Enviva Partners, LP Reports Financial Results for the Fourth Quarter and Full Year 2019 and Announces New Off-Take Contracts

Financial News
Tools
Typography

BETHESDA, Md. -- Enviva Partners, LP (NYSE: EVA) (“Enviva,” the “Partnership,” or “we”) today reported financial and operating results for the fourth quarter and full year of 2019.

Highlights:

  • For the fourth quarter of 2019, reported net income of $0.9 million, adjusted net income of $17.2 million, and adjusted EBITDA of $53.3 million
  • For the full year of 2019, reported net loss of $2.9 million, adjusted net income of $33.4 million, and adjusted EBITDA of $141.3 million
  • Previously announced a distribution of $0.675 per common unit for the fourth quarter of 2019, the Partnership’s eighteenth consecutive distribution increase since IPO
  • Provided full-year 2020 guidance for net income in a range of $43.2 million to $53.2 million and adjusted EBITDA in a range of $165.0 million to $175.0 million, excluding the benefit of any acquisitions or drop-down transactions
  • Reaffirmed previously provided guidance to distribute between $2.87 and $2.97 per common unit for full-year 2020, before considering the benefit of any acquisitions or drop-down transactions
  • Reported that the Partnership and our sponsor executed two new long-term take-or-pay off-take contracts with Japanese customers totaling 420,000 MTPY commencing in 2023

“As expected, we closed 2019 strong, achieving our highest-ever quarterly adjusted EBITDA on more than one million metric tons of wood pellets sold, and delivered full-year distributable cash flow at the high end of our guidance range,” said John Keppler, Chairman and Chief Executive Officer of Enviva. “With the robust pipeline of production plants and terminals and related off-take contracts held by our sponsor and its joint venture, which we expect to be made available to the Partnership for acquisition, we are well-positioned to double our 2019 adjusted EBITDA in the next few years.”

Fourth Quarter Financial Results

For the fourth quarter of 2019, we generated net revenue of $200.5 million, an increase of 18.9 percent, or $31.9 million, from the corresponding quarter of 2018. Included in net revenue were product sales of $195.3 million on 1,041,000 metric tons (“MT”) of wood pellets sold during the fourth quarter of 2019, as compared to $166.0 million on 874,000 MT of wood pellets sold during the corresponding quarter of 2018.

For the fourth quarter of 2019, we generated gross margin of $28.2 million, as compared to $24.5 million for the corresponding quarter of 2018. Adjusted gross margin was $55.0 million for the fourth quarter of 2019, as compared to $31.7 million for the fourth quarter of 2018. Adjusted gross margin per metric ton was $52.83 for the fourth quarter of 2019, as compared to adjusted gross margin per metric ton of $36.23 for the fourth quarter of 2018. The increase in adjusted gross margin is primarily attributable to higher sales volumes, higher pricing due to customer contract mix, and lower production and fiber procurement costs.

For the fourth quarter of 2019, net income and adjusted net income were $0.9 million and $17.2 million, respectively. For the fourth quarter of 2018, net income and adjusted net income were $9.4 million and $14.3 million, respectively.

Adjusted EBITDA for the fourth quarter of 2019 was $53.3 million, as compared to $33.8 million for the corresponding quarter of 2018. The increase was primarily due to the same factors that increased adjusted gross margin. Distributable cash flow, prior to any distributions attributable to incentive distribution rights paid to our general partner, was $39.4 million for the fourth quarter of 2019, as compared to $23.2 million for the corresponding quarter of 2018.

As of December 31, 2019, the Partnership had $9.1 million of cash on hand and no borrowings outstanding under its senior secured revolving credit facility.

Read more...

Source: Enviva Partners