Enviva Partners, LP Reports Financial Results for Third Quarter 2015





BETHESDA, Md.–(BUSINESS WIRE)–Enviva Partners, LP (NYSE:EVA) (the “Partnership” or “we”) today
reported financial and operating results for the third quarter of 2015.

Highlights for the Quarter:

  • Generated adjusted EBITDA of $15.9 million on net income of $6.4
    million, both in-line with guidance
  • Increased quarterly cash distribution by approximately 7% to
    $0.4400 per unit
  • Maintained strong balance sheet with $75.2 million of cash for
    future growth
  • Acquisition of Southampton plant still expected in fourth quarter
    of 2015

“Enviva’s solid third quarter 2015 operating performance delivered
financial results at the top end of our expectations,” said John
Keppler, Chairman and Chief Executive Officer. “Our stable cash flow
profile and our leadership position in a high-growth industry continues
to differentiate Enviva from the broader MLP sector, as highlighted by
our ability to significantly increase our distribution.”

Third Quarter Results

For the third quarter of 2015, we generated net revenue of $116.6
million, a $40.5 million, or 53 percent, increase over the corresponding
quarter of last year. For the third quarter, we generated net income of
$6.4 million compared to $3.1 million for the corresponding quarter in
2014. The increase in revenue was primarily the result of additional
contracted sales volume and improved customer mix. The increase in net
income was a result of these higher revenues partially offset by higher
general and administrative costs, including costs associated with being
a public company.

Adjusted EBITDA improved to $15.9 million in the third quarter of 2015,
a 59 percent increase compared to the corresponding period in 2014. The
improvement was driven by higher sales volumes, more favorable pricing
under our customer contracts, and lower export shipping costs, and was
partially offset by the increased costs of delivered wood pellets that
were purchased under contract from our sponsor’s Southampton plant this
year and higher general and administrative costs.

The Partnership’s distributable cash flow for the third quarter was
$12.6 million, resulting in a distribution coverage ratio of 1.21 times.

Liquidity and Financial Position

The Partnership had total cash on hand of $75.2 million at September 30,
2015, which is available for general partnership purposes, including
potential acquisitions.

Distribution

As announced last week, the board of directors of the Partnership’s
general partner (the “Board”) declared a cash distribution of $0.4400
per common and subordinated unit for the third quarter of 2015. For the
second quarter of 2015, the Partnership paid a prorated amount of the
minimum quarterly distribution of $0.4125 per unit as its first
distribution following the closing of its initial public offering. The
distribution for the third quarter is approximately 7 percent higher
than the minimum quarterly distribution. The quarterly distribution will
be paid Friday, November 27, 2015, to unitholders of record as of the
close of business Tuesday, November 17, 2015.

Outlook and Guidance

The guidance amounts provided below do not include the impact of any
potential acquisitions from the Partnership’s sponsor or others.
Consistent with previous guidance, the Partnership expects its existing
business to generate net income in the range of $5.6 million to $6.6
million and adjusted EBITDA in the range of $14.8 million to $15.8
million, and to incur maintenance capital expenditures in the range of
$0.5 million to $1.0 million and interest expense net of amortization of
debt issuance costs and original issue discount of $2.5 million in the
fourth quarter of 2015. As a result, the Partnership expects to generate
distributable cash flow of $11.3 million to $12.3 million during the
fourth quarter of 2015. Consistent with our prior guidance for the
second half of 2015, fourth quarter adjusted EBITDA is expected to be
slightly below the run rate of prior quarters primarily due to an
unfavorable contracted shipment (one of two) inherited as part of the
Cottondale plant acquisition, partially offset by a non-recurring
utility refund.

Mr. Keppler commented, “We expect Enviva’s strong year-to-date operating
performance to continue in the fourth quarter of 2015 and beyond. We
believe our stable cash flow profile, combined with the anticipated
acquisition of the proposed Southampton plant and the benefits from
incremental, modest capital investments in our current plants, will
provide opportunities to substantially increase our distribution going
forward.”

Sponsor Activity

The Partnership continues to progress the potential acquisition of the
fully operational 510,000 metric tons per year (“MTPY”) wood pellet
production plant in Southampton County, Virginia (the “Southampton
plant”) currently owned and operated by the Partnership’s sponsor. The
sponsor has made a proposal to the Partnership regarding the potential
acquisition by the Partnership of the Southampton plant, together with a
ten-year, 500,000 MTPY off-take agreement (385,000 metric tons for the
first year), which is being evaluated by a Conflicts Committee formed by
the Board due to the related party nature of the proposed transaction.
We continue to discuss the terms, including financing of the proposed
transaction, and expect to complete the transaction in the fourth
quarter of 2015.

In addition, the sponsor’s 515,000 MTPY production plant in Sampson
County, North Carolina (the “Sampson plant”) and a deep-water marine
terminal in Wilmington, North Carolina (the “Wilmington terminal”) are
both on track to begin operations in the first quarter of 2016. The
Partnership expects to have the opportunity to acquire the Sampson plant
with a ten-year off-take contract in late 2016 and the Wilmington
terminal in 2017. Finally, the sponsor continues to prepare for the
construction of an additional 500,000 MTPY production plant on a site it
owns in Hamlet, North Carolina.

Market Update

Major European power generators continue to make the economic decision
to fuel generation with wood pellets, highlighting strong growth in this
industry:

  • DONG Energy’s coal-to-wood pellet conversion of its 360 megawatt
    (“MW”) Studstrup unit 3 and expansion of its 250 MW Avedore unit 1 are
    on track. The Avedore unit is part of the largest power station in
    Denmark and its other unit is already firing wood pellets and straw.
    Combined additional annual wood pellet demand from these two power
    stations is projected to be around 1 million tons starting in 2016.
    Our sponsor has a ten-year, 420,000 MTPY (385,000 metric tons for the
    first year) off-take agreement with an affiliate of DONG Energy that
    commences in September 2016.
  • E.ON announced the sale of its 556 MW Langerlo power facility in
    Belgium, which the buyer intends to convert to a wood pellet-fueled
    power station that is expected to commence operations in 2017. When
    fully operational, this facility is projected to require more than 1.5
    million tons of wood pellets annually.
  • Macquarie’s MGT Teesside 299 MW Renewable Energy Plant project has
    initiated the selection of lenders as it continues to progress towards
    financial close in early 2016 after its U.K. government-backed
    contract for difference (“CfD”) passed the EU state-aid review
    process. This project is expected to consume more than 1 million tons
    of wood pellets annually, commencing in early 2019.
  • Drax’s third 660 MW biomass unit is operational and ramping up toward
    full capacity when it is expected to demand more than 2 million tons
    of wood pellets annually. Also in the U.K., RWE’s 420 MW Lynemouth
    coal facility is expected to generate demand for approximately 1.5
    million tons of wood pellets annually. Both facilities have received
    confirmation from the U.K. government that they can move forward with
    their planned conversions to biomass under the Renewable Obligation
    Certificate (“ROC”) subsidy as an alternative to their previously
    awarded CfDs if the CfDs do not receive EU state aid approval.

At the country level, in the Netherlands, the Minister of Economic
Affairs stated in a letter to Parliament his intention to significantly
increase the budget for the renewable incentive scheme from 3.5 billion
euros in 2015 to 8.0 billion euros in 2016, consistent with a report
from the Dutch Court of Audit that the scheme budget needed to be
increased in order to meet binding EU renewables targets. The final
budget is expected to be confirmed before the end of 2015.

In the U.S., the Environmental Protection Administration (“EPA”)
published the final Clean Power Plan in the Federal Register. This
regulatory action is one of the keystones of the current
administration’s climate change initiative and, with this announcement,
the EPA will begin accepting comments on its proposed “Model Rule” which
is intended to provide states with a road map for developing their
plans, including use of biomass, to meet the aggressive CO2
emissions reductions and renewable energy targets. Although a series of
expected lawsuits have been filed against the EPA’s action, states are
still expected to submit their plans by September 2016.

“Customers in our core European utility market segment continue to see
profitable opportunities to generate renewable energy by converting
coal-fired assets to biomass-fired power stations,” said Mr. Keppler.
“In addition to the highly visible growth in this sector, we are also
encouraged by the initial regulatory progress for utility demand in the
U.S. and the rapidly growing institutional, industrial, and residential
heating demand for wood pellets both here and abroad, which our
production increasingly has the opportunity to serve.”

Investor Conference

Management will be participating in the 2015 RBC Capital Markets’ MLP
Conference in Dallas, Texas on November 19, 2015.

Conference Call

The Partnership will host a conference call with executive management
related to its third quarter 2015 results and to discuss our outlook,
guidance, market update, and update on our sponsor’s activities at
10:00 a.m. (Eastern Time) on Thursday, November 5, 2015. Information on
how interested parties may listen to the conference call is available in
the Investor Relations page of our website (www.envivabiomass.com).
A replay of the conference call will be available on our website after
the live call concludes.

About Enviva Partners, LP

Enviva Partners, LP (NYSE:EVA) is a publicly traded master limited
partnership that aggregates a natural resource, wood fiber, and
processes it into a transportable form, wood pellets. The Partnership
sells a significant majority of its wood pellets through long-term,
take-or-pay agreements with creditworthy customers in the United Kingdom
and Europe. The Partnership owns and operates five plants in Northampton
County and Ahoskie, North Carolina; Amory and Wiggins, Mississippi; and
Cottondale, Florida. We have a combined production capacity of
approximately 1.7 million metric tons of wood pellets per year. In
addition, the Partnership owns a deep-water marine terminal at the Port
of Chesapeake, Virginia, which is used to export wood pellets. Enviva
Partners also exports pellets through the ports of Mobile, Alabama and
Panama City, Florida.

To learn more about Enviva Partners, LP, please visit our website at www.envivabiomass.com.

Non-GAAP Financial Measures

We view adjusted gross margin per metric ton, adjusted EBITDA, and
distributable cash flow as important indicators of performance.

Adjusted Gross Margin per Metric Ton

We define adjusted gross margin as gross margin excluding depreciation
and amortization included in cost of goods sold. We believe adjusted
gross margin per metric ton is a meaningful measure because it compares
our off-take pricing to our operating costs for a view of profitability
and performance on a per metric ton basis. Adjusted gross margin per
metric ton will primarily be affected by our ability to meet targeted
production volumes and to control direct and indirect costs associated
with procurement and delivery of wood fiber to our production plants and
the production and distribution of wood pellets.

Adjusted EBITDA

We define adjusted EBITDA as net income or loss excluding depreciation
and amortization, interest expense, taxes, early retirement of debt
obligation, non-cash unit compensation expense, asset impairments and
disposals, and certain items of income or loss that we characterize as
unrepresentative of our operations. Adjusted EBITDA is a supplemental
measure used by our management and other users of our financial
statements, such as investors, commercial banks, and research analysts,
to assess the financial performance of our assets without regard to
financing methods or capital structure.

Distributable Cash Flow

We define distributable cash flow as adjusted EBITDA less maintenance
capital expenditures and interest expense net of amortization of debt
issuance costs and original issue discount. Distributable cash flow is
used as a supplemental measure by our management and other users of our
financial statements as it provides important information relating to
the relationship between our financial operating performance and our
ability to make cash distributions.

Adjusted gross margin per metric ton, adjusted EBITDA, and distributable
cash flow are not financial measures presented in accordance with
generally accepted accounting principles (“GAAP”). We believe that the
presentation of these non-GAAP financial measures provides useful
information to investors in assessing our financial condition and
results of operations. Our non-GAAP financial measures should not be
considered as alternatives to the most directly comparable GAAP
financial measures. Each of these non-GAAP financial measures has
important limitations as an analytical tool because they exclude some,
but not all, items that affect the most directly comparable GAAP
financial measures. You should not consider adjusted gross margin per
metric ton, adjusted EBITDA, or distributable cash flow in isolation or
as substitutes for analysis of our results as reported under GAAP. Our
definitions of these non-GAAP financial measures may not be comparable
to similarly titled measures of other companies, thereby diminishing
their utility.

The following tables present a reconciliation of adjusted gross margin
per metric ton, adjusted EBITDA, and distributable cash flow to the most
directly comparable GAAP financial measure, as applicable, for each of
the periods indicated.

    Three Months Ended September 30,   Nine Months Ended September 30,
  2015     2014   2015     2014
(Predecessor) (Predecessor)
(in thousands, except per metric ton)

Reconciliation of gross margin to adjusted
 gross margin per
metric ton:

Metric tons sold 602 397 1,746 1,094
Gross margin $ 14,056 $ 8,066 $ 39,116 $ 11,964
Depreciation and amortization (1)   6,294   4,767   21,587   14,308
Adjusted gross margin $ 20,350 $ 12,833 $ 60,703 $ 26,272
Adjusted gross margin per metric ton $ 33.80 $ 32.32 $ 34.77 $ 24.01
(1)   Excludes depreciation of office furniture and equipment. Such amount
is included in general and administrative expenses.
 
    Three Months Ended September 30,   Nine Months Ended September 30,
  2015       2014   2015       2014  
(Predecessor) (Predecessor)
(in thousands)

Reconciliation of distributable cash flow and
 adjusted
EBITDA to net income (loss):

Net income (loss) $ 6,398 $ 3,105 $ 9,935 $ (2,123 )
Add:
Depreciation and amortization 6,306 4,777 21,621 14,335
Interest expense 2,887 2,124 8,673 6,619
Early retirement of debt obligation 4,699 73

Purchase accounting adjustment to
 inventory

697
Non-cash unit compensation expense 180 1 363 2
Income tax expense 1 4 2,657 12
Asset impairments and disposals (127 ) (100 ) 62
Acquisition transaction expenses   257       257      
Adjusted EBITDA $ 15,902   $ 10,011 $ 48,802   $ 18,980  
Less:

Interest expense net of amortization of
 debt issuance costs
and original issue
 discount

2,532 1,619 7,444 5,103
Maintenance capital expenditures   735     184   2,342     184  
Distributable cash flow $ 12,635   $ 8,208 $ 39,016   $ 13,693  
 

The following table provides a reconciliation of the estimated range of
adjusted EBITDA to the estimated range of net income, in each case for
the three months ending December 31, 2015 (in millions):

    Three Months Ending December 31, 2015
Estimated net income $ 5.6-6.6
Add:
Depreciation and amortization 5.1
Interest expense 2.8
Non-cash unit compensation expense 0.4
Income tax expense 0.1
Asset impairments and disposals 0.3
Acquisition transaction expenses   0.5
Estimated adjusted EBITDA $ 14.8-15.8
 

Cautionary Note Concerning Forward-Looking Statements

Certain statements and information in this press release, including
those concerning our future results of operations, acquisition
opportunities, and distributions, may constitute “forward-looking
statements.” The words “believe,” “expect,” “anticipate,” “plan,”
“intend,” “foresee,” “should,” “would,” “could,” or other similar
expressions are intended to identify forward-looking statements, which
are generally not historical in nature. These forward-looking statements
are based on the Partnership’s current expectations and beliefs
concerning future developments and their potential effect on the
Partnership. Although management believes that these forward-looking
statements are reasonable when made, there can be no assurance that
future developments affecting the Partnership will be those that it
anticipates. The forward-looking statements involve significant risks
and uncertainties (some of which are beyond the Partnership’s control)
and assumptions that could cause actual results to differ materially
from the Partnership’s historical experience and its present
expectations or projections. Important factors that could cause actual
results to differ materially from forward-looking statements include,
but are not limited to: (i) the amount of products that the Partnership
is able to produce, which could be adversely affected by, among other
things, operating difficulties; (ii) the volume of products that the
Partnership is able to sell; (iii) the price at which the Partnership is
able to sell products; (iv) changes in the price and availability of
natural gas, coal, or other sources of energy; (v) changes in prevailing
economic conditions; (vi) the Partnership’s ability to complete
acquisitions, including acquisitions from its sponsor;
(vii) unanticipated ground, grade, or water conditions; (viii) inclement
or hazardous weather conditions, including extreme precipitation,
temperatures, and flooding; (ix) environmental hazards; (x) fires,
explosions, or other accidents; (xi) changes in domestic and foreign
laws and regulations (or the interpretation thereof) related to
renewable or low-carbon energy, the forestry products industry, or power
generators; (xii) inability to acquire or maintain necessary permits;
(xiii) inability to obtain necessary production equipment or replacement
parts; (xiv) technical difficulties or failures; (xv) labor disputes;
(xvi) late delivery of raw materials; (xvii) inability of the
Partnership’s customers to take delivery or their rejection of delivery
of products; (xviii) changes in the price and availability of
transportation; and (xix) the Partnership’s ability to borrow funds and
access capital markets.

For additional information regarding known material factors that could
cause the Partnership’s actual results to differ from projected results,
please read its filings with the Securities and Exchange Commission,
including the prospectus filed on April 29, 2015 in connection with the
IPO and the Quarterly Report on Form 10-Q for the quarter ended
September 30, 2015. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date thereof. The
Partnership undertakes no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as a
result of new information, future events, or otherwise.

Notice

This press release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat one
hundred percent (100%) of the Partnership’s distributions to non-U.S.
investors as being attributable to income that is effectively connected
with a United States trade or business. Accordingly, the Partnership’s
distributions to non-U.S. investors are subject to federal income tax
withholding at the highest applicable effective tax rate.

Financial Statements

ENVIVA PARTNERS, LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

     
September 30,
2015
December 31,
2014
(Predecessor)
Assets
Current assets:
Cash and cash equivalents $ 75,157 $ 592

Accounts receivable, net of allowance for doubtful accounts of $0
in 2015 and
 $61 in 2014

44,464 21,998
Related party receivable 652
Inventories 25,366 18,064
Restricted cash 11,640
Deferred issuance costs 4,052
Prepaid expenses and other current assets   2,808   1,734
Total current assets 148,447 58,080

Property, plant and equipment, net of accumulated depreciation of
$49.1 million in
 2015 and $40.9 million in 2014

321,639 316,259

Intangible assets, net of accumulated amortization of $6.9 million
in 2015 and $1.0
 million in 2014

3,505 722
Goodwill 85,615 4,879

Debt issuance costs, net of accumulated amortization of $0.5
million in 2015 and
 $3.0 million in 2014

4,705 3,594
Other long-term assets   519   955
Total assets $ 564,430 $ 384,489
Liabilities and Partners’ Capital
Current liabilities:
Accounts payable $ 8,975 $ 4,013
Related party payable 5,459 2,354
Accrued and other current liabilities 16,399 8,159
Deferred revenue 575 60
Current portion of interest payable 73
Current portion of long-term debt and capital lease obligations   3,072   10,237
Total current liabilities 34,480 24,896
Long-term debt and capital lease obligations 173,767 83,838
Other long-term liabilities   1,176   1,227
Total liabilities 209,423 109,961
Commitments and contingencies
Partners’ capital:
Predecessor equity 271,495
General partner interest
Limited partner interests, 23.8 million units outstanding   352,004  
Total Enviva Partners, LP partners’ capital 352,004 271,495
Noncontrolling partners’ interests   3,003   3,033
Total partners’ capital   355,007   274,528
Total liabilities and partners’ capital $ 564,430 $ 384,489
 

ENVIVA PARTNERS, LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per unit amounts)

(Unaudited)

     
Three Months Ended September 30, Nine Months Ended September 30,
  2015       2014     2015       2014  
(Predecessor) (Predecessor)
Product sales $ 115,081 $ 75,186 $ 335,857 $ 208,332
Other revenue   1,507     924     4,704     2,827  
Net revenue 116,588 76,110 340,561 211,159

Cost of goods sold, excluding depreciation and
 amortization

96,238 63,277 279,858 184,887
Depreciation and amortization   6,294     4,767     21,587     14,308  
Total cost of goods sold   102,532     68,044     301,445     199,195  
Gross margin 14,056 8,066 39,116 11,964
General and administrative expenses   4,779     2,837     13,176     7,399  
Income from operations 9,277 5,229 25,940 4,565
Other income (expense):
Interest expense (2,887 ) (2,124 ) (7,576 ) (6,619 )
Related party interest expense (1,097 )
Early retirement of debt obligation (4,699 ) (73 )
Other income   9     4     24     16  
Total other expense, net   (2,878 )   (2,120 )   (13,348 )   (6,676 )
Income (loss) before tax expense 6,399 3,109 12,592 (2,111 )
Income tax expense   1     4     2,657     12  
Net income (loss)   6,398     3,105     9,935     (2,123 )

Less net loss attributable to noncontrolling partners’
 interests

  14     19     30     61  
Net income (loss) attributable to Enviva Partners, LP $ 6,412   $ 3,124   $ 9,965   $ (2,062 )
Less: Predecessor loss to May 4, 2015 (prior to IPO) $ (2,132 )

Enviva Partners, LP partners’ interest in net income
 from
May 5, 2015 to September 30, 2015

$ 12,097  
Net income per common unit:
Basic $ 0.27 $ 0.51
Diluted $ 0.27 $ 0.50
 
Net income per subordinated unit:
Basic $ 0.27 $ 0.51
Diluted $ 0.27 $ 0.50
 

Weighted average number of limited partner units
 outstanding:

Common – basic 11,906 11,906
Common – diluted 12,193 12,179
Subordinated – basic and diluted 11,905 11,905
 

Distribution declared per limited partner unit for
 respective
periods

$ 0.4400 $ 0.7030
 

ENVIVA PARTNERS, LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

   
Nine Months Ended September 30,
  2015       2014  
(Predecessor)
Net income (loss) $ 9,935 $ (2,123 )

Adjustments to reconcile net income (loss) to net cash provided by
operating
 activities:

Depreciation and amortization 21,621 14,335
Amortization of debt issuance costs and original issue discount 1,229 1,516
General and administrative expense incurred by Enviva Holdings, LP 475
Allocation of income tax expense from Enviva Cottondale Acquisition
I, LLC
2,663
Early retirement of debt obligation 4,699 73
Unit-based compensation expense 363 2
Other operating (74 ) 46
Change in operating assets and liabilities:
Accounts receivable (9,954 ) (4,454 )
Prepaid expenses and other assets (757 ) 2,331
Inventories (4,985 ) 3,833
Other long-term assets 494 268
Accounts payable, accrued liabilities and other current liabilities 13,405 5,541
Accrued interest 33 (286 )
Deferred revenue 515 (536 )
Other long-term liabilities       384  
Net cash provided by operating activities 39,662 20,930
Cash flows from investing activities:
Purchases of property, plant and equipment (4,129 ) (13,860 )
Restricted cash 43
Payment of acquisition related costs (3,573 )
Proceeds from the sale of equipment   277     25  
Net cash used in investing activities (7,425 ) (13,792 )
Cash flows from financing activities:
Principal payments on debt and capital lease obligations (183,183 ) (40,117 )
Cash paid related to debt issuance costs (5,123 )
Termination payment for interest rate swap derivatives (146 )
Release of cash restricted for debt service 11,640
Cash restricted for debt service (4,600 )
IPO proceeds, net 215,050
Cash distribution to sponsor (176,702 )
Cash paid deferred IPO costs (1,790 )
Cash distribution to unitholders (6,159 )
Proceeds from contributions from sponsor 10,236
Proceeds from debt issuance   178,505     37,000  
Net cash provided by (used in) financing activities   42,328     (7,717 )
Net increase (decrease) in cash and cash equivalents 74,565 (579 )
Cash and cash equivalents, beginning of period   592     3,558  
Cash and cash equivalents, end of period $ 75,157   $ 2,979  
 

ENVIVA PARTNERS, LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

   
Nine Months Ended September 30,
  2015     2014
(Predecessor)
Non-cash investing and financing activities:

The Partnership acquired property, plant and equipment in non-cash
transactions
 as follows:

Property, plant and equipment acquired and included in accounts
payable and
 accrued liabilities

$ 1,431 $ 327

Property, plant and equipment acquired and included in other
assets as notes
 receivable

175
Property, plant and equipment acquired under capital leases 290
Property, plant and equipment acquired under notes payable 39
Property, plant and equipment transferred from prepaid expenses 173
Property, plant and equipment transferred from inventory 146
Contribution of Enviva Pellets Cottondale, LLC non-cash net assets 122,529
Application of deferred IPO costs to partners’ capital 5,913
IPO costs included in accounts payable and accrued liabilities 21
Distributions included in liabilities 179
Debt issuance costs included in accrued liabilities 66
Conveyance of Enviva Pellets Southampton, LLC to Hancock JV 91,696
Distribution of Enviva Pellets Cottondale, LLC assets to sponsor 354
Non-cash adjustments to financed insurance and prepaid expenses 105
Gain on disposal included in receivables 8
Financed insurance 2,157
Depreciation capitalized to inventories 409 242
Early retirement of debt obligation:
Deposit applied to principal outstanding under promissory note 391
Deposit applied to accrued interest under promissory note 154
Non-cash capital contributions from sponsor 339 1,083
Supplemental information:
Interest paid $ 7,369 $ 5,181