The information in this MD&A is supplemental to,
and should be read in conjunction with the audited financial
statements of Chemtrade Logistics Income Fund (“Chemtrade” or “the
Fund”) in this Annual Report.
The Fund’s financial statements are prepared in accordance
with accounting principles generally accepted in Canada.
The Fund’s reporting currency is the Canadian dollar.
Per unit amounts are calculated using the weighted average
number of units outstanding for the applicable period.
The Fund’s accounting policies are
described in Note
2 to the consolidated financial statements.
See CRITICAL ACCOUNTING POLICIES for additional information
concerning Chemtrade’s accounting policies.
The terms EBITDA and Distributable Cash
are used throughout this MD&A. EBITDA is defined as
earnings before interest, taxes, depreciation and amortization
and minority interest. EBITDA is a metric used by many
investors to compare companies on the basis of ability
to generate cash from operations. It is not intended to
be representative of cash flow from operations or results
of operations determined in accordance with generally accepted
accounting principles or cash available for distribution.
Distributable cash represents EBITDA, less
expenditures on sustaining capital items, interest expense
(net of interest income), current income taxes and the
minority shareholders’ share of income of an operating
subsidiary. Distributable cash is an important metric,
as it summarizes the funds available for distributions
to unitholders.
Neither EBITDA nor Distributable Cash is
a recognized measure under Canadian GAAP. Chemtrade’s
method of calculating EBITDA and Distributable Cash may
differ from methods used by other companies, and accordingly
may not be comparable to similar measures presented by
other companies. A reconciliation of EBITDA to Net Earnings
is in the HIGHLIGHTS section and
a calculation of Distributable Cash can be found in the
DISTRIBUTABLE CASH – CASH DISTRIBUTIONS section.
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