Calumet's Mixed Bag Q1: From Loss To Grit, CEO Maps Strategic Spring Surge

Zinger Key Points
  • Calumet's sales topped $1B, exceeding analyst expectations despite a 3% YoY decline.
  • Adjusted EBITDA plunges to $21.6 million from $77.3 million, reflecting operational challenges

Calumet Specialty Products Partners LP CLMT reported a first-quarter fiscal 2024 sales decline of 3% year-over-year to $1.01 billion, beating the consensus of $900.795 million.

CLMT reported a net loss per unit of $(0.51), a decline from $0.23 YoY, beating the consensus of $(0.57).

The gross profit totaled $78.5 million (-18.7% Y/Y), and the margin contracted 151 bps to 7.8%.

The operating income for the quarter contracted to $36.3 million from $43 million a year ago, and the margin was 3.6%, down from 4.2% YoY.

Adjusted EBITDA was $21.6 million compared to $77.3 million a year ago, margin contracted to 2.2% from 7.5% a year ago.

“We’re anticipating an exciting and strategically important spring and summer at Calumet as we remain on pace to complete our C-Corp conversion and demonstrate the competitive advantages of Montana Renewables. Further, our DOE loan process and MaxSAF project preparation are progressing well,” commented Todd Borgmann, CEO. 

“We enter the second quarter with solid operating momentum after executing a successful turnaround at our Shreveport facility and sequential monthly financial and operational improvement at Montana Renewables,” added Borgmann.

Montana Renewables achieved positive EBITDA in March, continuing into April. The first quarter was impacted by rising crude prices affecting asphalt margins and the seasonal closure of our Montana asphalt facility, which is now open for the paving season.

Net cash used in operating activities for the quarter totaled $(94) million compared to $(26.7) million a year ago.

Cash and equivalents stood at $23.9 million at the end of the quarter. Total facility production in the quarter declined by 1.3% Y/Y.

In March, the company issued and sold $200 million in aggregate principal amount of a new series of the Issuers’ 9.25% Senior Secured First Lien Notes due 2029 in a private placement transaction.

Price Action: CLMT shares are trading lower by 0.87% at $16.02 premarket at the last check Friday.

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