TORONTO, Aug. 12, 2015 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) today announced results for the three and six months ended June 30, 2015. The second quarter financial statements and MD&A will be available on Chemtrade's website at chemtradelogistics.com and on SEDAR at sedar.com.
Revenue in the second quarter of 2015 was $338.8 million compared with $310.1 million in the second quarter of 2014. The primary reason for the revenue increase was the positive impact of the stronger U.S. dollar on U.S. dollar denominated revenues. Adjusted cash flows from operating activities for the second quarter were $47.0 million (2014: $44.6 million).
Distributable cash after maintenance capital expenditures for the second quarter was $38.8 million, or $0.56 per unit (2014: $37.3 million, or $0.62 per unit). The per unit amount is based on a weighted average number of units outstanding of 68.9 million in the second quarter this year, versus 60.1 million units outstanding in the second quarter last year.
Aggregate Adjusted EBITDA for the second quarter of 2015 was $58.7 million compared with $54.7 million in the second quarter of 2014.
For the six months ended June 30, 2015, distributable cash after maintenance capital expenditures was $80.5 million (2014: $51.6 million), or $1.17 per unit (2014: $0.89 per unit) generated from revenue of $664.8 million (2014: $576.2 million). Adjusted EBITDA was $116.8 million (2014: $78.5 million). Adjusted cash flow from operating activities was $92.4 million (2014: $62.6 million).
Mark Davis, President and Chief Executive Officer of Chemtrade, said, "Chemtrade had a good second quarter and a solid first half of the year. The majority of our products performed well, in particular our regenerated sulphuric acid product that serves gasoline producing oil refineries, which are running at high utilization rates due in part to low crude oil prices. Our financial results also benefited from the strong U.S. dollar."
The Sulphur Products and Performance Chemicals segment generated revenue of $158.4 million and Adjusted EBITDA of $38.0 million compared with $143.1 million and $29.4 million, respectively, in 2014. The main reason for the increased revenue in the second quarter of 2015 was the positive impact of the stronger U.S. dollar and higher volumes of sulphuric acid.
The Water Solutions and Specialty Chemicals segment reported second quarter revenue of $117.8 million compared with $116.2 million in 2014. EBITDA was $30.8 million compared with $33.2 million in 2014. EBITDA for the second quarter of 2015 benefited by $2.4 million relative to the second quarter of 2014 as a result of the stronger U.S. dollar. However, this benefit was more than offset by lower volumes and margins for certain products in this segment.
The International segment reported revenue of $62.5 million for the second quarter, compared with $50.7 million in the second quarter of 2014. The higher level of revenue reflects the impact of the stronger U.S. dollar as well as higher volumes of sulphuric acid in international markets. EBITDA for the quarter was $3.5 million, compared with $4.4 million for the second quarter of 2014, which was an exceptionally strong quarter.
Corporate costs during the second quarter of 2015 were $13.6 million, which was $1.3 million higher than the second quarter of 2014, which included a realized foreign exchange gain of $1.7 million.
Mr. Davis said, "Conditions were generally stable during the quarter and first half of the year, and our businesses performed well. A few products experienced some weakness compared with last year; however, the diversity of our product portfolio and the industries we serve, together with our risk-sharing business model enabled us to deliver reliable distributions to unitholders. We remain confident that our portfolio of businesses, business model and strong balance sheet will enable us to sustain our distributions to unitholders and to continue investing in our business to make it even stronger."
Distributions declared in the second quarter totalled $0.30 per unit, comprised of monthly distributions of $0.10 per unit.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions. Specifically, forward-looking statements in this news release include statements respecting certain future expectations about: the effectiveness of our business model; and the sustainability of the Fund's distributions, and continued investment and its effectiveness. Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the "Risk Factors" section of the Fund's latest Annual Information Form and the "Risks and Uncertainties" section of the Fund's most recent Management's Discussion & Analysis.
Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, the Fund has made assumptions regarding: there being no significant disruptions affecting the operations of the Fund and its subsidiaries, whether due to labour disruptions, supply disruptions, power disruptions, transportation disruptions, damage to equipment or otherwise; the ability of the Fund to obtain products, raw materials, equipment, transportation, services and supplies in a timely manner to carry out its activities and at prices consistent with current levels or in line with the Fund's expectations; the timely receipt of required regulatory approvals; the cost of regulatory and environmental compliance being consistent with current levels or in line with the Fund's expectations; the ability of the Fund to successfully access tax losses and tax attributes; the ability of the Fund to obtain financing on acceptable terms; currency, exchange and interest rates being consistent with current levels or in line with the Fund's expectations; and global economic performance.
The Fund disclaims any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at sedar.com.
SOURCE Chemtrade Logistics Income Fund
For further information: Mark Davis, President and CEO, Tel: (416) 496-4176; Rohit Bhardwaj, Vice-President, Finance and CFO, Tel: (416) 496-4177