Calumet Specialty Products Partners(CLMT)2024-02-22 16:00Sales and Production Performance - Total sales volume for Q4 2023 was 80,234 bpd, an increase of 8.4% from 74,302 bpd in Q4 2022[2] - Total feedstock runs increased to 80,295 bpd in Q4 2023, up from 69,509 bpd in Q4 2022, representing a growth of 15.5%[2] - Specialty Products and Solutions segment production reached 62,333 bpd in Q4 2023, compared to 59,927 bpd in Q4 2022, marking a 4.7% increase[2] - Renewable fuels production was 5,442 bpd in Q4 2023, a significant increase from zero in Q4 2022[2] - Total facility production for the year ended 2023 was 77,296 bpd, slightly down from 79,402 bpd in 2022, reflecting a decrease of 2.6%[2] Financial Performance - Total sales for the year ended December 31, 2023, were 4,686.3 million in 2022[28] - Gross profit for the year ended December 31, 2023, was 351.7 million in 2022, indicating an increase of 28.4%[28] - Net income for Q4 2023 was a loss of 77.1 million in Q4 2022, showing an improvement of 37.5%[28] - The company reported a net income of (173.3) million in 2022[34] - Adjusted EBITDA for the year ended 2023 was 390.0 million in 2022[34] - Distributable Cash Flow for the year ended 2023 was 87.8 million in the previous year[34] Cash Flow and Assets - Current assets decreased to 819.6 million in 2022, a decline of 3.5%[30] - Total liabilities decreased to 3,028.7 million in 2022, a reduction of 1.1%[30] - Cash and cash equivalents significantly decreased to 35.2 million in 2022, a decline of 77.5%[30] - Net cash provided by operating activities for the year ended 2023 was 100.6 million in 2022[32] - Net cash used in investing activities was (536.0) million in the previous year[32] - Net cash provided by financing activities decreased to 348.7 million year-over-year[32] Segment Performance - Performance Brands segment Adjusted gross profit for Q4 2023 was 35.8 million in Q4 2022, reflecting a decrease of 38.5%[28] - Montana/Renewables segment Adjusted gross profit for Q4 2023 was not explicitly stated but follows similar definitions as Performance Brands[22] - Specialty Products and Solutions segment adjusted gross profit was 93.6 million in the same period of 2022, representing a decrease of 25.6%[36] - Performance Brands segment adjusted gross profit increased to 11.9 million in the same period of 2022, reflecting a growth of 38.7%[36] - The Montana/Renewables segment reported a gross loss of 71.6 million in the same period of 2022, indicating a worsening of 13.9%[36] Corporate Strategy and Future Outlook - The company plans to focus on de-leveraging its balance sheet and anticipates capital expenditures related to strategic initiatives[9] - The proposed corporate reorganization to transition to New Calumet is expected to be submitted for unitholder consideration[5] - The company is exploring acquisition opportunities to enhance its market position and operational capabilities[9] - Forward-looking statements indicate expectations for demand growth in specialty products and renewable fuels markets[9] - The company announced a plan to convert its corporate structure from an MLP to a C-Corp by mid-2024[45] Expenses and Financial Obligations - General and administrative expenses for Q4 2023 were 45.0 million in Q4 2022, a decrease of 33.3%[28] - Interest expense for the year ended 2023 was 175.9 million in 2022[34] - The company incurred 22.2 million for the three months ended December 31, 2023, compared to a loss of 200 million aggregate principal amount of 9.25% Senior Secured First Lien Notes due 2029[50] - The company plans to redeem all outstanding 9.25% Senior Secured First Lien Notes due 2024 and $50 million of 11.00% Senior Notes due 2025 using proceeds from the new notes[50]