the impression of liquidation of stock layers calculated utilizing the LIFO methodology.

Adjusted web earnings (loss) per unit: We outline Adjusted web earnings (loss) per unit for any interval as Adjusted web earnings (loss) divided by common restricted companion models primary and diluted.

Specialty merchandise section Adjusted gross revenue: We outline Specialty merchandise section Adjusted gross revenue for any interval as Specialty merchandise section gross revenue excluding the impression of LCM stock changes and the impression of liquidation of stock layers calculated utilizing the LIFO methodology.

Gas merchandise section Adjusted gross revenue (loss): We outline Gas merchandise section Adjusted gross revenue (loss) for any interval as Gas merchandise section gross revenue (loss) excluding the impression of LCM stock changes and the impression of liquidation of stock layers calculated utilizing the LIFO methodology.

Additional, administration and varied buyers use the ratio of Web debt (outlined as whole debt much less money) to Adjusted EBITDA, or “web debt leverage,” as a measure of our monetary power and talent to incur incremental indebtedness when making key funding choices and evaluating us towards friends. The metric “whole debt much less money” consists of borrowed long-term debt, letters of credit score, and finance lease obligations, much less money.

The definition of Adjusted EBITDA that’s introduced on this press launch is just like the calculation of (i) “Consolidated Money Circulate” contained within the indentures governing our 7.625% senior notes due January 15, 2022, that had been issued in November 2013 (the “2022 Notes”), our 7.75% senior notes due April 15, 2023, that had been issued in March 2015 (the “2023 Notes”), our 9.25% senior secured first lien notes due July 15, 2024, that had been issued in August 2020 (the “2024 Secured Notes”), and our 11.00% senior notes due April 15, 2025, that had been issued in October 2019 (the “2025 Notes”) and (ii) “Consolidated EBITDA” contained within the credit score settlement governing our revolving credit score facility. We’re required to report Consolidated Money Circulate to the holders of our 2022 Notes, 2023 Notes, 2024 Secured Notes, and 2025 Notes and Consolidated EBITDA to the lenders beneath our revolving credit score facility, and these measures are utilized by them to find out our compliance with sure covenants governing these debt devices. Please see our filings with the SEC, together with our most up-to-date Annual Report on Kind 10-Ok and Present Stories on Kind 8-Ok, for added particulars concerning the covenants governing our debt devices.

These non-GAAP measures are used as supplemental monetary measures by our administration and by exterior customers of our monetary statements similar to buyers, business banks, analysis analysts and others, to evaluate:

• the monetary efficiency of our property with out regard to financing strategies, capital construction or historic price foundation;
• the flexibility of our property to generate money enough to pay curiosity prices and help our indebtedness;
• our working efficiency and return on capital as in comparison with these of different corporations in our business, with out regard to financing or capital construction;
• the viability of acquisitions and capital expenditure tasks and the general charges of return on different funding alternatives; and
• our working efficiency excluding the non-cash impression of LCM and LIFO stock changes.

We consider that these non-GAAP measures are helpful to analysts and buyers, as they exclude transactions not associated to our core money working actions and supply metrics to investigate our capacity to pay distributions and curiosity prices. We consider that excluding these transactions permits buyers to meaningfully analyze traits and efficiency of our core money operations.

EBITDA, Adjusted EBITDA, Distributable Money Circulate, Adjusted web earnings (loss), Adjusted web earnings (loss) per unit, and section Adjusted gross revenue (loss) shouldn’t be thought-about options to Web earnings (loss), Working earnings (loss), Web money supplied by (utilized in) working actions, gross revenue (loss) or another measure of economic efficiency introduced in accordance with GAAP. In evaluating our efficiency as measured by EBITDA, Adjusted EBITDA, Distributable Money Circulate, Adjusted web earnings (loss), Adjusted web earnings (loss) per unit, and section Adjusted gross revenue (loss) administration acknowledges and considers the constraints of those measurements. EBITDA and Adjusted EBITDA don’t replicate our obligations for the fee of earnings taxes, curiosity expense or different obligations similar to capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Money Circulate and Adjusted web earnings (loss), Adjusted web earnings (loss) per unit, and section Adjusted gross revenue (loss) are only some of a number of measurements that administration makes use of. Furthermore, our EBITDA, Adjusted EBITDA, Distributable Money Circulate, Adjusted web earnings (loss), Adjusted web earnings (loss) per unit and section Adjusted gross revenue (loss) might not be akin to equally titled measures of one other firm as a result of all corporations could not calculate EBITDA, Adjusted EBITDA, Distributable Money Circulate, Adjusted web earnings (loss), Adjusted web earnings (loss) per unit and section Adjusted gross revenue (loss) in the identical method. Please see the part of this launch entitled “Non-GAAP Reconciliations” for tables that current reconciliations of EBITDA, Adjusted EBITDA, Distributable Money Circulate and Adjusted web earnings (loss) to Web earnings (loss), our most instantly comparable GAAP monetary efficiency measure; Distributable Money Circulate to web money supplied by (utilized in) working actions, our most instantly comparable GAAP liquidity measure, for every of the intervals indicated; and section Adjusted gross revenue (loss) to section gross revenue (loss), our most instantly comparable GAAP monetary efficiency measure.

SOURCE Calumet Specialty Merchandise Companions, L.P.

Associated Hyperlinks

http://www.calumetspecialty.com