CVR Partners(US:UAN)2021-05-04 20:07Financial Performance - Net sales for the three months ended March 31, 2021, were $60,921,000, a decrease of 18.9% compared to $75,080,000 for the same period in 2020[22] - The operating loss for the first quarter of 2021 was $14,006,000, compared to an operating loss of $4,972,000 in the first quarter of 2020[22] - Net loss for the three months ended March 31, 2021, was $25,384,000, compared to a net loss of $20,735,000 for the same period in 2020, representing a 22.5% increase in loss[22] - For the three months ended March 31, 2021, the company's operating loss was $14.0 million, and net loss was $25.4 million, representing an increase of $9.0 million and $4.7 million, respectively, compared to the same period in 2020[97] - EBITDA for the quarter ended March 31, 2021, was $4.7 million, down from $10.7 million in the same quarter of 2020[114] - EBITDA for the three months ended March 31, 2021, was $4.674 million, a decrease of 56.1% from $10.652 million in the same period of 2020[116] - Available Cash for distribution was $(9.479) million for Q1 2021, compared to $(5.919) million in Q1 2020[116] Cash and Liquidity - Cash and cash equivalents increased to $52,561,000 as of March 31, 2021, from $30,559,000 at the end of 2020, marking a 72.0% increase[28] - Total liquidity as of March 31, 2021, was $77.2 million, combining cash and cash equivalents with available credit[123] - Cash paid for interest decreased to $45,000 in Q1 2021 from $49,000 in Q1 2020, reflecting a reduction of approximately 8.16%[12] - Net cash flow provided by operating activities for Q1 2021 was $25.551 million, a decrease of 7.8% from $27.707 million in Q1 2020[132] Assets and Liabilities - Total current assets rose to $132,730,000 as of March 31, 2021, compared to $118,214,000 at December 31, 2020, reflecting a 12.3% increase[20] - Total current liabilities increased to $99,828,000 as of March 31, 2021, from $76,341,000 at December 31, 2020, indicating a 30.7% rise[20] - The Partnership's total long-term debt, including current portion, was $637,256,000 as of March 31, 2021, slightly up from $636,182,000 as of December 31, 2020[54] - Total long-term debt as of March 31, 2021, was $634.946 million, slightly increased from $633.942 million as of December 31, 2020[124] - The estimated fair value of long-term debt outstanding was approximately $650.6 million as of March 31, 2021, compared to $645.7 million as of December 31, 2020[54] Inventory and Production - Total inventories increased to $57,184,000 as of March 31, 2021, compared to $42,349,000 as of December 31, 2020, reflecting a growth of 35.0%[40] - Ammonia gross production for the three months ended March 31, 2021, was 188,000 tons, down from 201,000 tons in 2020, while net available for sale was 70,000 tons compared to 78,000 tons in 2020[96] - The company's ammonia utilization rate increased by 3% to 96% for the two years ended March 31, 2021, compared to the previous two-year period[93] Expenses - Share-based compensation expense for the three months ended March 31, 2021, was $3,592,000, compared to a negative expense of $477,000 in the same period of 2020[60] - Direct operating expenses (exclusive of depreciation and amortization) increased to $37.1 million for the three months ended March 31, 2021, compared to $35.1 million in 2020[105] - Cost of materials and other decreased to $17.8 million from $24.0 million for the three months ended March 31, 2021, largely due to reduced sales[104] - Operating lease expense for the three months ended March 31, 2021, was $916,000, down from $1,111,000 in the same period of 2020, a decrease of 17.5%[44] - The Partnership recognized lease expense components totaling $1,099,000 for the three months ended March 31, 2021, compared to $1,215,000 in the same period of 2020, a decrease of 9.5%[44] Market and Industry Outlook - The general business environment is expected to remain volatile in 2021 due to uncertainty around feedstock availability and product demand[80] - The anticipated long-term fundamentals for the U.S. nitrogen fertilizer industry include increasing global population and decreasing arable land per capita[81] - Higher corn and soybean prices have increased expectations for planted corn and soybean acres for spring 2021, leading to higher demand for nitrogen fertilizer[85] - The company anticipates attractive farm economics in 2021 based on expected yields and crop prices, with farmers intending to plant 91.1 million acres of corn and 87.6 million acres of soybeans, marking historical highs[86] Other Information - The Partnership repurchased 24,378 common units at a cost of $529,000 during the first quarter of 2021, with an average price of $21.70 per unit[32] - The Partnership had $12.4 million remaining under the Unit Repurchase Program as of March 31, 2021[32] - The Partnership did not declare any cash distributions for Q1 2021, continuing from no distributions in 2020[130] - Capital expenditures for Q1 2021 were $3.125 million, with estimated full-year expenditures ranging from $22 million to $26 million[127] - The next planned turnaround at the Coffeyville Facility is expected to occur in fall 2021, with an estimated cost of $8 to $10 million[128] - CVR Partners, LP reported a performance-based bonus plan approved on February 19, 2021[144] - The financial information for the quarter ended March 31, 2021, includes unaudited condensed consolidated balance sheets and statements of operations[144] - The company emphasizes that the agreements filed are intended to provide investors with information regarding their respective terms, not factual information about the business[146]