Market Overview

Ciner Resources LP Announces First Quarter 2019 Financial Results

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Ciner Resources LP (NYSE:CINR) today reported its financial and
operating results for the first quarter ended March 31, 2019.

First Quarter 2019 Financial Highlights:

  • Net sales of $130.4 million increased 7.6% over the prior-year first
    quarter.
  • Net income of $25.2 million increased 20.6% over the prior-year first
    quarter.
  • Adjusted EBITDA of $33.2 million increased 15.3% over the prior-year
    first quarter.
  • Earnings per unit of $0.61 for the quarter increased 19.6% over the
    prior-year first quarter of $0.51.
  • Quarterly distribution declared per unit of $0.340 decreased 40.0%
    compared to the prior-year first quarter.
  • Net cash provided by operating activities of $5.6 million decreased
    85.0% over prior-year first quarter.
  • Distributable cash flow for the quarter of $15.6 million was up 18.2%
    compared to the prior-year first quarter. The distribution coverage
    ratio was 2.29: 1.00 and 1.16: 1.00 for the three months ended March
    31, 2019 and 2018, respectively.

Kirk Milling, CEO, commented: "First quarter results represent the
continuation of strong operating performance along with higher than
anticipated global prices. Our focus on operational reliability is
clearly reflected in these results and when combined with lower
maintenance capital, our DCF was up 18.2% in the quarter. However,
investments in our plant continue to ramp up as our overall cash spend
on capital projects was almost $25.0 million in the quarter, primarily
driven from our cogeneration project. Given our current and anticipated
new capital plans for our expansion project, we made the decision to
reduce our distribution by 40.0% in order to utilize a balanced approach
of operating cash flow and debt to fund these investments over the next
10-12 quarters. Afterward, we believe increased production levels from
our operations will materially improve our available cash and allow us
to resume growing our distributions again."

"Going forward this year, we expect international prices to be better
than initial guidance and production rates to trend towards the higher
end of our 2019 outlook, both of which should drive improved operating
performance over the balance of the year. However, rising levels of
maintenance capital will have some counter impact to our DCF as we
continue to invest in improving our long-term operational reliability."

2019 Outlook:

  • We expect our total volume sold to increase 2% to 4%.
  • We expect domestic volume to decrease by 120,000 to 140,000 short tons
    compared to the previous estimate of 140,000 to 160,000 short tons.
  • We expect our domestic prices to be up by 5% to 7%.
  • We expect our international prices to be up by 3% to 5% compared to
    the previous estimate of 2% to 4%.
  • Maintenance of business capital expenditures are planned to be in the
    range of $20 to $25 million compared to the previous estimate of $23
    to $27 million.
  • Expansion capital expenditures are planned to be in the range of $35
    to $40 million.
   
Financial Highlights Three Months Ended
March 31,

(Dollars in millions, except per unit
amounts)

2019   2018   % Change
 
Soda ash volume produced (millions of short tons) 0.679 0.669 1.5 %
Soda ash volume sold (millions of short tons) 0.677 0.668 1.4 %
Net sales $ 130.4 $ 121.2 7.6 %
Net income $ 25.2 $ 20.9 20.6 %
Net income attributable to Ciner Resources LP $ 12.3 $ 10.1 21.8 %
Earnings per Common Unit $ 0.61 $ 0.51 19.6 %
Adjusted EBITDA (1) $ 33.2 $ 28.8 15.3 %
Adjusted EBITDA attributable to Ciner Resources LP(1) $ 16.7 $ 14.4 16.0 %
Net cash provided by operating activities $ 5.6 $ 37.3 (85.0 )%
Distributable cash flow attributable to Ciner Resources LP(1) $ 15.6 $ 13.2 18.2 %
Distribution coverage ratio (1) 2.29 1.16 97.4 %
(1)See non-GAAP reconciliations
 

Three Months Ended March 31, 2019 compared to Three Months Ended
March 31, 2018

The following table sets forth a summary of net sales, sales volumes and
average sales price, and the percentage change between the periods.

     

Three Months Ended
March 31,

Percent

Increase/

(Decrease)

Net sales (Dollars in millions, except
average sales price)
:

2019   2018
Domestic $ 52.9 $ 55.3 (4.3)%
International 77.5   65.9   17.6%
Total net sales $ 130.4   $ 121.2   7.6%
Sales volumes (thousands of short tons):
Domestic 224.4 257.0 (12.7)%
International 452.7   410.6   10.3%
Total soda ash volume sold 677.1   667.6   1.4%
Average sales price (per short ton):
Domestic $ 235.74 $ 215.18 9.6%
International $ 171.20 $ 160.50 6.7%
Average $ 192.59 $ 181.55 6.1%
Percent of net sales:
Domestic sales 40.6 % 45.6 % (11.0)%
International sales 59.4 % 54.4 % 9.2%
Total percent of net sales 100.0 % 100.0 %
Percent of sales volumes:
Domestic volume 33.1 % 38.5 % (14.0)%
International volume 66.9 % 61.5 % 8.8%
Total percent of volume sold 100.0 % 100.0 %
 

Consolidated Results

Net sales. Net sales increased by 7.6% to $130.4 million for the
three months ended March 31, 2019 from $121.2 million for the three
months ended March 31, 2018, driven by an increase in average sales
prices of 6.1% as well as a 1.4% increase in soda ash volumes sold. The
increase in sales prices is primarily driven by an increase in domestic
and international pricing during the three months ended March 31, 2019,
partially offset by a shift in our sales mix between domestic and
international sales volumes compared to the first quarter of 2018. Our
volumes sold have increased as a result of higher ore grade which
resulted in higher production during the first quarter of 2019.

Cost of products sold. Cost of products sold, including
depreciation, depletion and amortization expense and freight costs,
increased by 3.5% to $96.5 million for the three months ended March 31,
2019 from $93.2 million for the three months ended March 31, 2018,
primarily due to an increase in freight costs as well as higher variable
production costs for the quarter primarily as a result of increased
sales and production volumes compared to the first quarter of 2018.

Selling, general and administrative expenses. Our selling,
general and administrative expenses increased 15.6% to $7.4 million for
the three months ended March 31, 2019, compared to $6.4 million for the
three months ended March 31, 2018. The primary driver for the increase
in selling, general and administrative costs were higher legal fees
related to our cogeneration project as well as ongoing discussions
related to our exit from ANSAC. In addition, we had approximately $0.3
million in expenses associated with supporting start-up costs related to
our Turkish affiliate's importation of soda ash into the eastern
seaboard. We do not expect these startup costs to continue going
forward. We benefit from these imports through commission payments that
lower Ciner Resource Corporation's costs to service Ciner Wyoming's
sales. Lastly, our sales volumes to ANSAC are increasing and therefore
we are paying a higher proportion of their administration costs.

Operating income. As a result of the foregoing, operating income
increased by 22.7% to $26.5 million for the three months ended March 31,
2019, compared to $21.6 million for the three months ended March 31,
2018.

Net income. As a result of the foregoing, net income increased by
20.6% to $25.2 million for the three months ended March 31, 2019,
compared to $20.9 million for the three months ended March 31, 2018.

CAPEX AND ORE METRICS

The following table summarizes our capital expenditures, on an accrual
basis, ore grade and ore to ash ratio:

 

Three Months Ended
March 31,

(Dollars in millions)

2019   2018
Capital Expenditures
Maintenance $ 1.0 $ 2.8
Expansion 17.6 4.8
Total $ 18.6 $ 7.6
Operating and Other Data:
Ore grade(1) 86.8% 86.0%
Ore to ash ratio(2) 1.52: 1.0 1.55: 1.0
(1)Ore grade is the percentage of raw trona ore that is
recoverable as soda ash free of impurities. A higher ore grade will
produce more soda ash than a lower ore grade.
 
(2)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. In general, a lower ore to
ash ratio results in lower costs and improved efficiency.
 

We are currently planning to increase maintenance capital expenditures
at our Wyoming facility to both adequately maintain the physical assets
and to increase our operating income and operational capacity needs at
the Wyoming facility. The increase in expansion capital expenditures
during the three months ended March 31, 2019 as compared to the same
period ended 2018 was driven by starting phase one of our co-generation
facility. Looking ahead, we are finalizing our investment plans to not
only improve the sustainability of our existing assets, but also to
increase production levels up to approximately 3.5 million tons of soda
ash per year.

FINANCIAL POSITION AND LIQUIDITY

As of March 31, 2019, we had cash and cash equivalents of $17.5 million.
In addition, we have approximately $78.0 million ($225.0 million, less
$147.0 million outstanding) of remaining capacity under our revolving
credit facility. As of March 31, 2019, our leverage and interest
coverage ratios, as calculated per the Ciner Wyoming Credit Facility,
were 1.00: 1.0 and 27.88: 1.0, respectively.

CASH FLOWS AND QUARTERLY CASH DISTRIBUTION

Cash Flows

Cash provided by operating activities decreased to $5.6 million during
the three months ended March 31, 2019 compared to $37.3 million of cash
provided during the three months ended March 31, 2018, primarily driven
by $26.2 million of working capital used in operating activities during
the three months ended March 31, 2019, compared to $9.1 million of
working capital provided by operating activities during the three months
ended March 31, 2018. The $35.3 million increase in working capital used
in operating activities was primarily due to the $22.4 million increase
in due-from affiliates in 2019 compared to a $9.3 million decrease in
2018 primarily related to incremental sales levels to ANSAC and timing
of collections as well as timing of affiliate's funding of pension
benefits.

Cash provided by operating activities during the three months ended
March 31, 2019 were offset by cash used in investing activities of $24.7
million for capital expenditures and cash provided by financing
activities during the three month period of $26.4 million. The cash
provided by financing activities during the three months ended March 31,
2019 was due to distributions paid of $21.1 million and net borrowings
of long-term debt of $48.0 million during the three months ended
March 31, 2019 compared to the $17.5 million in net repayments during
the three months ended March 31, 2018. The increase in net borrowings
for the period is primarily related to funding of capital expenditures.

Quarterly Distribution

On May 10, 2019, the Partnership declared its first quarter 2019
quarterly distribution of $0.340 per unit. The quarterly cash
distribution is payable on May 24, 2019 to unitholders of record on
May 21, 2019. This distribution amount represents an approximate 40.0%
reduction over previously announced cash distributions. While we are
still working on finalizing our capital plans for a new expansion
project that we anticipate will increase our capacity up to
approximately 3.5 million tons of soda ash per year, it is clear such
plans will require capital expenditures materially higher than have been
incurred by Ciner Wyoming in recent years. When considering
infrastructure improvements designed to increase our overall efficiency
plus the expansion, our plans could entail up to $400M of new capital
investment. We are committed to maintaining a disciplined financial
policy with a conservative capital structure, which means we intend to
pay for the investment in part through cash generated by the business
and in part through debt. As a result, we have made the decision
proactively to lower our cash distributions from Wyoming until we have
satisfied at least 50% of the funding for the project, which we expect
will take roughly 10-12 quarters depending upon business performance. We
intend to maintain the distribution at this level until such targets are
met. Afterward, we believe increased production levels from our
operations will materially improve our available cash and allow us to
resume growing our distributions again.

RELATED COMMUNICATIONS

Ciner Resources LP will host a conference call on May 14, 2019 at 8:30
a.m. ET. Participants can listen in by dialing 1-866-550-6980 (Domestic)
or 1-804-977-2644 (International) and referencing confirmation 7079737.
Please log in or dial in at least 10 minutes prior to the start time to
ensure a connection. A telephonic replay of the call will be available
approximately two hours after the call's completion by calling
1-800-585-8367 or 404-537-3406 and referencing confirmation 7079737, and
will remain available for the following seven days. This conference call
will be webcast live and archived for replay on Ciner Resources' website
at www.ciner.us.com.

ABOUT CINER RESOURCES LP

Ciner Resources LP, a master limited partnership, operates the trona ore
mining and soda ash production business of Ciner Wyoming LLC ("Ciner
Wyoming"), one of the largest and lowest cost producers of natural soda
ash in the world, serving a global market from its facility in the Green
River Basin of Wyoming. The facility has been in operation for more than
50 years.

NATURE OF OPERATIONS

Ciner Resources LP owns a controlling interest comprised of a 51%
membership interest in Ciner Wyoming. Natural Resource Partners L.P.
("NRP") owns a non-controlling interest consisting of a 49% membership
interest in Ciner Wyoming.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. Statements other
than statements of historical facts included in this press release that
address activities, events or developments that the Partnership expects,
believes or anticipates will or may occur in the future are
forward-looking statements. These statements may contain words such as
"possible," "believe," "should," "could," "would," "predict," "plan,"
"estimate," "intend," "may," "anticipate," "will," "if," "expect" or
similar expressions. Such statements are based only on the Partnership's
current beliefs, expectations and assumptions regarding the future of
the Partnership's business, projections, anticipated events and trends,
the economy and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to
predict and many of which are outside of the Partnership's control. The
Partnership's actual results and financial condition may differ
materially from those implied or expressed by these forward-looking
statements. Consequently, you are cautioned not to place undue reliance
on any forward-looking statement because no forward-looking statement
can be guaranteed. Factors that could cause the Partnership's actual
results to differ materially from the results contemplated by such
forward-looking statements include: changes in general economic
conditions, the Partnership's ability to meet its expected quarterly
distributions, changes in the Partnership's relationships with its
customers, including American Natural Soda Ash Corporation, the demand
for soda ash and the opportunities for the Partnership to increase its
volume sold, the development of glass and glass making product
alternatives, changes in soda ash prices, operating hazards, unplanned
maintenance outages at the Partnership's production facility,
construction costs or capital expenditures exceeding estimated or
budgeted costs or expenditures, the effects of government regulation,
tax position, and other risks incidental to the mining and processing of
trona ore, and shipment of soda ash, as well as the other factors
discussed in the Partnership's Annual Report on Form 10-K for the year
ended December 31, 2018, and subsequent reports filed with the
Securities and Exchange Commission. All forward-looking statements
included in this press release are expressly qualified in their entirety
by such cautionary statements. Unless required by law, the Partnership
undertakes no duty and does not intend to update the forward-looking
statements made herein to reflect new information or events or
circumstances occurring after this press release. All forward-looking
statements speak only as of the date made.

 

Supplemental Information

CINER RESOURCES LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME

(Unaudited)

   

Three Months Ended
March 31,

(In millions, except per unit data)

2019   2018
Net sales:
Sales—affiliates $ 77.5 $ 65.9
Sales—others 52.9   55.3  
Net sales $ 130.4   $ 121.2  
Operating costs and expenses:
Cost of products sold including freight costs (excludes
depreciation, depletion and amortization expense set forth
separately below)
90.2 86.4
Depreciation, depletion and amortization expense 6.3 6.8
Selling, general and administrative expenses—affiliates 5.5 4.9
Selling, general and administrative expenses—others 1.9   1.5  
Total operating costs and expenses 103.9   99.6  
Operating income 26.5 21.6
Other income (expenses):
Interest income 0.1 0.6
Interest expense, net (1.4 ) (1.3 )
Total other expense, net (1.3 ) (0.7 )
Net income $ 25.2   $ 20.9  
Net income attributable to non-controlling interest 12.9   10.8  
Net income attributable to Ciner Resources LP $ 12.3   $ 10.1  
Other comprehensive loss:
Income/(loss) on derivative financial instruments 2.0   (2.2 )
Comprehensive income 27.2 18.7
Comprehensive income attributable to non-controlling interest 13.9   9.7  
Comprehensive income attributable to Ciner Resources LP $ 13.3   $ 9.0  
 
Net income per limited partner unit:
Net income per limited partner units (basic and diluted) $ 0.61 $ 0.51
Limited partner units outstanding:
Weighted average common units outstanding (basic and diluted) 19.7 19.6
   

CINER RESOURCES LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 
As of

(In millions)

March 31,
2019

  December 31,
2018
 
ASSETS
Current assets:
Cash and cash equivalents $ 17.5 $ 10.2
Accounts receivable—affiliates 92.5 70.1
Accounts receivable, net 41.4 36.9
Inventory 24.8 22.3
Other current assets 1.8   2.0  
Total current assets 178.0 141.5
Property, plant and equipment, net 278.2 266.7
Other non-current assets 26.7   26.4  
Total assets $ 482.9   $ 434.6  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 20.8 17.6
Due to affiliates 4.3 2.6
Accrued expenses 35.6   44.4  
Total current liabilities 60.7 64.6
Long-term debt 147.0 99.0
Other non-current liabilities 9.3   10.9  
Total liabilities 217.0   174.5  
Commitments and contingencies
Equity:
Common unitholders - Public and Ciner Holdings (19.7 units issued
and outstanding at March 31, 2019 and December 31, 2018)
154.5 153.8
General partner unitholders - Ciner Resource Partners LLC (0.4 units
issued and outstanding at March 31, 2019 and December 31, 2018)
3.9 3.9
Accumulated other comprehensive loss (2.8 ) (3.8 )
Partners' capital attributable to Ciner Resources LP 155.6 153.9
Non-controlling interest 110.3   106.2  
Total equity 265.9   260.1  
Total liabilities and partners' equity $ 482.9   $ 434.6  
   

CINER RESOURCES LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Three Months Ended
March 31,

(In millions)

2019   2018
 
Cash flows from operating activities:
Net income $ 25.2 $ 20.9
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation, depletion and amortization expense 6.3 6.8
Equity-based compensation expense 0.4 0.4
Other non-cash items (0.1 ) 0.1
Changes in operating assets and liabilities:
(Increase)/decrease in:
Accounts receivable - affiliates (22.4 ) 9.3
Accounts receivable, net (4.5 ) (3.2 )
Inventory (2.1 ) (3.2 )
Other current and other non-current assets 0.4 0.3
Increase/(decrease) in:
Accounts payable 2.2 5.2
Due to affiliates 1.7 0.9
Accrued expenses and other liabilities (1.5 ) (0.2 )
Net cash provided by operating activities 5.6   37.3  
Cash flows from investing activities:
Capital expenditures (24.7 ) (4.0 )
Net cash used in investing activities (24.7 ) (4.0 )
Cash flows from financing activities:
Borrowings on Ciner Wyoming credit facility 60.0 25.0
Repayments on Ciner Wyoming credit facility (12.0 ) (42.5 )
Common units surrendered for taxes (0.5 ) (0.3 )
Distributions to common unitholders (11.1 ) (11.1 )
Distributions to general partner (0.2 ) (0.2 )
Distributions to non-controlling interest (9.8 ) (12.3 )
Net cash provided by (used in) financing activities 26.4   (41.4 )
Net increase/(decrease) in cash and cash equivalents 7.3 (8.1 )
Cash and cash equivalents at beginning of period 10.2   30.2  
Cash and cash equivalents at end of period $ 17.5   $ 22.1  
 

Non-GAAP Financial Measures

We report our financial results in accordance with generally accepted
accounting principles in the United States ("GAAP"). We also present the
non-GAAP financial measures of:

  • Adjusted EBITDA;
  • Distributable cash flow; and
  • Distribution coverage ratio.

We define Adjusted EBITDA as net income (loss) plus net interest
expense, income tax, depreciation, depletion and amortization,
equity-based compensation expense and certain other expenses that are
non-cash charges or that we consider not to be indicative of ongoing
operations. Distributable cash flow is defined as Adjusted EBITDA less
net cash paid for interest, maintenance capital expenditures and income
taxes, each as attributable to Ciner Resources LP. 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. Distributable cash flow will not reflect changes in
working capital balances. We define distribution coverage ratio as the
ratio of distributable cash flow as of the end of the period to cash
distributions payable with respect to such period.

Adjusted EBITDA, distributable cash flow and distribution coverage ratio
are non-GAAP supplemental financial measures that management and
external users of our consolidated financial statements, such as
industry analysts, investors, lenders and rating agencies, may use to
assess:

  • 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.

We believe that the presentation of Adjusted EBITDA, distributable cash
flow and distribution coverage ratio provide useful information to
investors in assessing our financial condition and results of
operations. The GAAP measures most directly comparable to Adjusted
EBITDA and distributable cash flow are net income and net cash provided
by operating activities. Our non-GAAP financial measures of Adjusted
EBITDA, distributable cash flow and distribution coverage ratio should
not be considered as alternatives to GAAP net income, operating income,
net cash provided by operating activities, or any other measure of
financial performance or liquidity presented in accordance with GAAP.
Adjusted EBITDA and distributable cash flow have important limitations
as analytical tools because they exclude some, but not all items that
affect net income and net cash provided by operating activities.
Investors should not consider Adjusted EBITDA, distributable cash flow
and distribution coverage ratio in isolation or as a substitute for
analysis of our results as reported under GAAP. Because Adjusted EBITDA,
distributable cash flow and distribution coverage ratio may be defined
differently by other companies, including those in our industry, our
definition of Adjusted EBITDA, distributable cash flow and distribution
coverage ratio may not be comparable to similarly titled measures of
other companies, thereby diminishing its utility.

The table below presents a reconciliation of the non-GAAP financial
measures of Adjusted EBITDA and distributable cash flow to the GAAP
financial measures of net income and net cash provided by operating
activities:

   

Three Months Ended
March 31,

(Dollars in millions, except per unit
data)

2019   2018
Reconciliation of Adjusted EBITDA to net income:
Net income $ 25.2 $ 20.9
Add backs:
Depreciation, depletion and amortization expense 6.3 6.8
Interest expense, net 1.3 0.7
Equity-based compensation expenses 0.4   0.4  
Adjusted EBITDA $ 33.2 $ 28.8
Less: Adjusted EBITDA attributable to non-controlling interest 16.5   14.4  
Adjusted EBITDA attributable to Ciner Resources LP $ 16.7   $ 14.4  
 
Reconciliation of distributable cash flow to Adjusted EBITDA
attributable to Ciner Resources LP:
Adjusted EBITDA attributable to Ciner Resources LP $ 16.7 $ 14.4
Less: Cash interest expense, net attributable to Ciner Resources LP 0.6 0.3
Less: Maintenance capital expenditures attributable to Ciner
Resources LP
0.5   0.9  
Distributable cash flow attributable to Ciner Resources LP $ 15.6   $ 13.2  
 
Cash distribution declared per unit $ 0.340 $ 0.567
Total distributions to unitholders and general partner $ 6.8 $ 11.4
Distribution coverage ratio 2.29 1.16
 
Reconciliation of Adjusted EBITDA to net cash from operating
activities:
Net cash provided by operating activities $ 5.6 $ 37.3
Add/(less):
Amortization of long-term loan financing (0.1 )
Net change in working capital 26.2 (9.1 )
Interest expense, net 1.3 0.7
Other non-cash items 0.1    
Adjusted EBITDA $ 33.2 $ 28.8
Less: Adjusted EBITDA attributable to non-controlling interest 16.5   14.4  
Adjusted EBITDA attributable to Ciner Resources LP $ 16.7 $ 14.4
Less: Cash interest expense, net attributable to Ciner Resources LP 0.6 0.3
Less: Maintenance capital expenditures attributable to Ciner
Resources LP
0.5   0.9  
Distributable cash flow attributable to Ciner Resources LP $ 15.6   $ 13.2  
 

The following table presents a reconciliation of the non-GAAP financial
measures of Adjusted EBITDA to GAAP financial measure of net income for
the periods presented:

             

(Dollars in millions, except per unit
data)

Cumulative

Four

Quarters

ended

Q1-2019

Q1-2019 Q4-2018 Q3-2018 Q2-2018 Q1-2018
Reconciliation of Adjusted EBITDA to net income:
Net income $ 107.3 $ 25.2 $ 28.6 $ 19.0 $ 34.5 $ 20.9
Add backs:
Depreciation, depletion and amortization expense 27.9 6.3 7.0 7.3 7.3 6.8
Interest expense, net 3.8 1.3 1.1 1.0 0.4 0.7
Restructuring charges and other, net (included in selling, general
and administrative expenses)
0.1 0.1
Equity-based compensation expense 1.8   0.4   0.3   0.5   0.6   0.4
Adjusted EBITDA 140.9 33.2 37.0 27.8 42.9 28.8
Less: Adjusted EBITDA attributable to non-controlling interest 70.4   16.5   18.5   14.0   21.4   14.4
Adjusted EBITDA attributable to Ciner Resources LP $ 70.5   $ 16.7   $ 18.5   $ 13.8   $ 21.5   $ 14.4
 
Adjusted EBITDA attributable to Ciner Resources LP $ 70.5 $ 16.7 $ 18.5 $ 13.8 $ 21.5 $ 14.4
Less: Cash interest expense, net attributable to Ciner Resources LP 2.5 0.6 0.6 0.8 0.5 0.3
Less: Maintenance capital expenditures attributable to Ciner
Resources LP
7.2   0.5   4.0   1.3   1.4   0.9
Distributable cash flow attributable to Ciner Resources LP $ 60.8   $ 15.6   $ 13.9   $ 11.7   $ 19.6   $ 13.2
 
Cash distribution declared per unit $ 2.041 $ 0.340 $ 0.567 $ 0.567 $ 0.567 $ 0.567
Total distributions to unitholders and general partner $ 41.1 $ 6.8 $ 11.4 $ 11.4 $ 11.5 $ 11.4
Distribution coverage ratio 1.48 2.29 1.22 1.03 1.70 1.16

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