Cypress Environmental Partners, L.P. unveiled its fourth quarter financial earnings showing a 59% drop compared to a year earlier and admitted 2020 was the worst year in the company’s history.
The financial results for the three months ended Dec. 31, 2020 showed a net loss to common unitholders of $1.9 million while the fourth quarter 2020 Adjusted EBITDA of $1.5 million was 59% lower than the third quarter of 2020.
“2020 was our worst year in our short history following our best year that included record results in 2019 prior to the COVID-19 global pandemic,” said Peter C. Boylan III, Chairman, President and CEO.
He admitted the firm’s business results continued to suffer because of ongoing demand headwinds from COVID-19 and also from the bad debt that led a former customer to file for bankruptcy.
Cypress also closed on an amended credit facility that reduced the total capacity to $75 million and put what the firm called “significant restrictions” on its ability to pay distributions.
The company suspended distributions in July of 2020 and said because of the restrictions on its credit capacity does not expect to pay distributions in the near term. The firm said it expects to use available cash to pay down debt and for working capital needs.
Long-term debt for Cypress is listed at $62 million compared to nearly $75 million a year ago.
Cypress managed to increase its cash balance to $17.9 million with a net debt leverage ratio of 4.1x.
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