Business
Calumet Specialty Products Partners, L.P. Reports First Quarter 2020 Results
Commercial excellence and sales mix improvement drive core Specialty margins; Portfolio transformation, end-market diversity support resilient business model
About this update from Calumet, Inc
[{"type":"text","content":"Commercial excellence and sales mix improvement drive core Specialty margins; Portfolio transformation, end-market diversity support resilient business model\n\n\n INDIANAPOLIS, May 7, 2020 /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, 2020, as follows:\nThree Months Ended March 31,\n2020\n2019\n(Dollars in millions, except per unit data)\nNet income (loss)\n$\n(14.4)\n$\n16.4\nAdjusted net income (loss)\n$\n22.3\n$\n(5.5)\nNet income (loss) per unit\n$\n(0.18)\n$\n0.20\nAdjusted net income (loss) per unit\n$\n0.28\n$\n(0.07)\nAdjusted EBITDA\n$\n83.7\n$\n59.7\nThe Partnership's $14.4 million of Net loss and $0.18 Net loss per unit for the first quarter 2020 included a $66.3 million unfavorable net impact related to the non-cash lower of cost or market (\"LCM\") inventory adjustments, a $6.0 million non-cash loss on impairment and disposal of assets and a $31.6 million unrealized hedging gain. Excluding these and other non-cash charges, Adjusted net income and Adjusted net income per unit were $22.3 million and $0.28, respectively. The Partnership's $83.7 million of Adjusted EBITDA for the first quarter 2020 excluded a $66.3 million unfavorable net impact related to the non-cash LCM inventory adjustments.\nFor 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.\"\nManagement Commentary\n\"Despite the slowing demand towards the end of the quarter, Calumet delivered another solid quarter and start to the year, as focused execution against our specialty-focused strategy and improved operations in our fuel products segment combined to deliver the strongest first quarter of Adjusted EBITDA since 2015, including net loss of $14.4 million and Adjusted EBITDA of $83.7 million,\" said Chief Executive Officer Steve Mawer. \"Our core specialty business delivered strong profitability in the quarter, driven by the Partnership's commercial excellence initiatives tha...