Arc Logistics Partners LP (NYSE:ARCX) ("Arc Logistics" or the
"Partnership") today reported its financial and operating results
for the second quarter ended June 30, 2017.
During the second quarter of 2017, the Partnership
accomplished the following:
- Realized throughput of 174.4 thousand barrels per day
(“mbpd”)
- Reported revenues, net income and Adjusted EBITDA of $26.6
million, $4.6 million and $14.1 million, respectively
- Invested $3.8 million of expansion capital expenditures to
support existing, new and future customer initiatives
- Generated cash flows from operating activities of $25.0 million
and Distributable Cash Flow of $10.7 million
- Declared a quarterly cash distribution of $0.44 per unit for
the second quarter ended June 30, 2017
For additional information regarding the
Partnership’s calculation of Adjusted EBITDA and Distributable Cash
Flow, which are non-GAAP financial measures, and a reconciliation
of net income to Adjusted EBITDA and cash flows from operating
activities to Distributable Cash Flow, please see below in this
release and the accompanying tables.
Second Quarter 2017 Operational and
Financial Results
The Partnership’s second quarter 2017 reported
revenues, net income and Adjusted EBITDA of $26.6 million, $4.6
million and $14.1 million, respectively, represents an increase
over the Partnership’s second quarter 2016 reported revenues of
$26.2 million and a decrease from the Partnership’s second quarter
2016 reported net income and Adjusted EBITDA of $6.9 million and
$14.5 million, respectively. Operating income decreased by $1.9
million to $5.0 million for the second quarter 2017 when compared
to the second quarter 2016 operating income of $6.9 million,
principally due to the following:
- Revenues increased by $0.3 million, or 1%, to $26.6 million as
compared to $26.2 million, due to (i) a $0.3 million increase in
total storage and throughput services fees and (ii) a $0.1 million
increase in ancillary services fees. ° Total storage and
throughput services fees increased by $0.3 million, or 1%, to $25.1
million. This increase was attributable to a $0.6 million increase
in the Partnership’s excess throughput and handling fees, which was
partially offset by a $0.3 million decrease in the Partnership’s
minimum storage and throughput services fees. The Partnership’s
increased excess throughput and handling fees primarily resulted
from the execution of new customer agreements, or agreements with
existing customers, incremental throughput and handling fees from
existing customers and contract amendments or contractual rate
adjustments at the Partnership’s Altoona, Baltimore, Blakeley,
Chickasaw, Cleveland, Dupont, Madison Mechanicsburg, Mobile,
Pawnee, Selma, Toledo and Williamsport terminals partially offset
by customer non-renewals and reduced customer activity at the
Partnership’s Altoona, Baltimore, Blakeley, Brooklyn, Chickasaw,
Dupont, Joliet, Mobile, Mobile-Methanol, Norfolk, Spartanburg,
Toledo and Williamsport terminals. The Partnership’s decrease in
minimum storage and throughput services fees primarily resulted
from customer non-renewals and, customers who reduced their
short-term storage capacity needs and/or reduced their total
minimum take-or-pay volume requirements or rates at the
Partnership’s Altoona, Baltimore, Brooklyn, Dupont, Mechanicsburg,
Mobile, Norfolk, Portland, Selma and Williamsport terminals and
taking tanks out of service at the Partnership’s Blakeley and
Chickasaw terminals, which was partially offset by increases
related to the execution of new customer agreements, agreements
with existing customers and customers who increased their long-term
and short-term storage capacity requirements or whose contracts
included automatic step- up provisions at the Partnership’s
Altoona, Blakeley, Brooklyn, Chickasaw, Cleveland, Dupont, Joliet,
Madison, Mechanicsburg, Mobile, Pawnee and Toledo terminals.°
Ancillary services fees increased a $0.1 million primarily due to
new customer agreements and an increase in services provided to
existing customers, including lab fees, natural gas reimbursement,
railcar storage, blending, and other services at the Partnership’s
Brooklyn, Blakeley, Chickasaw, Joliet, Mobile and Norfolk
terminals, which were offset by a decrease in ancillary services or
customer non-renewals at the Partnership’s Baltimore, Blakeley,
Chickasaw, Cleveland, Mobile, Mobile-Methanol, Pawnee, Portland,
Selma and Toledo terminals.
- Operating expenses increased by $0.6 million, or 8%, to $8.9
million as compared to $8.2 million, due to: (i) a $0.1 million
increase attributable to increased throughput activity including
additive, utility and supply expenses; (ii) a $0.1 million increase
in repair and maintenance expenses; (iii) a $0.1 million increase
in contract labor in support of customer activities at the Joliet
terminal; (iv) an increase in compliance expense of less than $0.1
million; (v) an increase in property taxes of $0.4 million; and
(vi) a reduction in payroll expenses of $0.1 million.
- Selling, general and administrative expenses decreased by
approximately $0.4 million, or 9%, to $4.0 million as compared to
$4.4 million, due to: (i) a less than $0.1 million decrease in due
diligence expenses; (ii) a less than $0.1 million decrease in
professional fees; and (iii) a $0.3 million decrease related to a
reduction in stock-based compensation expense under the
Partnership’s long-term incentive plan.
- Depreciation expense increased by $0.8 million, or 21%, to $4.5
million as compared to $3.7 million, primarily due to the impact of
the expansion project at the Partnership’s Pennsylvania terminals
which were acquired in 2016, customer expansion activities and
incremental maintenance projects. Amortization expense decreased by
$0.1 million, or 2%, to $3.6 million, primarily due to an
intangible asset related to the Mobile terminal acquisition
becoming fully amortized in the first quarter of 2016.
As of June 30, 2017, the Partnership's storage
capacity was approximately 7.8 million barrels, which represents an
increase of approximately 0.1 million barrels, or 1%, when compared
to the Partnership’s capacity at June 30, 2016. The increase in
storage capacity is related to three newly constructed biodiesel
tanks at the Pennsylvania terminals and the completion of the third
100,000 barrel tank at the Pawnee terminal.
The Partnership's throughput activity increased by
11.9 mbpd, or 7%, to 174.4 mbpd during the second quarter of 2017
compared to the second quarter of 2016. The increase was due to:
(i) a 1.7 mbpd increase in asphalt and industrial products
throughput related to new and existing customer activity in the
Gulf Coast, offset by customer non-renewals and reduced activity at
the Partnership’s Gulf Coast terminals; (ii) a 1.0 mbpd increase in
crude oil throughput due to increased customer activity at the
Joliet terminal, offset by a reduction in customer activity at the
Pawnee and Portland terminals; (iii) a 2.6 mbpd increase in
distillates throughput as the result of recently executed new
customer agreements and increased existing customer activity at the
Partnership’s Baltimore, Chickasaw, Cleveland, Madison and
Pennsylvania terminals (except Altoona) and the execution of new
agreements with existing customers to throughput product in other
terminals within the Partnership’s terminalling network, which was
partially offset by reduced customer activity and customer
non-renewals in the Partnership’s Altoona, Blakeley, Chickasaw,
Mobile, Norfolk, Portland, Selma and Toledo terminals; (iv) a 6.6
mbpd increase in gasoline throughput as the result of recently
executed new customer agreements and increased existing customer
activity at the Partnership’s Baltimore, Cleveland, Madison,
Mechanicsburg, Selma and Toledo terminals and the execution of new
agreements with existing customers to throughput product in other
terminals within the Partnership’s terminalling network, which was
partially offset by reduced customer activity at the Altoona,
Brooklyn, Dupont, Norfolk, Selma, Toledo and Williamsport
terminals.
In July 2017, the Partnership declared a quarterly
cash distribution of $0.44 per unit, or $1.76 per unit on an
annualized basis, for the period from April 1, 2017 through June
30, 2017. The distribution will be paid on August 15, 2017 to
unitholders of record on August 8, 2017.
Joliet Terminal
The Partnership’s Joliet terminal is currently
supported by a terminal services agreement and a pipeline
throughput and deficiency agreement with ExxonMobil Oil Corporation
(“Exxon”), each with an initial three-year term that is currently
scheduled to expire in May 2018. Based on conversations with
representatives of Exxon, the Partnership does not expect Exxon to
exercise in August 2017 its option to renew the term of the Exxon
agreements on the current terms and conditions. The Partnership is
having on-going discussions with Exxon regarding the future use of
the Joliet terminal, and Exxon has expressed interest in using the
services of the Joliet terminal beyond the contract expiry date of
May 2018; however, the Partnership cannot make any assurances that
any such arrangement regarding the use of the terminal will be
entered into by the parties.
Conference Call
Arc Logistics will hold a conference call and
webcast to discuss the second quarter 2017 financial and operating
results on August 8, 2017, at 5:00 p.m. Eastern. Interested parties
may listen to the conference call by dialing (855) 433-0931.
International callers may access the conference call by dialing
(484) 756-4279. The call may also be accessed live over the
internet by visiting the “Investor Relations” page of the
Partnership’s website at www.arcxlp.com and will be available for
replay for approximately one month.
About Arc Logistics Partners
LP
Arc Logistics is a fee-based, growth-oriented
limited partnership that owns, operates, develops and acquires a
diversified portfolio of complementary energy logistics assets. Arc
Logistics is principally engaged in the terminalling, storage,
throughput and transloading of petroleum products and other
liquids. For more information, please visit www.arcxlp.com.
Forward-Looking Statements
Certain statements and information in this press
release constitute “forward-looking statements.” Certain
expressions including “believe,” “expect,” “intends,” or other
similar expressions are intended to identify the Partnership’s
current expectations, opinions, views or beliefs concerning future
developments and their potential effect on the Partnership. While
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) adverse economic,
capital markets and political conditions; (ii) changes in the
market place for the Partnership’s services; (iii) changes in
prices and supply and demand of crude oil and petroleum products;
(iv) actions and performance of the Partnership’s customers,
vendors or competitors; (v) nonrenewal, nonpayment or
nonperformance by the Partnership’s customers and the Partnership’s
ability to replace such contracts and/or customers; (vi) changes in
the cost of or availability of capital; (vi) unanticipated capital
expenditures in connection with the construction, repair or
replacement of the Partnership’s assets; (viii) operating hazards,
unforeseen weather events or matters beyond the Partnership’s
control; (ix) inability to consummate acquisitions, pending or
otherwise, on acceptable terms and successfully integrate acquired
businesses into the Partnership’s operations; (x) effects of
existing and future laws or governmental regulations; and (xi)
litigation. Additional information concerning these and other
factors that could cause the Partnership’s actual results to differ
from projected results can be found in the Partnership’s public
periodic filings with the Securities and Exchange Commission
(“SEC”), including the Partnership’s Annual Report on Form 10-K for
the year ended December 31, 2016, as filed with the SEC on March
14, 2017 and any updates thereto in the Partnership’s subsequent
quarterly reports on Form 10-Q and current reports on Forms
8-K. 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.
Non-GAAP Financial Measures
The Partnership defines Adjusted EBITDA as net
income before interest expense, income taxes and depreciation and
amortization expense, as further adjusted for other non-cash
charges and other charges that are not reflective of its ongoing
operations. Adjusted EBITDA is a non-GAAP financial measure that
management and external users of the Partnership’s consolidated
financial statements, such as industry analysts, investors, lenders
and rating agencies, may use to assess (i) the performance of the
Partnership’s assets without regard to the impact of financing
methods, capital structure or historical cost basis of the
Partnership’s assets; (ii) the viability of capital expenditure
projects and the overall rates of return on alternative investment
opportunities; (iii) the Partnership’s ability to make
distributions; (iv) the Partnership’s ability to incur and service
debt and fund capital expenditures; and (v) the Partnership’s
ability to incur additional expenses. The Partnership believes that
the presentation of Adjusted EBITDA provides useful information to
investors in assessing its financial condition and results of
operations.
The Partnership defines Distributable Cash Flow as
Adjusted EBITDA less (i) cash interest expense paid; (ii) cash
income taxes paid; (iii) maintenance capital expenditures paid; and
(iv) equity earnings from the Partnership’s interests in Gulf LNG
Holdings Group, LLC (the “LNG Interest”); plus (v) cash
distributions from the LNG Interest. Distributable Cash Flow is a
non-GAAP financial measure that management and external users of
the Partnership’s consolidated financial statements may use to
evaluate whether the Partnership is generating sufficient cash flow
to support distributions to its unitholders as well as to measure
the ability of the Partnership’s assets to generate cash sufficient
to support its indebtedness and maintain its operations.
The GAAP measure most directly comparable to
Adjusted EBITDA is net income and to Distributable Cash Flow is
cash flows from operating activities. Neither Adjusted EBITDA nor
Distributable Cash Flow should be considered an alternative to net
income or cash flows from operating activities, respectively.
Adjusted EBITDA and Distributable Cash Flow have important
limitations as analytical tools because they exclude some but not
all items that affect net income. You should not consider Adjusted
EBITDA or Distributable Cash Flow in isolation or as a substitute
for analysis of the Partnership’s results as reported under GAAP.
Additionally, because Adjusted EBITDA and Distributable Cash Flow
may be defined differently by other companies in the Partnership’s
industry, the Partnership’s definitions of Adjusted EBITDA and
Distributable Cash Flow may not be comparable to similarly titled
measures of other companies, thereby diminishing their utility.
Please see the reconciliation of net income to Adjusted EBITDA and
cash flows from operating activities to Distributable Cash Flow in
the accompanying tables.
ARC LOGISTICS PARTNERS LP |
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME |
(In thousands, except per unit
amounts) |
(Unaudited) |
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Third-party customers |
|
$ |
25,113 |
|
|
$ |
22,619 |
|
|
$ |
49,561 |
|
|
$ |
45,202 |
|
|
Related
parties |
|
|
1,474 |
|
|
|
3,625 |
|
|
|
2,951 |
|
|
|
7,108 |
|
|
|
|
|
26,587 |
|
|
|
26,244 |
|
|
|
52,512 |
|
|
|
52,310 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
8,873 |
|
|
|
8,228 |
|
|
|
17,746 |
|
|
|
16,914 |
|
|
Selling,
general and administrative |
|
|
2,712 |
|
|
|
3,103 |
|
|
|
5,951 |
|
|
|
7,026 |
|
|
Selling,
general and administrative - affiliate |
|
|
1,311 |
|
|
|
1,302 |
|
|
|
2,573 |
|
|
|
2,624 |
|
|
Depreciation |
|
|
4,486 |
|
|
|
3,720 |
|
|
|
8,942 |
|
|
|
7,372 |
|
|
Amortization |
|
|
3,589 |
|
|
|
3,672 |
|
|
|
7,261 |
|
|
|
7,370 |
|
|
(Gain)
Loss on revaluation of contingent consideration, net |
|
|
613 |
|
|
|
(659 |
) |
|
|
931 |
|
|
|
(848 |
) |
|
Total
expenses |
|
|
21,584 |
|
|
|
19,366 |
|
|
|
43,404 |
|
|
|
40,458 |
|
|
Operating (loss)
income |
|
|
5,003 |
|
|
|
6,878 |
|
|
|
9,108 |
|
|
|
11,852 |
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Equity
earnings from unconsolidated affiliate |
|
|
2,441 |
|
|
|
2,466 |
|
|
|
4,812 |
|
|
|
4,927 |
|
|
Interest
expense |
|
|
(2,870 |
) |
|
|
(2,386 |
) |
|
|
(5,524 |
) |
|
|
(4,753 |
) |
|
Total
other income, net |
|
|
(429 |
) |
|
|
80 |
|
|
|
(712 |
) |
|
|
174 |
|
|
Income
before income taxes |
|
|
4,574 |
|
|
|
6,958 |
|
|
|
8,396 |
|
|
|
12,026 |
|
|
Income
taxes |
|
|
- |
|
|
|
24 |
|
|
|
31 |
|
|
|
51 |
|
|
Net income |
|
|
4,574 |
|
|
|
6,934 |
|
|
|
8,365 |
|
|
|
11,975 |
|
|
Net
income attributable to non-controlling interests |
|
|
(1,346 |
) |
|
|
(2,084 |
) |
|
|
(2,674 |
) |
|
|
(3,894 |
) |
|
Net income attributable to partners' capital |
|
|
3,228 |
|
|
|
4,850 |
|
|
|
5,691 |
|
|
|
8,081 |
|
|
Other
comprehensive income (loss) |
|
|
233 |
|
|
|
(19 |
) |
|
|
681 |
|
|
|
(915 |
) |
|
Comprehensive (loss) income attributable to partners’
capital |
|
$ |
3,461 |
|
|
$ |
4,831 |
|
|
$ |
6,372 |
|
|
$ |
7,166 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
limited partner unit: |
|
|
|
|
|
|
|
|
|
Common
units (basic and diluted) |
|
$ |
0.15 |
|
|
$ |
0.24 |
|
|
$ |
0.27 |
|
|
$ |
0.39 |
|
|
Subordinated units (basic and diluted) |
|
$ |
- |
|
|
$ |
0.24 |
|
|
$ |
- |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
ARC LOGISTICS PARTNERS LP |
CONSOLIDATED BALANCE SHEETS |
(In thousands, except unit
amounts) |
(Unaudited) |
|
|
|
June 30, |
|
December 31, |
|
|
|
|
2017 |
|
|
2016 |
|
|
Assets: |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and
cash equivalents |
$ |
1,463 |
|
$ |
4,584 |
|
|
Trade
accounts receivable |
|
9,416 |
|
|
8,257 |
|
|
Due from
related parties |
|
473 |
|
|
1,321 |
|
|
Inventories |
|
370 |
|
|
397 |
|
|
Other
current assets |
|
2,406 |
|
|
2,060 |
|
|
Total
current assets |
|
14,128 |
|
|
16,619 |
|
|
Property,
plant and equipment, net |
|
395,172 |
|
|
395,511 |
|
|
Investment in unconsolidated affiliate |
|
77,036 |
|
|
75,716 |
|
|
Intangible assets, net |
|
110,610 |
|
|
117,716 |
|
|
Goodwill |
|
39,871 |
|
|
39,871 |
|
|
Other
assets |
|
2,347 |
|
|
2,980 |
|
|
Total
assets |
$ |
639,164 |
|
$ |
648,413 |
|
|
Liabilities and partners' capital: |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
$ |
3,473 |
|
$ |
2,455 |
|
|
Accrued
expenses |
|
6,225 |
|
|
5,684 |
|
|
Due to
general partner |
|
904 |
|
|
2,082 |
|
|
Other
liabilities |
|
2,911 |
|
|
2,961 |
|
|
Total
current liabilities |
|
13,513 |
|
|
13,182 |
|
|
Credit
facility |
|
252,000 |
|
|
249,000 |
|
|
Other
non-current liabilities |
|
19,320 |
|
|
19,805 |
|
|
Total
liabilities |
|
284,833 |
|
|
281,987 |
|
|
Commitments and contingencies |
|
|
|
|
|
Partners'
capital: |
|
|
|
|
|
General
partner interest |
|
- |
|
|
- |
|
|
Limited
partners' interest |
|
|
|
|
|
Common
units – (19,519,276 and 19,477,021 units issued and
outstanding at June 30, 2017 and December 31, 2016,
respectively) |
|
271,578 |
|
|
282,228 |
|
|
Non-controlling interests |
|
79,415 |
|
|
81,541 |
|
|
Accumulated other comprehensive (loss) income |
|
3,338 |
|
|
2,657 |
|
|
Total
partners' capital |
|
354,331 |
|
|
366,426 |
|
|
Total
liabilities and partners' capital |
$ |
639,164 |
|
$ |
648,413 |
|
|
|
|
|
|
|
ARC LOGISTICS PARTNERS LP |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
(Unaudited) |
|
|
|
|
Six months ended |
|
|
|
|
June 30, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Cash
flow from operating activities: |
|
|
|
|
|
|
Net
income |
|
$ |
8,365 |
|
|
$ |
11,975 |
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
|
|
|
Depreciation |
|
|
8,942 |
|
|
|
7,372 |
|
|
|
Amortization |
|
|
7,261 |
|
|
|
7,370 |
|
|
|
Equity
earnings from unconsolidated affiliate, net of distributions |
|
|
(786 |
) |
|
|
(168 |
) |
|
|
Amortization of deferred financing costs |
|
|
822 |
|
|
|
739 |
|
|
|
Unit-based compensation |
|
|
1,347 |
|
|
|
2,296 |
|
|
|
Net loss
(gain) on revaluation of contingent consideration |
|
|
931 |
|
|
|
(848 |
) |
|
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
Trade
accounts receivable |
|
|
(1,160 |
) |
|
|
(398 |
) |
|
|
Due from
related parties |
|
|
849 |
|
|
|
127 |
|
|
|
Inventories |
|
|
27 |
|
|
|
84 |
|
|
|
Other
current assets |
|
|
(346 |
) |
|
|
214 |
|
|
|
Accounts
payable |
|
|
614 |
|
|
|
1,353 |
|
|
|
Accrued
expenses |
|
|
(458 |
) |
|
|
(1,900 |
) |
|
|
Due to
general partner |
|
|
(1,178 |
) |
|
|
356 |
|
|
|
Other
liabilities |
|
|
(235 |
) |
|
|
(943 |
) |
|
|
Net cash
provided by operating activities |
|
|
24,995 |
|
|
|
27,629 |
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
|
Capital
expenditures |
|
|
(6,879 |
) |
|
|
(11,642 |
) |
|
|
Investment in unconsolidated affiliate |
|
|
(6 |
) |
|
|
- |
|
|
|
Net cash
paid for acquisitions |
|
|
- |
|
|
|
(8,000 |
) |
|
|
Net cash
used in investing activities |
|
|
(6,885 |
) |
|
|
(19,642 |
) |
|
|
Cash
flows from financing activities: |
|
|
|
|
|
|
Distributions |
|
|
(17,158 |
) |
|
|
(16,948 |
) |
|
|
Deferred
financing costs |
|
|
(189 |
) |
|
|
(583 |
) |
|
|
Repayments to credit facility |
|
|
(11,000 |
) |
|
|
- |
|
|
|
Proceeds
from credit facility |
|
|
14,000 |
|
|
|
17,250 |
|
|
|
Payments
of earn-out liability |
|
|
(1,554 |
) |
|
|
(683 |
) |
|
|
Distributions paid to non-controlling interests |
|
|
(4,800 |
) |
|
|
(5,400 |
) |
|
|
Net settlement withholding taxes related to stock based
compensation |
|
(202 |
) |
|
|
- |
|
|
|
Distribution equivalent rights paid on unissued units |
|
|
(328 |
) |
|
|
(504 |
) |
|
|
Net cash
used in financing activities |
|
|
(21,231 |
) |
|
|
(6,868 |
) |
|
|
Net
decrease in cash and cash equivalents |
|
|
(3,121 |
) |
|
|
1,119 |
|
|
|
Cash and
cash equivalents, beginning of period |
|
|
4,584 |
|
|
|
5,870 |
|
|
|
Cash and
cash equivalents, end of period |
|
$ |
1,463 |
|
|
$ |
6,989 |
|
|
|
|
|
|
|
|
|
ARC LOGISTICS PARTNERS LP |
RECONCILIATIONS OF ADJUSTED EBITDA AND
DISTRIBUTABLE CASH FLOW |
(In thousands) |
(Unaudited) |
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
3,228 |
|
|
$ |
4,850 |
|
|
$ |
5,691 |
|
|
$ |
8,081 |
|
|
Income
taxes |
|
|
- |
|
|
|
24 |
|
|
|
31 |
|
|
|
51 |
|
|
Interest
expense |
|
|
2,870 |
|
|
|
2,386 |
|
|
|
5,524 |
|
|
|
4,753 |
|
|
Depreciation (a) |
|
|
4,007 |
|
|
|
3,265 |
|
|
|
7,985 |
|
|
|
6,466 |
|
|
Amortization (a) |
|
|
3,005 |
|
|
|
3,055 |
|
|
|
6,061 |
|
|
|
6,136 |
|
|
One-time
non-recurring expenses (b) |
|
|
- |
|
|
|
42 |
|
|
|
- |
|
|
|
601 |
|
|
Non-cash
unit-based compensation |
|
|
529 |
|
|
|
1,207 |
|
|
|
1,368 |
|
|
|
2,294 |
|
|
Non-cash
loss (gain) on revaluation of contingent consideration, net
(a)(c) |
|
|
368 |
|
|
|
(395 |
) |
|
|
558 |
|
|
|
(509 |
) |
|
Non-cash
deferred rent expense (d) |
|
|
65 |
|
|
|
65 |
|
|
|
131 |
|
|
|
131 |
|
|
Adjusted EBITDA |
|
$ |
14,072 |
|
|
$ |
14,499 |
|
|
$ |
27,349 |
|
|
$ |
28,004 |
|
|
Cash
interest expense |
|
|
(2,452 |
) |
|
|
(2,182 |
) |
|
|
(4,725 |
) |
|
|
(4,320 |
) |
|
Cash
income taxes |
|
|
- |
|
|
|
(24 |
) |
|
|
(31 |
) |
|
|
(51 |
) |
|
Maintenance capital expenditures |
|
|
(853 |
) |
|
|
(2,296 |
) |
|
|
(1,949 |
) |
|
|
(4,402 |
) |
|
Equity
earnings from the LNG Interest |
|
|
(2,441 |
) |
|
|
(2,466 |
) |
|
|
(4,812 |
) |
|
|
(4,927 |
) |
|
Cash
distributions received from the LNG Interest |
|
|
2,374 |
|
|
|
2,581 |
|
|
|
4,026 |
|
|
|
4,759 |
|
|
Distributable Cash Flow |
|
$ |
10,700 |
|
|
$ |
10,112 |
|
|
$ |
19,858 |
|
|
$ |
19,063 |
|
|
Maintenance capital expenditures |
|
|
853 |
|
|
|
2,296 |
|
|
|
1,949 |
|
|
|
4,402 |
|
|
Distributable cash flow attributable to non-controlling
interests |
|
|
2,408 |
|
|
|
2,627 |
|
|
|
4,831 |
|
|
|
5,355 |
|
|
Changes
in operating assets and liabilities |
|
|
(667 |
) |
|
|
(255 |
) |
|
|
(1,885 |
) |
|
|
(1,106 |
) |
|
One-time
non-recurring expenses (b) |
|
|
- |
|
|
|
(42 |
) |
|
|
- |
|
|
|
(601 |
) |
|
Other
non-cash adjustments |
|
|
157 |
|
|
|
369 |
|
|
|
242 |
|
|
|
516 |
|
|
Net cash provided by operating activities |
|
$ |
13,451 |
|
|
$ |
15,107 |
|
|
$ |
24,995 |
|
|
$ |
27,629 |
|
|
|
|
|
|
|
|
|
|
|
|
(a) The (gain) loss on revaluation of contingent
consideration, depreciation and amortization have been adjusted to
remove the non-controlling interest portion related to the GE
Energy Financial Services affiliate’s ownership interest in Arc
Terminals Joliet Holdings LLC. |
(b) The one-time non-recurring expenses relate to amounts
incurred as due diligence expenses from acquisitions and other
infrequent or unusual expenses incurred. |
(c) The non-cash (gain) loss on revaluation of contingent
consideration is related to the earn-out obligations incurred as a
part of the Joliet terminal acquisition. |
(d) The non-cash deferred rent expense relates to the
accounting treatment for the Portland terminal lease transaction
termination fees. |
|
ARC LOGISTICS PARTNERS LP |
SUPPLEMENTAL INFORMATION |
(In thousands, except operating
data) |
(Unaudited) |
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Selected Operating Data: |
|
|
|
|
|
|
|
|
|
|
Storage capacity
(bbls) |
|
|
7,842,600 |
|
|
|
7,741,100 |
|
|
|
7,842,600 |
|
|
|
7,741,100 |
|
|
|
Throughput (bpd) |
|
|
174,418 |
|
|
|
162,480 |
|
|
|
166,988 |
|
|
|
153,778 |
|
|
|
% Take or pay
revenue |
|
|
82 |
% |
|
|
84 |
% |
|
|
82 |
% |
|
|
85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput Data (bpd): |
|
|
|
|
|
|
|
|
|
|
Asphalts
and industrial products |
|
|
20,204 |
|
|
|
18,485 |
|
|
|
18,772 |
|
|
|
16,468 |
|
|
|
Crude
oil |
|
|
76,238 |
|
|
|
75,237 |
|
|
|
72,994 |
|
|
|
72,716 |
|
|
|
Distillates |
|
|
28,055 |
|
|
|
25,450 |
|
|
|
26,141 |
|
|
|
22,311 |
|
|
|
Gasoline |
|
|
49,921 |
|
|
|
43,308 |
|
|
|
49,081 |
|
|
|
42,283 |
|
|
|
Total Throughput |
|
|
174,418 |
|
|
|
162,480 |
|
|
|
166,988 |
|
|
|
153,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Summary: |
|
|
|
|
|
|
|
|
|
|
Minimum storage & throughput services fees |
$ |
21,495 |
|
|
$ |
21,806 |
|
|
$ |
42,414 |
|
|
$ |
43,824 |
|
|
|
Excess throughput & handling fees |
|
3,559 |
|
|
|
2,995 |
|
|
|
6,876 |
|
|
|
5,650 |
|
|
|
Total storage &
throughput fees |
|
|
25,054 |
|
|
|
24,801 |
|
|
|
49,290 |
|
|
|
49,474 |
|
|
|
Ancillary services
fees |
|
|
1,533 |
|
|
|
1,443 |
|
|
|
3,222 |
|
|
|
2,836 |
|
|
|
Total revenue |
|
$ |
26,587 |
|
|
$ |
26,244 |
|
|
$ |
52,512 |
|
|
$ |
52,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures Summary: |
|
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures |
|
$ |
853 |
|
|
$ |
2,296 |
|
|
$ |
1,949 |
|
|
$ |
4,402 |
|
|
|
Expansion capital
expenditures |
|
|
3,800 |
|
|
|
4,850 |
|
|
|
6,654 |
|
|
|
9,059 |
|
|
|
Total
capital expenditures |
|
$ |
4,653 |
|
|
$ |
7,146 |
|
|
$ |
8,603 |
|
|
$ |
13,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:
IR@arcxlp.com
www.arcxlp.com
212-993-1290
Grafico Azioni ARC LOGISTICS PARTNERS LP (NYSE:ARCX)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni ARC LOGISTICS PARTNERS LP (NYSE:ARCX)
Storico
Da Set 2023 a Set 2024