You should read the following management's discussion and analysis of financial
condition and results of operations in conjunction with the historical unaudited
condensed consolidated financial statements, and notes thereto, included
elsewhere in this Report.
Cautionary Statements Regarding Forward-Looking Statements
This Report contains, and our other public filings and oral and written
statements by us and our management may include, statements that constitute
"forward-looking statements" within the meaning of
Forward-looking statements involve risks, uncertainties and assumptions. You are cautioned not to place undue reliance on any forward-looking statements. Actual results may vary materially. You should also understand that it is not possible to predict or identify all such factors and should not consider the following list to be a complete statement of all potential risks and uncertainties. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements and, therefore, affect our ability to distribute cash to unitholders, include: •the market prices for soda ash in the markets in which we sell; •the volume of natural and synthetic soda ash produced worldwide; •
domestic and international demand for soda ash in the flat glass, container glass, detergent, chemical and paper industries in which our customers operate or serve; •the freight costs we pay to transport our soda ash to customers or various delivery points; •the cost of electricity and natural gas used to power our operations; • the amount of royalty payments we are required to pay to our lessors and licensor and the duration of our leases and license; • political disruptions in the markets we or our customers serve, including any changes in trade barriers; •our relationships with our customers and or our sales agent's ability to renew contracts on favorable terms to us; •the creditworthiness of our customers; •a cybersecurity event; •the impact of the recent COVID-19 pandemic, including the impact of government orders on our employees, suppliers, customers and operations; • regulatory action affecting the supply of, or demand for, soda ash, our ability to mine trona ore, our transportation logistics, our operating costs or our operating flexibility; •new or modified statutes, regulations, governmental policies and taxes or their interpretations; and •prevailingU.S. and international economic conditions and foreign exchange rates. In addition, the actual amount of cash we will have available for distribution will depend on other factors, some of which are beyond our control, including, among other things: •the level and timing of capital expenditures we make; • the level of our operating, maintenance and general and administrative expenses, including reimbursements to our general partner for services provided to us;
•the cost of acquisitions, if any; •our debt service requirements and other liabilities; •fluctuations in our working capital needs;
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•our ability to borrow funds and access capital markets; •
restrictions on distributions contained in debt agreements to which we,Ciner Wyoming or our affiliates are a party; •the amount of cash reserves established by our general partner; and •other business risks affecting our cash levels. These factors should not be construed as exhaustive and we urge you to carefully consider the risks described in this Report, our most recent Annual Report on Form 10-K, and subsequent reports filed with theUnited States Securities and Exchange Commission (the "SEC"). You may obtain these reports from theSEC's website at www.sec.gov. All forward-looking statements included in this Report are expressly qualified in their entirety by these cautionary statements. Unless required by law, we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. References References in this Report to the "Partnership," "CINR," "Ciner Resources ," "we," "our," "us," or like terms refer toCiner Resources LP and its subsidiary,Ciner Wyoming LLC , which is the consolidated subsidiary of the Partnership and referred to herein as "Ciner Wyoming ." References to "our general partner" or "Ciner GP" refer toCiner Resource Partners LLC , the general partner ofCiner Resources LP and a direct wholly-owned subsidiary ofCiner Wyoming Holding Co. ("Ciner Holdings "), which is a direct wholly-owned subsidiary ofCiner Resources Corporation ("Ciner Corp ").Ciner Corp is a direct wholly-owned subsidiary ofCiner Enterprises Inc. ("Ciner Enterprises "), which is a direct wholly-owned subsidiary ofWE Soda Ltd. , aU.K. corporation ("WE Soda"). WE Soda is a direct wholly-owned subsidiary ofKEW Soda Ltd. , aU.K. corporation ("KEW Soda"), which is a direct wholly-owned subsidiary of Akkan Enerji ve Madencilik Anonim ?irketi ("Akkan"). Akkan is directly and wholly owned byTurgay Ciner , the Chairman of theCiner Group ("Ciner Group "), a Turkish conglomerate of companies engaged in energy and mining (including soda ash mining), media and shipping markets. All of our soda ash processed is currently sold to various domestic and international customers, includingAmerican Natural Soda Ash Corporation ("ANSAC"), which is an affiliate for export sales. Overview We are aDelaware limited partnership formed byCiner Holdings to own a 51.0% membership interest in, and to operate the trona ore mining and soda ash production business ofCiner Wyoming .Ciner Wyoming is currently one of the world's largest producers of soda ash, serving a global market from its facility in theGreen River Basin ofWyoming . Our facility has been in operation for more than 50 years.NRP Trona LLC , a wholly-owned subsidiary of Natural Resource Partners L.P. ("NRP") currently owns an indirect 49.0% membership interest inCiner Wyoming . Recent Developments COVID-19
Public health epidemics, pandemics or outbreaks of contagious diseases could
adversely impact our business. In
We are closely monitoring the impact of the outbreak of COVID-19 on all aspects of our business, including how it will impact our customers, employees, supply chain, distribution network and cash flows. As we anticipated a ramp up in the spread of COVID-19, we took strong proactive steps to keep the safety of our team and family as the priority. We designed and published a comprehensive plan to help prevent the spread of the virus in our work locations. This plan includes multiple layers of protection for our employees including social distancing, working from home for all employees who can, splitting shifts, increased sanitation, restricted contractor and visitor access, temperature checks on all contractors and third-party vendors, travel restrictions, and daily communication with our teams. We have conducted proactive quarantining and contact tracing from the early days of this event and require self-reporting of any illness. We have also prepared strong contingency plans for all our operations with specific actions based on absentee rates. While these were not necessary to implement, they are continuously refined in case needed. We have started to anticipate a re-opening of society when the virus plateaus and diminishes and we have completed re-entry plans to implement as they become appropriate. We are using data to guide our actions rather than firm dates, and our teams are kept up to date on these plans. Our focus prior to and during this pandemic has been the safety of our teams and this will continue to be our priority as we scale our operations back to normal as the data guides us to do so. We continue to actively monitor and adhere to applicable governmental actions to better ensure the safety of our employees.
We started to see the impact of COVID-19 on our operations towards the end of
the first quarter in the form of slowing global demand and downward pricing
pressure, and while we believe it did not have a material adverse effect on our
first quarter results it will have a negative impact on subsequent quarters. In
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as we utilize the flexibility of our production assets to adjust to the COVID-19 uncertainties and our customers' demands and may see similar declines in the near term. At this time, we are unable to predict the ultimate impact that COVID-19 may have on our business, future results of operations, financial position, cash flows or ability to make distributions to unitholders. The extent to which our operations may be impacted by the COVID-19 pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the outbreak and actions by government authorities to contain the outbreak or treat its impact. Furthermore, the impacts of a potential worsening of global economic conditions and the continued disruptions to and volatility in the financial markets remain unknown. We are actively managing the business to maintain cash flow and we believe we have enough liquidity to meet our anticipated liquidity requirements. As we cannot predict the duration or scope of the COVID-19 pandemic and its impact on our operations, the potential negative financial impact to our results cannot be reasonably estimated but could be material.
Notice to Terminate Membership in ANSAC
OnNovember 9, 2018 ,Ciner Corp delivered a notice to terminate its membership in ANSAC, a cooperative that serves as the primary international distribution channel for us as well as two otherU.S. manufacturers of trona-based soda ash. The effective termination date ofCiner Corp's membership in ANSAC isDecember 31, 2021 (the "ANSAC termination date"). Between now and the ANSAC termination date,Ciner Corp continues to have full ANSAC membership benefits and services. In the event an ANSAC member exits or the ANSAC cooperative is dissolved, the exiting members are obligated for their respective portion of the residual net assets or deficit of the cooperative. Potential liabilities associated with exiting ANSAC are not currently probable or estimable. ANSAC was our largest customer for the periods endedMarch 31, 2020 and 2019, accounting for 47.2% and 59.4%, respectively, of our net sales. Although ANSAC has been our largest customer for the periods endedMarch 31, 2020 and 2019, we anticipate that the impact of such termination on our net sales, net income and liquidity will be limited. We made this determination primarily based upon the belief that we will continue to be one of the lowest cost producers of soda ash in the global market. After the ANSAC termination date, we expectCiner Corp will begin marketing soda ash directly on our behalf into international markets that are currently being served by ANSAC and intends to utilize the distribution network that has already been established by the globalCiner Group . We believe that by combining our volumes withCiner Group's soda ash exports fromTurkey ,Ciner Corp's withdrawal from ANSAC will allow us to leverage the larger, globalCiner Group's soda ash operations which we expect will eventually lower our cost position and improve our ability to optimize our market share both domestically and internationally. Further, being able to work with the globalCiner Group will provide us the opportunity to attract and efficiently serve larger global customers. In addition, the Partnership will need access to an international logistics infrastructure that includes, among other things, a domestic port for export capabilities. These export capabilities are currently being developed byCiner Enterprises and options being evaluated range from continued outsourcing in the near term to developing its own port capabilities in the longer term. The development costs of export capabilities are currently being paid byCiner Enterprises , who is evaluating how these costs might be allocated to the Partnership, which could include ownership by us and repayment for the development costs and related assets or a service agreement model for logistics services which includes reimbursements for development costs. Since a decision to allocate costs to the Partnership has not been made yet and the Partnership is not currently using anyCiner Enterprises export services, none of these development costs have been recorded by the Partnership throughMarch 31, 2020 . Quarterly Distribution OnApril 28, 2020 , the Partnership declared its first quarter 2020 quarterly cash distribution of$0.340 per unit. The quarterly cash distribution is payable onMay 22, 2020 to unitholders of record onMay 8, 2020 . Factors Affecting Our Results of Operations Soda Ash Supply and Demand Our net sales, earnings and cash flow from operations are primarily affected by the global supply of, and demand for, soda ash, which, in turn, directly impacts the prices we and other producers charge for our products. Historically, long term demand for soda ash inthe United States has been driven in large part by general economic growth and activity levels in the end-markets that the glass-making industry serves, such as the automotive and construction industries. Long term soda ash demand in international markets has grown in conjunction with GDP. We expected that over the long term, future global economic growth will positively influence global demand, which will likely result in increased exports, primarily fromthe United States ,Turkey and to a limited extent, fromChina , the largest suppliers of soda ash to international markets. Currently, and in the near term we expect that COVID-19 will have a material impact across a variety of our customers and customer segments which will have a negative impact on demand for our products. InApril 2020 we experienced an approximately 20% greater than normal decline in production as we utilize the flexibility of our production assets to adjust to the COVID-19 uncertainties and our customers' demands and may see similar declines in the near term. The extent and duration to which COVID-19 will impact demand is highly uncertain and cannot be predicted with confidence at this time. 25
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Sales Mix We will adjust our sales mix based upon what is the best margin opportunity for the business between domestic and international. Our operations have been and continue to be sensitive to fluctuations in freight and shipping costs and changes in international prices, which have historically been more volatile than domestic prices. Our gross profit will be impacted by the mix of domestic and international sales as a result of changes in logistics costs and our average selling prices. Post-ANSAC International Export Capabilities OnNovember 9, 2018 ,Ciner Corp delivered a notice to terminate its membership in ANSAC, effective as of the ANSAC termination date. ANSAC is a cooperative that serves as the primary international distribution channel for us as well as two otherU.S. manufacturers of trona-based soda ash. Between now and the ANSAC termination date,Ciner Corp continues to have full ANSAC membership benefits and services. We believe that by combining our volumes withCiner Group's soda ash exports fromTurkey ,Ciner Corp's withdrawal from ANSAC will allow us to leverage the larger, globalCiner Group's soda ash operations which we expect will eventually lower our cost position and improve our ability to optimize our market share both domestically and internationally. After the ANSAC termination date, the Partnership will need access to an international logistics infrastructure that includes, among other things, a domestic port for export capabilities. These export capabilities are currently being developed byCiner Enterprises and options being evaluated range from continued outsourcing in the near term to developing its own port capabilities in the longer term. The development costs of export capabilities are currently being paid byCiner Enterprises , who is evaluating how these costs might be allocated to the Partnership, which could include ownership by us and repayment for the development costs and related assets or a service agreement model for logistics services which includes reimbursements for development costs. Since a decision to allocate costs to the Partnership has not been made yet and the Partnership is not currently using anyCiner Enterprises export services, none of these development costs have been recorded by the Partnership throughMarch 31, 2020 . Energy Costs One of the primary impacts to our profitability is our energy costs. Because we depend upon natural gas and electricity to power our trona ore mining and soda ash processing operations, our net sales, earnings and cash flow from operations are sensitive to changes in the prices we pay for these energy sources. Our cost of energy, particularly natural gas, has been relatively low in recent years, and, despite the historic volatility of natural gas prices, we believe that we will continue to benefit from relatively low prices in the near future. However, we expect to continue to hedge a portion of our forecasted natural gas purchases to mitigate volatility. During 2019 and the first quarter of 2020, we continued construction on a new natural gas-fired turbine co-generation facility that is expected to provide roughly one-third of our electricity and steam demands at our mine in theGreen River Basin . The new co-generation facility began operating inMarch 2020 and will provide us with an improvement of up to approximately$3 million per year in energy costs once fully operational, improving to up to approximately$4 million per year once theGreen River Expansion Project is online. 26
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How We Evaluate Our Business Productivity of Operations Our soda ash production volume is primarily dependent on the following three factors: (1) operating rate, (2) quality of our mined trona ore and (3) recovery rates. Operating rate is a measure of utilization of the effective production capacity of our facility and is determined in large part by productivity rates and mechanical on-stream times, which is the percentage of actual run times over the total time scheduled. We implement two planned outages of our mining and surface operations each year, typically in the second and third quarters. During these outages, which are scheduled to last approximately one week each, we repair and replace equipment and parts. Periodically, we may experience minor unplanned outages or unplanned extensions to planned outages caused by various factors, including equipment failures, power outages or service interruptions. The quality of our mine ore is determined by measuring the trona ore recovered as a percentage of the deposit, which includes both trona ore and insolubles. Plant recovery rates are generally determined by calculating the soda ash produced divided by the sum of the soda ash produced plus soda ash that is not recovered from the process. All of these factors determine the amount of trona ore we require to produce one short ton of soda ash and liquor, which we refer to as our "ore to ash ratio." Our ore to ash ratio was 1.53: 1.0 and 1.52: 1.0 for the three months endedMarch 31, 2020 and 2019, respectively. Freight and Logistics The soda ash industry is logistics intensive and involves careful management of freight and logistics costs. These freight costs make up a large portion of the total delivered cost to the customer. Delivered costs to most domestic customers and ANSAC primarily relates to rail freight services. Some domestic customers may elect to arrange their own freight and logistic services. Delivered costs to non-ANSAC international customers primarily consists of both rail freight services to the port of embarkation and the additional ocean freight to the port of disembarkation. All of our soda ash is shipped by rail or truck from ourGreen River Basin operations.Union Pacific Railroad Corporation ("Union Pacific") is our largest provider of domestic rail freight services. Our plant receives rail service exclusively from Union Pacific and shipments by rail accounted for 88.7% and 90.5% of our total freight costs during the three months endedMarch 31, 2020 and 2019, respectively. The increase in the percentage of freight that is related to Union Pacific is due primarily to our increased usage of Union Pacific to accommodate changes in sales mix between domestic and international and their respective delivery locations. Our agreement with Union Pacific expires onDecember 31, 2021 . If we do not ship at least a significant portion of our soda ash production on the Union Pacific rail line during a twelve-month period, we must pay Union Pacific a shortfall payment under the terms of our transportation agreement. For each of the three months endedMarch 31, 2020 and 2019, we did not make any shortfall payments and do not expect to make any payments in the future.Net Sales Net sales include the amounts we earn on sales of soda ash. We recognize revenue from our sales when control of goods transfers to the customer. Control typically transfers when goods are delivered to the carrier for shipment, which is the point at which the customer has the ability to direct the use of and obtain substantially all remaining benefits from the asset. The time at which delivery and transfer of title occurs, for the majority of our contracts with customers, is the point when the product leaves our facility, thereby rendering our performance obligation fulfilled. Substantially all of our sales are derived from sales of soda ash, which we sell through our exclusive sales agent,Ciner Corp. A small amount of our sales is derived from sales of production purge, which is a by-product liquor solution containing soda ash that is produced during the processing of trona ore. For the purposes of our discussion below, we include these transactions in domestic sales of soda ash and in the volume of domestic soda ash sold. Sales prices for sales through ANSAC include the cost of freight to the ports of embarkation for overseas export or toLaredo, Texas for sales toMexico . Sales prices for other international sales may include the cost of rail freight to the port of embarkation, the cost of ocean freight to the port of disembarkation for import by the customer and the cost of inland freight required for delivery to the customer. Cost of products sold Expenses relating to employee compensation, energy, including natural gas and electricity, royalties and maintenance materials constitute the greatest components of cost of products sold. These costs generally increase in line with increases in sales volume. Employee Compensation. See Part I, Item 1. Financial Statements - Note 6, "Employee Compensation" for information on the various benefit plans offered and administered byCiner Corp. Energy. A major item in our cost of products sold is energy, comprised primarily of natural gas and electricity. We primarily use natural gas to fuel our above-ground processing operations, including the heating of calciners, and we use electricity to power our underground mining operations, including our continuous mining machines, or continuous miners, and shuttle cars. The monthly Northwest Pipeline Rocky Mountain Index natural gas settlement prices, over the past five years, have ranged between$1.30 and$4.22 per MMBtu. The average monthly Northwest Pipeline Rocky Mountain Index natural gas settlement prices for the three months 27
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ended
The royalty rates we pay to our lessors and licensor may change upon our renewal or renegotiation of such leases and license. OnJune 28, 2018 ,Ciner Wyoming amended its License Agreement, datedJuly 18, 1961 (the "License Agreement"), with RSRC to, among other things, (i) extend the term of the License Agreement toJuly 18, 2061 and for so long thereafter asCiner Wyoming continuously conducts operations to mine and remove sodium minerals from the licensed premises in commercial quantities; and (ii) set the production royalty rate for each sale of sodium mineral products produced from ore extracted from the licensed premises at eight percent (8%) of the net sales of such sodium mineral products. Any increase in the royalty rates we are required to pay to our lessors and licensor through renewal or renegotiation of leases or license, or any failure by us to renew any of our leases and license, could have a material adverse impact on our results of operations, financial condition or liquidity, and, therefore, may affect our ability to distribute cash to unitholders. Selling, general and administrative expenses Selling, general and administrative expenses incurred by our affiliates on our behalf are allocated to us based on the time the employees of those companies spend on our business and the actual direct costs they incur on our behalf. Selling, general and administrative expenses incurred by ANSAC on our behalf are allocated to us based on the proportion of ANSAC's total volumes sold for a given period attributable to the soda ash sold by us to ANSAC. OnOctober 23, 2015 , the Partnership entered into a Services Agreement (the "Services Agreement"), with our general partner andCiner Corp. Pursuant to the Services Agreement,Ciner Corp has agreed to provide the Partnership with certain corporate, selling, marketing, and general and administrative services, in return for which the Partnership has agreed to payCiner Corp an annual management fee, subject to quarterly adjustments, and reimburseCiner Corp for certain third-party costs incurred in connection with providing such services. In addition, under the joint venture agreement governingCiner Wyoming ,Ciner Wyoming reimburses us for employees who operate our assets and for support provided toCiner Wyoming .Ciner Group also owns and operates port facilities inTurkey , and, since 2017, one of its other North American subsidiaries has an arrangement to exclusively import soda ash into a port on the east coast of theU.S. Ciner Corp , which is the exclusive sales agent for the Partnership, will serve as the exclusive sales agent of that material and receive a commission on those sales. We believe by having access to that material,Ciner Corp will be able to offer its customers an improved level of service, greater certainty of supply to the Partnership's end customers, and over time lower our overall costs to serve and which are subsequently charged to the Partnership. 28
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First Quarter 2020 Financial Highlights: • Net sales of$114.4 million decreased 12.3% from the prior-year first quarter. • Soda ash volume produced increased 0.2% from the prior-year first quarter, but soda ash volume sold decreased 2.0% from the prior-year first quarter. • Net income of$14.2 million decreased$11.0 million from the prior-year first quarter. • Adjusted EBITDA of$22.4 million decreased 32.5% from the prior-year first quarter. • Earnings per unit of$0.34 for the quarter decreased 44.3% over the prior-year first quarter of$0.61 . • Net cash provided by operating activities of$16.7 million increased 198.2% over prior-year first quarter. • Distributable cash flow of$9.0 million decreased 42.3% compared to the prior-year first quarter. • The distribution coverage ratio was 1.32 and 2.29 for the three months endedMarch 31, 2020 and 2019, respectively. 29
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Results of Operations A discussion and analysis of the factors contributing to our results of operations is presented below for the periods and as of the dates indicated. The financial statements, together with the following information, are intended to provide investors with a reasonable basis for assessing our historical operations, but should not serve as the only criteria for predicting our future performance. The following table sets forth our results of operations for the three months endedMarch 31, 2020 and 2019: Three Months Ended March 31, (In millions, except for operating and other data section) 2020 2019 Net sales: Sales-affiliates$ 54.0 $ 77.5 Sales-others 60.4 52.9 Net sales$ 114.4 $ 130.4 Operating costs and expenses: Cost of products sold 86.6 90.2 Depreciation, depletion and amortization expense 6.5 6.3 Selling, general and administrative expenses-affiliates 4.1 5.5 Selling, general and administrative expenses-others 1.7 1.9 Total operating costs and expenses 98.9 103.9 Operating income 15.5 26.5 Interest income - 0.1 Interest expense (1.3 ) (1.4 ) Total other expense, net (1.3 ) (1.3 ) Net income 14.2 25.2 Net income attributable to non-controlling interest 7.5 12.9 Net income attributable to Ciner Resources LP$ 6.7 $ 12.3 Operating and Other Data: Trona ore consumed (thousands of short tons) 1,042.7 1,033.3 Ore to ash ratio(1) 1.53: 1.0 1.52: 1.0 Ore grade(2) 86.7 % 86.8 % Soda ash volume produced (thousands of short tons) 680.2 678.8 Soda ash volume sold (thousands of short tons) 663.7 677.1 Adjusted EBITDA(3)$ 22.4 $ 33.2 (1) Ore to ash ratio expresses the number of short tons of trona ore needed to produce one short ton of soda ash and liquor and includes our deca rehydration recovery process. In general, a lower ore to ash ratio results in lower costs and improved efficiency. (2) 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. (3) For a discussion of the non-GAAP financial measure Adjusted EBITDA, please read "Non-GAAP Financial Measures" of this Management's Discussion and Analysis. 30
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Analysis of Results of Operations 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, (Dollars in millions, except for average sales Percent price data) 2020 2019 Increase/(Decrease) Net sales: Domestic$ 55.2 $ 52.9 4.3% International 59.2 77.5 (23.6)% Total net sales$ 114.4 $ 130.4 (12.3)% Sales volumes (thousands of short tons): Domestic 237.4 224.4 5.8% International 426.3 452.7 (5.8)% Total soda ash volume sold 663.7 677.1 (2.0)% Average sales price (per short ton) (1) Domestic$ 232.52 $ 235.74 (1.4)% International$ 138.87 $ 171.20 (18.9)% Average$ 172.37 $ 192.59 (10.5)% Percent of net sales: Domestic net sales 48.3 % 40.6 % 19.0% International net sales 51.7 % 59.4 % (13.0)% Total percent of net sales 100.0 % 100.0 % Percent of sales volumes: Domestic volume 35.8 % 33.1 % 8.2% International volume 64.2 % 66.9 % (4.0)% Total percent of volume sold 100.0 % 100.0 %
(1) Average sales price per short ton is computed as net sales divided by volumes sold.
Three Months EndedMarch 31, 2020 compared to Three Months EndedMarch 31, 2019 Consolidated Results Net sales. Net sales decreased by 12.3% to$114.4 million for the three months endedMarch 31, 2020 from$130.4 million for the three months endedMarch 31, 2019 , primarily driven by a decrease in soda ash volumes sold of 2.0% due to lower international demand for three months endedMarch 31, 2020 , as compared to the three months endedMarch 31, 2019 . Also contributing to the decrease in net sales was a decline in international pricing for three months endedMarch 31, 2020 continuing the trend that began in the fourth quarter of 2019. Cost of products sold. Cost of products sold, including depreciation, depletion and amortization expense and freight costs, decreased by 3.5% to$93.1 million for the three months endedMarch 31, 2020 from$96.5 million for the three months endedMarch 31, 2019 , primarily due to lower variable costs for the quarter as a result of decreased overall sales volumes over the same period. Selling, general and administrative expenses. Our selling, general and administrative expenses decreased 21.6% to$5.8 million for the three months endedMarch 31, 2020 , compared to$7.4 million for the three months endedMarch 31, 2019 . The decrease was driven primarily by decreased employee benefit expenses, as well as lower professional fees and contracted services incurred over the same period. In addition, the three months endedMarch 31, 2019 included approximately$0.3 million of non-recurring expenses associated with supporting start-up costs related to our Turkish affiliates importation of soda ash into the eastern seaboard. Operating income. As a result of the foregoing, operating income decreased by 41.5% to$15.5 million for the three months endedMarch 31, 2020 from$26.5 million for the three months endedMarch 31, 2019 . Net income. As a result of the foregoing, net income decreased by 43.7% to$14.2 million for the three months endedMarch 31, 2020 , from$25.2 million for the three months endedMarch 31, 2019 . 31
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Liquidity and Capital Resources Sources of liquidity include cash generated from operations and borrowings under credit facilities and capital calls from partners. We use cash and require liquidity primarily to finance and maintain our operations, fund capital expenditures for our property, plant and equipment, make cash distributions to holders of our partnership interests, pay the expenses of our general partner and satisfy obligations arising from our indebtedness. Our ability to meet these liquidity requirements will depend primarily on our ability to generate cash flow from operations. Our sources of liquidity include: • cash generated from our operations of which we had cash on hand of$51.4 million atMarch 31, 2020 ; • Approximately$78.5 million ($225.0 million , less$146.5 million outstanding), is available for borrowing and undrawn under the Ciner Wyoming Credit Facility (as defined herein) as ofMarch 31, 2020 (during the three months endedMarch 31, 2020 , we made repayments on the Ciner Wyoming Credit Facility of$59.5 million , offset by borrowings of$76.5 million ; and •$10.0 million is available for borrowing under theCiner Resources Credit Facility (as defined herein) as ofMarch 31, 2020 . We expect our ongoing working capital and capital expenditures to be funded by cash generated from operations and borrowings under the Ciner Wyoming Credit Facility and the Ciner Wyoming Equipment Financing Arrangement (as defined herein). We are increasing maintenance and expansion capital expenditures at ourWyoming facility to both adequately maintain the physical assets and to increase our operating income and operational capacity at theWyoming facility. The amount, timing and classification of any such capital expenditures could affect the amount of cash that is available to be distributed to our unitholders. In addition, we are subject to business and operational risks that could adversely affect our cash flow, access to borrowings under the Ciner Resources Credit Facility and the Ciner Wyoming Credit Facility, and ability to make monthly installment payments under the Ciner Wyoming Equipment Financing Arrangement. Our ability to satisfy debt service obligations, to fund planned capital expenditures and to make acquisitions will depend upon our future operating performance, which, in turn, will be affected by prevailing economic conditions, our business and other factors, some of which are beyond our control. We intend to pay a quarterly distribution to unitholders of record, to the extent we have sufficient cash from our operations after establishment of cash reserves, funding of any acquisitions and expansion capital expenditures and payment of fees and expenses, including payments to our general partner and its affiliates. While we are actively managing the business to maintain cash flow, we cannot predict the duration or scope of the COVID-19 pandemic and its impact on our ability to make distributions to unitholders. See Part I, Item 2, Overview, "Recent Developments", for more information. During the three months endedMarch 31, 2020 we made net borrowings of$17.0 million under the Ciner Wyoming Credit Facility and onMarch 26, 2020 we borrowed$30.0 million under the Wyoming Equipment Financing Arrangement to continue with our growth strategies but also provide additional financial flexibility in the upcoming quarters in light of the current uncertainty in the financial markets caused by COVID-19. Capital Requirements Working capital is the amount by which current assets exceed current liabilities. Our working capital requirements have been, and will continue to be, primarily driven by changes in accounts receivable and accounts payable, which generally fluctuate with changes in volumes, contract terms and market prices of soda ash in the normal course of our business. Other factors impacting changes in accounts receivable and accounts payable could include the timing of collections from customers and payments to suppliers, as well as the level of spending for maintenance and growth capital expenditures. A material adverse change in operations or available financing under the Ciner Resources Credit Facility and the Ciner Wyoming Credit Facility could impact our ability to fund our requirements for liquidity and capital resources. Historically, we have not made working capital borrowings to finance our operations. As ofMarch 31, 2020 , we had a working capital balance of$156.2 million as compared to a working capital balance of$116.0 million as ofDecember 31, 2019 . The primary driver for the increase in our working capital balance was an increase in cash and cash equivalents primarily related to borrowings under the Ciner Wyoming Credit Facility and Ciner Wyoming Equipment Financing Arrangement during the three months endedMarch 31, 2020 . Financial Assurance Regulatory Updates by theWyoming Department of Environmental Quality
We have a self-bond agreement (the "Self-Bond Agreement") with the
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availability, costs and terms of such surety bond. As of the date of this
Report, we anticipate that any such impact on our net income and liquidity will
be limited. The amount of such surety guarantee is subject to change upon
periodic re-evaluation by the WDEQ's Land Quality Division. For a discussion of
risks in connection with future legislation relating to such financial
assurances that could affect our business, financial condition and liquidity,
please read Item IA, "Risk Factors--Risks Inherent in our Business and
Industry--Our inability to acquire, maintain or renew financial assurances
related to the reclamation and restoration of mining property could have a
material adverse effect on our business, financial condition and results of
operations," in our Annual Report on Form 10-K for the year ended
Capital Expenditures Our operations require investments to expand, upgrade or enhance existing operations and to meet evolving environmental and safety regulations. We distinguish between maintenance and expansion capital expenditures. Maintenance capital expenditures (including expenditures for the construction or development of new capital assets or the replacement, improvement or expansion of existing capital assets) are made to maintain, over the long term, our operating income or operating capacity. Examples of maintenance capital expenditures are expenditures to upgrade and replace mining equipment and to address equipment integrity, safety and environmental laws and regulations. Our maintenance capital expenditures do not include actual or estimated capital expenditures for replacement of our trona reserves. Expansion capital expenditures are incurred for acquisitions or capital improvements made to increase, over the long term, our operating income or operating capacity. Examples of expansion capital expenditures include the acquisition and/or construction of complementary assets to grow our business and to expand existing facilities, such as projects that increase production from existing facilities or reduce costs, to the extent such capital expenditures are expected to increase our long-term operating capacity or operating income. The table below summarizes our capital expenditures, on an accrual basis: Three Months Ended March 31, (In millions) 2020 2019 Capital Expenditures: Maintenance$ 6.5 $ 1.0 Expansion 5.1 17.6 Total$ 11.6 $ 18.6 During the three months endedMarch 31, 2020 , we continued the increase of maintenance capital expenditures that began in the second half of 2019 at ourWyoming facility to both adequately maintain the facility's physical assets and to improve its operational reliability. The decrease expansion capital expenditures during the three months endedMarch 31, 2020 were because of the completion our new co-generation facility, which began operating inMarch 2020 , that was in phase one of construction during the three months endedMarch 31, 2019 .Green River Expansion Project We continue to develop plans and execute the early phases for a potential newGreen River Expansion Project that we believe will increase production levels up to approximately 3.5 million tons of soda ash per year. We have recently conducted the initial basic design and are currently evaluating and pursuing the related permits and detailed cost analysis pursuant to the basic design. This project will require capital expenditures materially higher than have been recently incurred byCiner Wyoming . To maintain a disciplined financial policy and what we believe is a conservative capital structure, we intend to pay for the investment in part through cash generated by the business and in part through debt. When considering the significant investment required by this expansion and the infrastructure improvements designed to increase our overall efficiency, we lowered our quarterly cash distributions beginning inMay 2019 by approximately 40% from previously announced cash distributions to satisfy approximately 50% of the funding for the project, which we believe will continue for the next several quarters depending upon business performance. 33
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Cash Flows Discussion The following is a summary of cash provided by or used in each of the indicated types of activities:
Three Months Ended March 31, (In millions) 2020 2019 Percent Increase/(Decrease) Cash provided by (used in): Operating activities$ 16.7 $ 5.6 198.2 % Investing activities$ (12.9 ) $ (24.7 ) (47.8 )% Financing activities$ 32.7 $ 26.4 23.9 % Operating Activities Our operating activities during the three months endedMarch 31, 2020 provided cash of$16.7 million , an increase of 198.2% from the$5.6 million cash provided during the three months endedMarch 31, 2019 , primarily as a result of the following: •$4.4 million of working capital used in operating activities during the three months endedMarch 31, 2020 , compared to$26.2 million of working capital used in operating activities during the three months endedMarch 31, 2019 . The$21.8 million decrease in working capital used in operating activities was primarily due to the$8.8 million decrease in due from affiliates for the three months endedMarch 31, 2020 compared to a$22.4 million increase for the three months endedMarch 31, 2019 primarily related to the timing of collections and lower sales to ANSAC; and • a decrease of 43.7% in net income of$11.0 million during the three months endedMarch 31, 2020 , compared to$25.2 million for the prior-year period. Investing Activities We used cash flows of$12.9 million in investing activities during the three months endedMarch 31, 2020 , compared to$24.7 million during the three months endedMarch 31, 2019 , for capital projects as described in "Capital Expenditures" above. Financing Activities Cash provided by financing activities of$32.7 million during the three months endedMarch 31, 2020 increased by 23.9% over the prior-year cash provided by financing activities, largely due to distributions paid during the three months endedMarch 31, 2020 of$13.9 million being down$7.2 million or 34.1% compared to the three months endedMarch 31, 2019 . Borrowings under the Ciner Wyoming Credit Facility were at variable interest rates. As of and for the quarter ended March 31, (Dollars in millions) 2020 Short-term borrowings from banks: Outstanding amount at period end $ 146.5 Weighted average interest rate at period end(1) 2.97 % Average daily amount outstanding for the period $ 131.7 Weighted average daily interest rate for the period(1) 3.50 % Maximum month-end amount outstanding during the period $ 146.5
(1) Weighted average interest rates set forth in the table above include the
impacts of our interest rate swap contracts designated as cash flow hedges. As
of
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Debt
See Part I, Item 1, Financial Statements - Note 4, "Debt" for table disclosure of our long-term debt outstanding as ofMarch 31, 2020 andDecember 31, 2019 . Ciner Wyoming Equipment Financing Arrangement OnMarch 26, 2020 ,Ciner Wyoming and the consolidated subsidiary ofCiner Resources LP , andBanc of America Leasing & Capital, LLC , as lender (the "Lender"), entered into an equipment financing arrangement (the "Ciner Wyoming Equipment Financing Arrangement") including aMaster Loan and Security Agreement, dated as ofMarch 25, 2020 (the "Master Agreement") and an Equipment Security Note Number 001, dated as ofMarch 25, 2020 (the "Initial Secured Note"), which provides the terms and conditions for the debt financing of certain equipment related toCiner Wyoming's new natural gas-fired turbine co-generation facility that became operational inMarch 2020 . Each equipment financing under the Ciner Wyoming Equipment Financing Arrangement will be evidenced by the execution of one or more equipment notes (including the Initial Secured Note) that incorporate the terms and conditions of the Master Agreement (each, an "Equipment Note"). In order to secure the payment and performance ofCiner Wyoming's obligations under the Ciner Wyoming Equipment Financing Arrangement and other debt obligations owed byCiner Wyoming to Lender,Ciner Wyoming granted to the Lender a continuing security interest in all ofCiner Wyoming's right, title and interest in and to the Equipment (as defined in the Master Agreement) and certain related collateral. The Ciner Wyoming Equipment Financing Arrangement (1) incorporates all covenants ofCiner Wyoming that are based upon a specified level or ratio relating to assets, liabilities, indebtedness, rentals, net worth, cash flow, earnings, profitability, or any other accounting-based measurement or test, now or hereafter existing, in the Ciner Wyoming Credit Facility, or in any applicable replacement credit facility accepted in writing by Lender and (2) includes customary events of default subject to applicable grace periods, including, among others, (i) payment defaults, (ii) certain mergers or changes in control ofCiner Wyoming , (iii) cross defaults with certain other indebtedness (a) to which the Lender is a party or (b) to third parties in excess of$10 million , and (iv) the commencement of certain insolvency proceedings or related events identified in the Master Agreement. Upon the occurrence of an event of default, in its discretion, the Lender may exercise certain remedies, including, among others, the ability to accelerate the maturity of any Equipment Note such that all amounts thereunder will become immediately due and payable, to take possession of the Equipment identified in any Equipment Note, and to chargeCiner Wyoming a default rate of interest on all then outstanding or thereafter incurred obligations under the Ciner Wyoming Equipment Financing Arrangement. Among other things, the Initial Secured Note: • has a principal amount of$30,000,000 ; • bears interest at a fixed rate of 2.4790% per annum until the principal amount of the Initial Secured Note is paid in full;
• has a maturity date of
• shall be payable by
installments of principal and interest commencing onApril 26, 2020 and continuing thereafter until the maturity date of the Initial Secured Note, which shall be in the amount of approximately$307,000 for the first 95 monthly installments and approximately$4,307,000 for the final monthly installment; and
• entitles
outstanding principal balance of the Initial Secured Note (together with all accrued interest and other charges and amounts owed thereunder) at any time after one (1) year from the date of the Initial Secured Note, subject toCiner Wyoming paying to Lender an additional prepayment amount determined by the amount of principal balance prepaid and the date such prepayment is made.
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Ciner Wyoming Credit Facility
On
The Ciner Wyoming Credit Facility is a
The Ciner Wyoming Credit Facility contains various covenants and restrictive
provisions that limit (subject to certain exceptions)
•make distributions on or redeem or repurchase units; •incur or guarantee additional debt; •make certain investments and acquisitions; •incur certain liens or permit them to exist; •enter into certain types of transactions with affiliates ofCiner Wyoming ; •merge or consolidate with another company; and •transfer, sell or otherwise dispose of assets.
The Ciner Wyoming Credit Facility also requires quarterly maintenance of a consolidated leverage ratio (as defined in the Ciner Wyoming Credit Facility) of not more than 3.00 to 1.00 and a consolidated interest coverage ratio (as defined in the Ciner Wyoming Credit Facility) of not less than 3.00 to 1.00.
The Ciner Wyoming Credit Facility contains events of default customary for
transactions of this nature, including (i) failure to make payments required
under the Ciner Wyoming Credit Facility, (ii) events of default resulting from
failure to comply with covenants and financial ratios in the Ciner Wyoming
Credit Facility, (iii) the occurrence of a change of control, (iv) the
institution of insolvency or similar proceedings against
Under the Ciner Wyoming Credit Facility, a change of control is triggered if
Loans under the Ciner Wyoming Credit Facility bear interest at
•a Base Rate, which equals the highest of (i) the federal funds rate in effect on such day plus 0.50%, (ii) the administrative agent's prime rate in effect on such day or (iii) one-month LIBOR plus 1.0%, in each case, plus an applicable margin; or •the Eurodollar Rate plus an applicable margin; provided, that with respect to an applicable loan, if the Eurodollar Rate cannot be determined by the administrative agent or if the administrative agent or certain lenders determined that the
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Eurodollar Rate does not adequately and fairly reflect the cost to such lenders
of funding an applicable loan, the administrative agent in consultation with
The unused portion of the Ciner Wyoming Credit Facility is subject to an unused
line fee ranging from 0.225% to 0.300% per annum based on
At
OnAugust 1, 2017 , the Partnership entered into a Credit Agreement (as amended, the "Ciner Resources Credit Facility") with each of the lenders listed on the respective signature pages thereof andPNC Bank , as administrative agent, swing line lender and an L/C issuer. OnFebruary 28, 2020 , the Ciner Resources Credit Facility was amended to, among other things, increase flexibility for debt financing to be incurred byCiner Wyoming in connection with its new natural gas-fired turbine co-generation facility, including, among other things (i) increasing the basket for purchase money indebtedness permitted under the Ciner Resources Credit Facility from$5.0 million to$30.0 million ; (ii) adding procedures under the Ciner Resources Credit Facility for transition to a benchmark other than the Eurodollar Rate to determine the applicable interest rate (including reference to the Secured Overnight Financing Rate published by theFederal Reserve Bank of New York ), with provisions applying to that alternate benchmark; and (iii) adding customary new provisions relating to qualified financial contracts, sanctions and anti-money laundering rules and laws. The Ciner Resources Credit Facility is a$10.0 million senior secured revolving credit facility with a syndicate of lenders, which will mature on the fifth anniversary of the closing date of such credit facility. TheCiner Resources Credit Facility provides for revolving loans to be available to fund distributions on the Partnership's units and working capital requirements and capital expenditures, to consummate permitted acquisitions and for all other lawful partnership purposes. The Ciner Resources Credit Facility includes a sublimit up to$5.0 million for same-day swing line advances and a sublimit up to$5.0 million for letters of credit. The Partnership's obligations under the Ciner Resources Credit Facility are guaranteed by each of the Partnership's material domestic subsidiaries other thanCiner Wyoming . In addition, the Partnership's obligations under the Ciner Resources Credit Facility are secured by a pledge of substantially all of the Partnership's assets (subject to certain exceptions), including the membership interests held inCiner Wyoming by the Partnership. The Ciner Resources Credit Facility contains various covenants and restrictive provisions that limit (subject to certain exceptions) the Partnership's ability to (and the ability of the Partnership's subsidiaries, including without limitation,Ciner Wyoming to): • make distributions on or redeem or repurchase units; • incur or guarantee additional debt; • make certain investments and acquisitions; • incur certain liens or permit them to exist; • enter into certain types of transactions with affiliates; • merge or consolidate with another company; and • transfer, sell or otherwise dispose of assets.
The Ciner Resources Credit Facility also requires quarterly maintenance of a consolidated leverage ratio (as defined in the Ciner Resources Credit Facility) of not more than 3.00 to 1.00 and a consolidated interest coverage ratio (as defined in the Ciner Resources Credit Facility) of not less than 3.00 to 1.00.
In addition, the Ciner Resources Credit Facility contains events of default customary for transactions of this nature, including (i) failure to make payments required under the Ciner Resources Credit Facility, (ii) events of default resulting from failure to comply with covenants and financial ratios, (iii) the occurrence of a change of control, (iv) the institution of insolvency or similar proceedings against the Partnership or its material subsidiaries and (v) the occurrence of a default under any other material indebtedness the Partnership (or any of its subsidiaries) may have, including the Ciner Wyoming Credit Facility. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the Ciner Resources Credit Facility, the lenders may terminate all outstanding commitments under the Ciner Resources Credit Facility and may declare any outstanding principal of the Ciner Resources Credit Facility debt, together with accrued and unpaid interest, to be immediately due and payable.
Under the Ciner Resources Credit Facility, a change of control is triggered if
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Loans under the Ciner Resources Credit Facility bear interest at our option at either:
•a Base Rate, which equals the highest of (i) the federal funds rate in effect
on such day plus 0.50%, (ii) the administrative agent's prime rate in effect on
such day or (iii) one-month LIBOR plus 1.0%, in each case, plus an applicable
margin; or
•Eurodollar Rate plus an applicable margin; provided, that with respect to an
applicable loan, if the Eurodollar Rate cannot be determined by the
administrative agent or if the administrative agent or certain lenders
determined that the Eurodollar Rate does not adequately and fairly reflect the
cost to such lenders of funding an applicable loan, the administrative agent in
consultation with
The unused portion of the Ciner Resources Credit Facility is subject to an unused line fee ranging from 0.225% to 0.300% based on our then current consolidated leverage ratio.
At
WE Soda and Ciner Enterprises Facilities Agreement
On
Even though neither the Partnership nor
Contractual Obligations
During the three months endedMarch 31, 2020 , there were no material changes with respect to the contractual obligations disclosed in our Annual Report on Form 10-K for the year endedDecember 31, 2019 , filed with theSEC onMarch 9, 2020 (the "2019 Annual Report") other than as described below. • As discussed above, onMarch 26, 2020 , we entered into theCiner Wyoming Equipment Financing Arrangement; • AtMarch 31, 2020 , borrowings under the Ciner Wyoming Credit Facility increased by$17.0 million fromDecember 31, 2019 . The increase in borrowings was partially offset by a decrease in the interest rate on the Ciner Wyoming Credit Facility.
As a result of the above, our long-term debt and related interest obligations
outstanding increased by
Off-Balance Sheet Arrangements See Part I, Item 1, Financial Statements - Note 9, Commitments and Contingencies - "Off-Balance Sheet Arrangements", for additional details. Critical Accounting Policies There have been no other material changes in critical accounting policies followed by us during the three months endedMarch 31, 2020 from those disclosed in the 2019 Annual Report. Recently Issued Accounting Standards Accounting standards recently issued are discussed in Item 1. Financial Statements - Note 1, "Corporate Structure and Summary of Significant Accounting Policies", in the notes to unaudited condensed consolidated financial statements. Non-GAAP Financial Measures We report our financial results in accordance with generally accepted accounting principles inthe 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 toCiner 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 our 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:
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Three Months Ended March 31, (In millions, except per unit data) 2020 2019 Reconciliation of Adjusted EBITDA to net income: Net income$ 14.2 $ 25.2 Add backs: Depreciation, depletion and amortization expense 6.5 6.3 Interest expense, net 1.3 1.3 Equity-based compensation expense, net of forfeitures 0.4 0.4 Adjusted EBITDA$ 22.4 $ 33.2 Less: Adjusted EBITDA attributable to non-controlling interest 11.2 16.5 Adjusted EBITDA attributable to Ciner Resources LP$ 11.2 $ 16.7
Reconciliation of distributable cash flow to Adjusted EBITDA attributable to
$ 11.2 $ 16.7
Less: Cash interest (income) expense, net attributable to
(0.5 ) 0.6
Less: Maintenance capital expenditures attributable to
2.7 0.5
Distributable cash flow attributable to
Cash distribution declared per unit$ 0.340 $ 0.340
Total distributions to unitholders and general partner
1.32 2.29
Reconciliation of Adjusted EBITDA to net cash from operating activities: Net cash provided by operating activities
$ 16.7 $ 5.6
Add/(less):
Net change in working capital 4.4 26.2 Interest expense, net 1.3 1.3 Other non-cash items - 0.1 Adjusted EBITDA$ 22.4 $ 33.2 Less: Adjusted EBITDA attributable to non-controlling interest 11.2 16.5 Adjusted EBITDA attributable to Ciner Resources LP$ 11.2 $ 16.7
Less: Cash interest expense, net attributable to
(0.5 ) 0.6
Less: Maintenance capital expenditures attributable to
2.7 0.5
Distributable cash flow attributable to
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