ATLANTA--(BUSINESS WIRE)--Ciner Resources LP (NYSE: CINR) (“we”, “us, “our”, or the “Partnership”) today reported its financial and operating results for the fourth quarter ended December 31, 2019.

Fourth Quarter and Year Ended 2019 Financial Highlights:

• Net sales of $125.4 million decreased 5.1% over the prior-year fourth quarter; year-end net sales of $522.8 million increased 7.4% over the prior-year.
• Soda ash volume produced and sold decreased 3.0% and 1.4%, respectively, over the prior-year fourth quarter; year-end soda ash volume produced and sold increased 5.3% and 5.6%, respectively, over the prior-year.
• Net income of $22.7 million decreased $5.9 million over the prior-year fourth quarter; year-end net income of $101.6 million decreased $1.4 million over the prior-year. Net income for the year ended December 31, 2018 included a $27.5 million litigation settlement gain recognized in the second quarter of 2018.
• Adjusted EBITDA of $31.8 million decreased 14.1% over the prior-year fourth quarter; year-end Adjusted EBITDA of $135.4 million remained relatively flat over the prior-year. Adjusted EBITDA for the year ended December 31, 2018 included a $27.5 million litigation settlement gain recognized in the second quarter of 2018.
• Earnings per unit of $0.550 for the quarter decreased 21.4% over the prior-year fourth quarter of $0.700; year- end earnings per unit of $2.460 remained relatively flat over the prior-year. Net income attributable to the Partnership for the year ended December 31, 2018 included a $27.5 million litigation settlement gain recognized in the second quarter of 2018.
• Quarterly distribution declared per unit of $0.340 decreased 40.0% compared to the prior-year fourth quarter and remained flat compared to the first, second and third quarters of 2019.
• Net cash provided by operating activities of $35.4 million increased 14.9% over prior-year fourth quarter; year- end net cash provided by operating activities of $103.8 million decreased by 36.0% over the prior-year.
• Distributable cash flow of $9.2 million decreased 33.8% compared to the prior-year fourth quarter; year-end distributable cash flow of $54.9 million decreased 6.0% over the prior-year. Distributable cash flow for the year ended December 31, 2018 included a $27.5 million litigation settlement gain recognized in the second quarter of 2018.
• The distribution coverage ratio was 1.35 and 1.22 for the three months ended December 31, 2019 and 2018, respectively; and 2.00 and 1.28 for the year ended December 31, 2019 and 2018, respectively.

Oğuz Erkan, CEO, commented: “2019 was a historic year for Ciner Resources, highlighted by an annual production record of 2.75 million short tons. The year-over-year 5% increase in volume marked a commendable turnaround from 2018, demonstrating our emphasis on operational success and production reliability. Our team showed tremendous commitment to proactively reducing maintenance downtime and maximizing efficiency of our assets.”

“Strong production, along with a favorable pricing environment, resulted in $522.8 million in net sales, $101.6 million in net income and $135.4 million of Adjusted EBITDA for the year, allowing us to fund a significant portion of our substantial capital expenditures with operating cash flows while maintaining a conservative leverage profile. In that regard, I am happy to report that our Green River Expansion Project continues to move forward on schedule.”

“As we reflect on a successful year, I am extremely proud of our team’s continued dedication to safety. Safe operations are critical to achieving our operational goals, and getting our employees home safely every day is our number one priority.”

Three Months Ended December 31, 2019 compared to Three Months Ended December 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.

Consolidated Results

Net sales. Net sales decreased by 5.1% to $125.4 million for the three months ended December 31, 2019 from $132.2 million for the three months ended December 31, 2018, primarily driven by a decrease in soda ash volumes sold of 1.4% due to lower production for the three months ended December 31, 2019, as well as a decrease in average sales prices of 3.8%. The decrease in sales prices was primarily driven by a decrease in international pricing during the three months ended December 31, 2019.

Cost of products sold. Cost of products sold, including depreciation, depletion and amortization expense and freight costs, remained relatively flat at $97.2 million for the three months ended December 31, 2019 compared to $96.9 million for the three months ended December 31, 2018, primarily due to an increase in employee compensation costs and overall maintenance expenses compared to the fourth quarter of 2018, partially offset by lower variable production costs for the quarter as a result of lower production and sales volumes for the fourth quarter of 2019 compared to the fourth quarter of 2018.

Selling, general and administrative expenses. Our selling, general and administrative expenses decreased 23.2% to $4.3 million for the three months ended December 31, 2019, compared to $5.6 million for the three months ended December 31, 2018. The decrease was driven primarily by decreases in employee compensation costs and professional fees compared to the fourth quarter of 2018.

Operating income. As a result of the foregoing, operating income decreased by 19.5% to $23.9 million for the three months ended December 31, 2019, compared to $29.7 million for the three months ended December 31, 2018.

Net income. As a result of the foregoing, net income decreased by 20.6% to $22.7 million for the three months ended December 31, 2019, compared to $28.6 million for the three months ended December 31, 2018.

Year Ended December 31, 2019 compared to Year Ended December 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.