CVR Partners, LP (UAN) saw its loss narrow to $13.40 million, or $0.12 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $13.50 million, or $0.18 a share.
Revenue during the quarter surged 59.23 percent to $78.50 million from $49.30 million in the previous year period. Gross margin for the quarter expanded 406 basis points over the previous year period to 74.65 percent. Operating margin for the quarter period stood at positive 3.06 percent as compared to a negative 23.94 percent for the previous year period.
Operating income for the quarter was $2.40 million, compared with an operating loss of $11.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $17.40 million compared with $3.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 1446 basis points in the quarter to 22.17 percent from 7.71 percent in the last year period.
"Although we faced a challenging nitrogen fertilizer pricing environment in the 2016 third quarter, we were pleased to record another period of high on-stream rates at both plants," said Mark Pytosh, chief executive officer. "Of significant note is our success with the ammonia expansion at the East Dubuque fertilizer facility. Since installing a new ammonia synthesis converter during the facility’s planned second quarter turnaround, ammonia production levels have averaged over 1,075 tons per day - an increase of more than 15 percent over rates leading into the turnaround.
Operating cash flow declines
CVR Partners, LP has generated cash of $47.50 million from operating activities during the nine month period, down 16.81 percent or $9.60 million, when compared with the last year period.
The company has spent $82.10 million cash to meet investing activities during the nine month period as against cash outgo of $12.40 million in the last year period.
Cash flow from financing activities was $49.90 million for the nine month period as against cash outgo of $91.40 million in the last year period.
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