Delek US Holdings, Inc. (NYSE:DK) Q1 2020 Earnings Conference Call - Final Transcript
May 06, 2020 • 09:30 am ET
Ladies and gentlemen, thank you for standing by and welcome to the Delek US First Quarter 2020 Earnings Call. [Operator Instructions] And now I would like to hand the conference over to your speaker today, Mr. Blake Fernandez. Thank you. Please go ahead, sir.
Thank you and good morning. I would like to thank everyone for joining us on today's conference call and webcast to discuss Delek US Holdings First Quarter 2020 Financial Results. Joining me on today's call, Uzi Yemin, Chairman and President and CEO; Assi Ginzburg EVP and CFO; Reuven Spiegel incoming EVP and CFO; and Louis LaBelle Bella EVP and President of Refining as well as other members of our management team.
Presentation materials used during today's call can be found on the Investor Relations section of the Delek US website. As a reminder, this conference call may contain forward-looking statements as the term is defined under Federal Securities laws. Please see Slide 2 for the Safe Harbor statement.
In addition to reporting financial results in accordance with Generally Accepted Accounting Principles, or GAAP, we report certain non-GAAP financial results. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to be comparable to GAAP results, which can be found in the press release, which is posted on the Investor Relations section of our website. Our prepared remarks are being made assuming that the earnings press release has been reviewed and we're covering less segment and market information than is incorporated into the first quarter press release.
On today's call, Assi will review financial performance, I will cover capitalization and guidance, Louis will cover operations and capex then Uzi will offer a few closing strategic comment. With that I will turn the call over to Assi.
Thanks, Blake. On an adjusted basis for the first quarter 2020, Delek US reported a net loss to of $128 million or $1.74 per share compared to a net income of $129.4 million or $1.64 per share in the prior year period. Our adjusted EBITDA loss was $29.7 million in the first quarter 2020 compared to $244.1 million gain in the prior year period.
Adjusted results include $106.1 million of headwinds or $1.44 per share. This is comprised of a pre-tax other inventory loss of $90.8 million. I would like to point out that this is a separate from the LCM inventory charge that is already excluded from adjusted results. Additionally, there is a $36.1 million tax headwinds resulting from applying the annual estimate effective tax rate to the quarterly results.
On Page 4, we provide cash flow waterfall. In the first quarter of 2020, we generate cash flow of approximately negative $154 million from continuing operation, which included working capital benefit of $102 million. Finally, cash capital expenditures in the quarter were $190 million, including the Big Spring turnaround.
With that I will turn it over to Blake.
Thanks, Assi. Slide 5 highlights our capitalization. We ended the first quarter with $785 million of cash on a consolidated basis