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CVR-Partners Reports 2014 Fourth-Quarter and Full-Year Results And Announces Cash Distribution of 41 Cents
Last update: 19/02/2015 8:30:08 am
SUGAR LAND, Texas, Feb. 19, 2015 /PRNewswire/ -- CVR Partners, LP (NYSE: UAN), a manufacturer of ammonia and urea ammonium nitrate (UAN) solution fertilizer products, today announced fourth quarter 2014 net income of $24.8 million, or 34 cents per fully diluted common unit, on net sales of $74.4 million, compared to net income of $27.9 million, or 38 cents per fully diluted common unit, on net sales of $84.3 million for the fourth quarter a year earlier. Adjusted EBITDA, a non-GAAP measure, was $33.5 million for the fourth quarter of 2014, compared to adjusted EBITDA of $36.6 million for the fourth quarter of 2013.
Full year 2014 net income was $76.1 million, or $1.04 per fully diluted common unit, on net sales of $298.7 million, compared to $118.6 million of net income, or $1.62 per fully diluted common unit, on net sales of $323.7 million for 2013. Adjusted EBITDA for full year 2014 was $110.3 million compared to adjusted EBITDA of $152.8 million for the previous year.
"We are pleased to report solid results across the board for the 2014 fourth quarter, which included some of the highest production and operating rates of the year," said Mark Pytosh, chief executive officer. "Key highlights of the quarter included ammonia production of 105,900 tons and on-stream rates for the gasifier and ammonia synthesis loop of nearly 100 percent and 98 percent, respectively. These results, combined with solid pricing of UAN in the marketplace, allowed us to generate a significant increase in cash distributions for the quarter as compared to the 2014 third quarter.
"We continue to see strong customer demand for UAN for the first six months of 2015," Pytosh said. "Pricing to date has been steady, and we have sold substantially all of our expected UAN production for the 2015 first quarter.
"We are planning a three-week turnaround in the third quarter of 2015," he continued. "Even with this planned downtime, we expect 2015 will be a beneficial year for the partnership and its unitholders."
Operations
For the fourth quarter of 2014, average realized gate prices for UAN and ammonia were $247 per ton and $547 per ton, respectively, compared to $253 per ton and $478 per ton, respectively, for the same period in 2013. For the full year 2014, average realized gate prices for UAN and ammonia were $259 per ton and $518 per ton, respectively, compared to $282 per ton and $643 per ton, respectively, for the full year 2013.
CVR Partners produced 105,900 tons of ammonia and purchased an additional 3,900 tons of ammonia during the fourth quarter of 2014, of which 4,400 net tons were available for sale while the rest was upgraded to 259,600 tons of UAN. In the 2013 fourth quarter, the plant produced 98,900 tons of ammonia and purchased an additional 12,300 tons of ammonia, of which 1,600 net tons were available for sale while the remainder was upgraded to 270,100 tons of UAN.
For full year 2014, CVR Partners produced 388,900 tons of ammonia and purchased an additional 33,600 tons of ammonia, of which 28,300 net tons were available for sale while the rest was upgraded to 963,700 tons of UAN. For full year 2013, the company produced 402,000 tons of ammonia and purchased an additional 17,300 tons of ammonia, of which 37,900 net tons were available for sale while the remainder was upgraded to 930,600 tons of UAN.
On-stream factors during the 2014 fourth quarter were 99.6 percent for the gasifiers, 98.2 percent for the ammonia synthesis loop, and 95.8 percent for the UAN conversion facility. Full year 2014 on-stream factors were 96.8 percent for the gasifiers, 92.6 percent for the ammonia synthesis loop, and 92.0 percent for the UAN conversion facility. Excluding the impact of the shutdown for the waste heat boiler installation, the pressure swing adsorption unit upgrade and the Linde air separation unit maintenance, 2014 full year on-stream factors would have been 98.2 percent for the gasifiers, 94.3 percent for the ammonia synthesis loop, and 93.7 percent for the UAN conversion facility.
Distributions
CVR Partners also announced today a fourth quarter 2014 distribution of 41 cents per common unit. The distribution, as set by the board of CVR GP, LLC, the general partner of CVR Partners, will be paid on March 9, 2015, to unitholders of record on March 2, 2015.
CVR Partners' fourth quarter cash distribution brings the cumulative cash distributions paid or declared for the 2014 full year to $1.39 per common unit.
CVR Partners, LP is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices received for its finished products, maintenance capital expenditures, and cash reserves deemed necessary or appropriate by the board of directors of its general partner.
2014 Fourth Quarter Earnings Conference Call
CVR Partners previously announced that it will host its 2014 fourth quarter Earnings Conference Call for analysts and investors on Thursday, Feb. 19, at 11 a.m. Eastern.
The Earnings Conference Call will be broadcast live over the Internet at www.videonewswire.com/event.asp?id=101502. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8029.
For those unable to listen live, the Webcast will be archived and available for 14 days at http://www.videonewswire.com/event.asp?id=101502. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13600364.
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, CVR Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. For a discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other SEC filings. These risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. CVR Partners disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Partners, LP
Headquartered in Sugar Land, Texas, with manufacturing facilities located in Coffeyville, Kansas, CVR Partners, LP is a Delaware limited partnership focused primarily on the manufacture of nitrogen fertilizers. The CVR Partners nitrogen fertilizer manufacturing facility is the only operation in North America that uses a petroleum coke gasification process to produce nitrogen fertilizer and includes a 1,225 ton-per-day ammonia unit, a 3,000 ton-per-day urea ammonium nitrate unit, and a dual-train gasifier complex having a capacity of 84 million standard cubic feet per day of hydrogen.
CVR Partners, LP
Financial and Operational Data (all information in this
release is unaudited other than the statement of operations
and cash flow data for the year ended December 31, 2013 and
the balance sheet data as of December 31, 2013).
Three Months
Ended December Year Ended
31, December 31,
------------------ -------------------
2014 2013 2014 2013
-------- -------- ------ -----------
(in millions, except units and per
unit data)
Consolidated
Statement of
Operations Data:
Net sales (1) $ 74.4 $ 84.3 $298.7 $ 323.7
Cost of product sold
- Affiliates 2.6 2.4 9.4 10.8
Cost of product sold
- Third parties 12.8 16.5 62.6 47.3
Direct operating
expenses -
Affiliates 0.8 0.8 3.0 4.1
Direct operating
expenses - Third
parties 20.9 22.6 95.9 90.0
Selling, general and
administrative
expenses -
Affiliates 2.9 4.1 13.4 16.0
Selling, general and
administrative
expenses - Third
parties 0.9 1.2 4.3 5.0
Depreciation and
amortization 7.0 7.0 27.3 25.6
-------- -------- ------ -----------
Operating
income 26.5 29.7 82.8 124.9
Interest expense and
other financing
costs (1.7) (1.7) (6.7) (6.3)
Other income, net -- -- -- 0.1
-------- -------- ------ -----------
Income
before
income tax
expense
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February 19, 2015 08:30 ET (13:30 GMT)