Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (66581)	2/19/2021 4:24:06 PM
From: Elroy	Respond to of 78821

its Distribution/Dividend can be seen as its Net Income. No, net income includes large non-cash depreciation expense. UAN's distribution is calculated from distributable cash flows. Here's their Q3 2020 release. This section contains the distribution calculation *Reconciliation of EBITDA to Available Cash for Distribution* *https://finance.yahoo.com/news/cvr-partners-reports-third-quarter-222400356.html* The calculation is roughly EBITDA + non-cash expenses minus (debt service expense + CapEx + reserves (can be positive or negative, depending whether taking reserves or releasing previous reserves). The inclusion of reserves can cause the distributions to float around wildly as we don't know when they'll take (or reverse) them.