Arc Logistics Partners LP (NYSE:ARCX) ("Arc Logistics" or the
"Partnership") today reported its financial and operating results
for the third quarter ended September 30, 2017.
During the third quarter of 2017, the
Partnership accomplished the following:
- Realized throughput of 181.4 thousand barrels per day
(“mbpd”)
- Reported revenues, net income and Adjusted EBITDA of $27.3
million, $1.2 million and $14.7 million, respectively
- Invested $5.9 million of expansion capital expenditures to
support existing, new and future customer initiatives
- Generated cash flows from operating activities of $13.5 million
and Distributable Cash Flow of $10.2 million
- Declared a quarterly cash distribution of $0.44 per unit for
the third quarter ended September 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.
Additionally, as previously announced, the
Partnership, Arc Logistics GP LLC (“Arc GP”), Lightfoot
Capital Partners GP LLC (“LCP GP”), Lightfoot Capital
Partners, LP (“LCP LP” and, together with LCP GP, “Lightfoot”)
entered into the Purchase Agreement and Plan of Merger (the “Merger
Agreement”), dated as of August 29, 2017, with Zenith Energy
U.S., L.P. and certain of its affiliates (together with such
affiliates, “Zenith”), a portfolio company of Warburg Pincus,
pursuant to which Zenith will acquire Arc GP, the general
partner of the Partnership (the “GP Transfer”), and all of the
outstanding common units in the Partnership (the “Merger”
and, together with the GP Transfer, the “Proposed
Transaction”). For additional information, please see
the Partnership’s definitive proxy statement filed with the
Securities and Exchange Commission (the “SEC”) on October 30,
2017.
Third Quarter 2017 Operational and
Financial Results
The Partnership’s third quarter 2017 reported
revenues, net income and Adjusted EBITDA of $27.3 million, $1.2
million and $14.7 million, respectively, represents an increase
over the Partnership’s third quarter 2016 reported revenues of
$26.7 million and a decrease from the Partnership’s third quarter
2016 reported net income and Adjusted EBITDA of $5.8 million and
$14.9 million, respectively. Operating income decreased by $2.4
million to $3.4 million for the third quarter 2017 when compared to
the third quarter 2016 operating income of $5.8 million,
principally due to the following:
- Revenues increased by $0.6 million, or 2%, to $27.3 million as
compared to $26.7 million, due to (i) a $0.3 million increase in
total storage and throughput services fees and (ii) a $0.3 million
increase in ancillary services fees.
- Total storage and throughput services fees increased by $0.3
million, or 1%, to $25.5 million. This increase was attributable to
excess throughput and handling fees, which 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, Joliet, Madison, Mechanicsburg,
Mobile, Mobile-Methanol, Norfolk, 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, Norfolk,
Selma, Pawnee and Spartanburg terminals.
- Ancillary services fees increased by $0.3 million, or 23%, to
$1.8 million primarily due to new customer agreements or agreements
with existing customers 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
Baltimore, Brooklyn, Dupont, Joliet, Madison, Mechanicsburg,
Mobile, Mobile-Methanol, Norfolk, Portland, Selma, Toledo and
Williamsport terminals; partially offset by a decrease in such
ancillary services or customer non-renewals at the Partnership’s
Altoona, Blakeley, Brooklyn, Chickasaw, Cleveland, Mechanicsburg,
Pawnee, Selma, Spartanburg and Toledo terminals.
- Operating expenses increased by $0.7 million, or 8%, to $8.8
million as compared to $8.2 million, due to: (i) a $0.1 million
increase attributable to increased throughput activity including
additive, contract labor, utility and supply expenses; (ii) a $0.5
million increase in repair and maintenance expenses; and (iii) an
increase in property taxes of $0.3 million; partially offset by a
reduction in insurance expense of $0.2 million.
- Selling, general and administrative expenses increased by
approximately $1.9 million, or 42%, to $6.4 million as compared to
$4.5 million, due to a $2.4 million increase in due diligence and
transaction related expenses associated with the Proposed
Transaction offset by a $0.5 million decrease in unit-based
compensation expenses.
- Depreciation expense increased by $0.7 million, or 16%, to $4.6
million as compared to $4.0 million, primarily due to the impact of
the expansion projects 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 3%, to $3.5
million, primarily due to an intangible asset related to the Mobile
terminal acquisition becoming fully amortized in the first quarter
of 2016.
As of September 30, 2017, the Partnership's
storage capacity was approximately 7.8 million barrels, which
represents an increase of 1,500 barrels, when compared to the
Partnership’s capacity at September 30, 2016. The increase in
storage capacity is related to the completion of three new
500-barrel bio-diesel tanks at our Altoona, Dupont and
Mechanicsburg terminals.
The Partnership’s throughput activity increased
by 10.2 mbpd, or 6%, to 181.4 mbpd during the third quarter of 2017
compared to the third quarter of 2016. The increase was due to: (i)
a 2.7 mbpd increase in asphalt and industrial products throughput
related to new and existing customer activity at the Partnership's
Mobile and Mobile-Methanol terminals, offset by customer
non-renewals and reduced activity at the Partnership’s Blakeley and
Chickasaw terminals; (ii) a 6.7 mbpd increase in distillates
throughput as the result of recently executed new customer
agreements and increased existing commercial activity at the
Partnership’s Baltimore, Chickasaw, Cleveland, Madison, Norfolk,
Selma, Spartanburg, Toledo and Pennsylvania terminals and the
execution of new agreements with existing customers to throughput
product at the Partnership’s Baltimore, Mobile, Norfolk, Selma and
Pennsylvania terminals, which was partially offset by reduced
customer activity and customer non-renewals of short term
agreements at the Partnership’s Baltimore, Dupont, Gulf Coast,
Selma and Toledo terminals; (iii) a 1.3 mbpd increase in gasoline
throughput as the result of a recently executed new customer
agreement and increased existing customer activity at the
Partnership’s Baltimore, Cleveland, Madison, Mechanicsburg,
Portland, Selma and Toledo terminals and the execution of new
agreements with existing customers to throughput product in other
terminals within the Partnership’s terminal network, which was
partially offset by a decrease related to customer non-renewals or
reduced customer activity at the Altoona, Brooklyn, Dupont,
Norfolk, Selma, Spartanburg and Williamsport terminals; (iv) offset
by a 0.5 mbpd decrease in crude oil throughput as the result of a
6.2 mbpd decrease in throughput at the Partnership’s Pawnee
terminal offset by an increase of 5.7 mbpd of throughput at the
Partnership’s Joliet terminal.
In October 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 July 1, 2017 through
September 30, 2017. The distribution will be paid on November
15, 2017 to unitholders of record on November 8, 2017.
From the date of the Merger Agreement until the
Proposed Transaction becomes effective, the Partnership plans to
declare and pay quarterly distributions in the ordinary course of
business and consistent with past practices. Assuming that the
Merger has not closed by January 26, 2018, the Partnership
expects that it would declare a distribution associated with the
quarter ended December 31, 2017 on or about January 26, 2018,
to be paid on or about February 15, 2018 to the Partnership’s
common unitholders of record as of February 8, 2018. If,
as anticipated, the Merger closes prior to the record date for the
distribution associated with the fourth quarter of 2017, then the
Partnership’s common unitholders as of immediately prior to the
closing of the Merger will not receive any distribution associated
with the fourth quarter of 2017. If, alternatively, the Merger
does not close by the record date for the distribution associated
with the fourth quarter of 2017, then the Partnership plans to pay
the fourth quarter distribution, on or around February 15, 2018, to
the Partnership’s common unitholders of record as of the record
date applicable to such distribution, irrespective of whether the
Merger closes thereafter or whether Arc GP or Zenith terminates the
Merger Agreement after February 7, 2018, subject to extension
at Zenith’s election to March 1, 2018, in certain
circumstances as specified in the Merger Agreement.
Conference Call
Arc Logistics will hold a conference call and
webcast to discuss the third quarter 2017 financial and operating
results on November 7, 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.
Additional Information for Unitholders
This communication may be deemed to be
solicitation material in respect of the Proposed Transaction. Arc
Logistics has filed with the SEC and will furnish to Arc Logistics’
unitholders a proxy statement and other relevant documents. BEFORE
MAKING ANY VOTING DECISION, ARC LOGISTICS’ UNITHOLDERS ARE URGED TO
READ THE PROXY STATEMENT AND ANY OTHER DOCUMENTS TO BE FILED WITH
THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED
BY REFERENCE IN THE PROXY STATEMENT BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and unitholders will be able to
obtain, free of charge, a copy of the proxy statement and other
relevant documents filed with the SEC from the SEC’s website at
http://www.sec.gov. In addition, the proxy statement and Arc
Logistics’ Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, Current Reports on Form 8-K and amendments to those reports
filed or furnished pursuant to Section 13(a) or 14(d) of the
Securities Exchange Act of 1934, as amended, will be available free
of charge through Arc Logistics’ website at http://arcxlp.com as
soon as reasonably practicable after they are electronically filed
with, or furnished to, the SEC.
Participants in the Solicitation
Arc Logistics and its directors and executive
officers may be deemed to be participants in the solicitation of
proxies from the unitholders of Arc Logistics in connection with
the Proposed Transaction. Information about the directors and
executive officers of Arc Logistics is set forth in Arc Logistics’
Annual Report on Form 10-K filed with the SEC for the year ended
December 31, 2016. This document can be obtained free of charge
from the sources indicated above. Other information regarding the
participants in the proxy solicitation and a description of their
direct and indirect interests, by security holdings or otherwise,
will be contained in the proxy statement and other relevant
materials to be filed with the SEC when they become available.
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; (x)
litigation and (xi) the Partnership’s ability to complete the
Proposed Transaction. There can be no guarantee that the Proposed
Transaction will be completed, or if it is completed, the time
frame in which it will be completed. The Proposed Transaction is
subject to the satisfaction of certain conditions contained in the
merger agreement related thereto. The failure to complete the
Proposed Transaction could disrupt certain of the Partnership’s
plans, operations, business and employee relationships. 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 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 and the
Partnership’s definitive proxy statement filed with the SEC on
October 30, 2017. 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.
Investor Contact: IR@arcxlp.com
www.arcxlp.com212-993-1290
ARC LOGISTICS PARTNERS LP |
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME |
(In thousands, except per unit
amounts) |
(Unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Revenues: |
|
|
|
|
|
|
|
Third-party customers |
$ |
25,859 |
|
|
$ |
22,933 |
|
|
$ |
75,420 |
|
|
$ |
68,136 |
|
Related
parties |
|
1,431 |
|
|
|
3,739 |
|
|
|
4,382 |
|
|
|
10,847 |
|
|
|
27,290 |
|
|
|
26,672 |
|
|
|
79,802 |
|
|
|
78,983 |
|
Expenses: |
|
|
|
|
|
|
|
Operating
expenses |
|
8,848 |
|
|
|
8,192 |
|
|
|
26,595 |
|
|
|
25,107 |
|
Selling,
general and administrative |
|
4,999 |
|
|
|
3,141 |
|
|
|
10,950 |
|
|
|
10,168 |
|
Selling,
general and administrative - affiliate |
|
1,368 |
|
|
|
1,342 |
|
|
|
3,941 |
|
|
|
3,965 |
|
Depreciation |
|
4,623 |
|
|
|
3,972 |
|
|
|
13,565 |
|
|
|
11,345 |
|
Amortization |
|
3,547 |
|
|
|
3,672 |
|
|
|
10,808 |
|
|
|
11,042 |
|
(Gain)
Loss on revaluation of contingent consideration, net |
|
534 |
|
|
|
545 |
|
|
|
1,465 |
|
|
|
(303 |
) |
Total
expenses |
|
23,919 |
|
|
|
20,864 |
|
|
|
67,324 |
|
|
|
61,324 |
|
Operating (loss)
income |
|
3,371 |
|
|
|
5,808 |
|
|
|
12,478 |
|
|
|
17,659 |
|
Other income (expense): |
|
|
|
|
|
|
Equity
earnings from unconsolidated affiliate |
|
2,431 |
|
|
|
2,512 |
|
|
|
7,243 |
|
|
|
7,439 |
|
Gain
(Loss) on disposal of property and equipment |
|
(1,484 |
) |
|
|
- |
|
|
|
(1,484 |
) |
|
|
- |
|
Other
Income |
|
60 |
|
|
|
1 |
|
|
|
60 |
|
|
|
2 |
|
Interest
expense |
|
(3,132 |
) |
|
|
(2,481 |
) |
|
|
(8,656 |
) |
|
|
(7,234 |
) |
Total
other income (expense) |
|
(2,125 |
) |
|
|
32 |
|
|
|
(2,837 |
) |
|
|
207 |
|
Income
before income taxes |
|
1,246 |
|
|
|
5,840 |
|
|
|
9,641 |
|
|
|
17,866 |
|
Income
taxes |
|
55 |
|
|
|
49 |
|
|
|
86 |
|
|
|
101 |
|
Net income |
|
1,191 |
|
|
|
5,791 |
|
|
|
9,555 |
|
|
|
17,765 |
|
Net
income attributable to non-controlling interests |
|
(1,047 |
) |
|
|
(1,659 |
) |
|
|
(3,720 |
) |
|
|
(5,553 |
) |
Net income attributable to partners'
capital |
|
144 |
|
|
|
4,132 |
|
|
|
5,835 |
|
|
|
12,212 |
|
Other
comprehensive income (loss) |
|
475 |
|
|
|
831 |
|
|
|
1,156 |
|
|
|
(84 |
) |
Comprehensive (loss) income attributable
to partners’ capital |
$ |
619 |
|
|
$ |
4,963 |
|
|
$ |
6,991 |
|
|
$ |
12,128 |
|
|
|
|
|
|
|
|
|
Earnings per limited partner unit: |
|
|
|
|
|
|
Common
units (basic and diluted) |
$ |
0.00 |
|
|
$ |
0.20 |
|
|
$ |
0.27 |
|
|
$ |
0.59 |
|
Subordinated units (basic and diluted) |
$ |
- |
|
|
$ |
0.20 |
|
|
$ |
- |
|
|
$ |
0.59 |
|
ARC LOGISTICS PARTNERS LP |
CONSOLIDATED BALANCE SHEETS |
(In thousands, except unit
amounts) |
(Unaudited) |
|
|
September 30, |
|
December 31, |
|
2017 |
|
2016 |
Assets: |
|
|
|
Current
assets: |
|
|
|
Cash and
cash equivalents |
$ |
2,677 |
|
$ |
4,584 |
Trade
accounts receivable |
|
11,501 |
|
|
8,257 |
Due from
related parties |
|
480 |
|
|
1,321 |
Inventories |
|
368 |
|
|
397 |
Other
current assets |
|
2,444 |
|
|
2,060 |
Total
current assets |
|
17,470 |
|
|
16,619 |
Property,
plant and equipment, net |
|
396,198 |
|
|
395,511 |
Investment in unconsolidated affiliate |
|
77,800 |
|
|
75,716 |
Intangible assets, net |
|
107,140 |
|
|
117,716 |
Goodwill |
|
39,871 |
|
|
39,871 |
Other
assets |
|
1,935 |
|
|
2,980 |
Total
assets |
$ |
640,414 |
|
$ |
648,413 |
Liabilities and partners' capital: |
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
6,298 |
|
$ |
2,455 |
Accrued
expenses |
|
5,689 |
|
|
5,684 |
Due to
general partner |
|
2,762 |
|
|
2,082 |
Other
liabilities |
|
3,523 |
|
|
2,961 |
Total
current liabilities |
|
18,272 |
|
|
13,182 |
Credit
facility |
|
256,000 |
|
|
249,000 |
Other
non-current liabilities |
|
19,272 |
|
|
19,805 |
Total
liabilities |
|
293,544 |
|
|
281,987 |
Commitments and contingencies |
|
|
Partners'
capital: |
|
|
|
General
partner interest |
|
- |
|
|
- |
Limited partners' interest |
|
|
Common
units – (19,545,944 and 19,477,021 units issued and
outstanding at September 30, 2017 and December 31, 2016,
respectively) |
|
263,421 |
|
|
282,228 |
Non-controlling interests |
|
79,636 |
|
|
81,541 |
Accumulated other comprehensive (loss) income |
|
3,813 |
|
|
2,657 |
Total
partners' capital |
|
346,870 |
|
|
366,426 |
Total
liabilities and partners' capital |
$ |
640,414 |
|
$ |
648,413 |
ARC LOGISTICS PARTNERS LP |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
(Unaudited) |
|
|
Nine months ended |
|
September 30, |
|
2017 |
|
|
2016 |
|
Cash
flow from operating activities: |
|
|
|
Net
income |
$ |
9,555 |
|
|
$ |
17,765 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
Depreciation |
|
13,565 |
|
|
|
11,345 |
|
Amortization |
|
10,808 |
|
|
|
11,042 |
|
Equity
earnings from unconsolidated affiliate, net of distributions |
|
(1,153 |
) |
|
|
(120 |
) |
Amortization of deferred financing costs |
|
1,258 |
|
|
|
1,145 |
|
Unit-based compensation |
|
1,847 |
|
|
|
3,523 |
|
Net loss
(gain) on revaluation of contingent consideration |
|
1,465 |
|
|
|
(303 |
) |
Not loss
(gain) on disposal of property and equipment |
|
1,484 |
|
|
|
- |
|
Trade
accounts receivable |
|
(3,125 |
) |
|
|
583 |
|
Due from
related parties |
|
841 |
|
|
|
(34 |
) |
Inventories |
|
29 |
|
|
|
80 |
|
Other
current assets |
|
(384 |
) |
|
|
(442 |
) |
Accounts
payable |
|
952 |
|
|
|
(573 |
) |
Accrued
expenses |
|
295 |
|
|
|
(227 |
) |
Due to
general partner |
|
680 |
|
|
|
1,347 |
|
Other
liabilities |
|
428 |
|
|
|
(1,829 |
) |
Net cash provided by operating activities |
|
38,545 |
|
|
|
43,302 |
|
Cash
flows from investing activities: |
|
|
|
Capital
expenditures |
|
(12,966 |
) |
|
|
(20,902 |
) |
Investment in unconsolidated affiliate |
|
(6 |
) |
|
|
- |
|
Net cash
paid for acquisitions |
|
- |
|
|
|
(8,000 |
) |
Net cash used in investing activities |
|
(12,972 |
) |
|
|
(28,902 |
) |
Cash
flows from financing activities: |
|
|
|
Distributions |
|
(25,758 |
) |
|
|
(25,438 |
) |
Deferred
financing costs |
|
(213 |
) |
|
|
(584 |
) |
Repayments to credit facility |
|
(15,000 |
) |
|
|
(3,313 |
) |
Proceeds
from credit facility |
|
22,000 |
|
|
|
23,250 |
|
Equity
contribution from non-controlling interests |
|
1,575 |
|
|
|
- |
|
Payments
of earn-out liability |
|
(2,153 |
) |
|
|
(1,028 |
) |
Distributions paid to non-controlling interests |
|
(7,200 |
) |
|
|
(8,000 |
) |
Net
settlement withholding taxes related to stock based
compensation |
|
(202 |
) |
|
|
- |
|
Distribution equivalent rights paid on unissued units |
|
(529 |
) |
|
|
(763 |
) |
Net cash used in financing activities |
|
(27,480 |
) |
|
|
(15,876 |
) |
Net
decrease in cash and cash equivalents |
|
(1,907 |
) |
|
|
(1,476 |
) |
Cash and
cash equivalents, beginning of period |
|
4,584 |
|
|
|
5,870 |
|
Cash and
cash equivalents, end of period |
$ |
2,677 |
|
|
$ |
4,394 |
|
ARC LOGISTICS PARTNERS LP |
RECONCILIATIONS OF ADJUSTED EBITDA AND
DISTRIBUTABLE CASH FLOW |
(In thousands) |
(Unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
Net Income |
$ |
144 |
|
|
$ |
4,132 |
|
|
$ |
5,835 |
|
|
$ |
12,212 |
|
Income
taxes |
|
55 |
|
|
|
49 |
|
|
|
86 |
|
|
|
101 |
|
Interest
expense |
|
3,132 |
|
|
|
2,481 |
|
|
|
8,656 |
|
|
|
7,234 |
|
Depreciation (a) |
|
4,143 |
|
|
|
3,512 |
|
|
|
12,128 |
|
|
|
9,979 |
|
Amortization (a) |
|
2,980 |
|
|
|
3,055 |
|
|
|
9,041 |
|
|
|
9,192 |
|
Loss on
disposal of property and equipment (a) |
|
891 |
|
|
|
- |
|
|
|
891 |
|
|
|
- |
|
One-time
non-recurring expenses (b) |
|
2,437 |
|
|
|
15 |
|
|
|
2,437 |
|
|
|
616 |
|
Non-cash
unit-based compensation |
|
518 |
|
|
|
1,233 |
|
|
|
1,886 |
|
|
|
3,528 |
|
Non-cash
loss (gain) on revaluation of contingent consideration, net
(a)(c) |
|
320 |
|
|
|
326 |
|
|
|
879 |
|
|
|
(183 |
) |
Non-cash
deferred rent expense (d) |
|
65 |
|
|
|
65 |
|
|
|
196 |
|
|
|
196 |
|
Adjusted EBITDA |
$ |
14,685 |
|
|
$ |
14,868 |
|
|
$ |
42,035 |
|
|
$ |
42,875 |
|
Cash
interest expense |
|
(2,665 |
) |
|
|
(2,280 |
) |
|
|
(7,390 |
) |
|
|
(6,601 |
) |
Cash
income taxes |
|
(55 |
) |
|
|
(49 |
) |
|
|
(86 |
) |
|
|
(100 |
) |
Maintenance capital expenditures |
|
(1,366 |
) |
|
|
(2,583 |
) |
|
|
(3,314 |
) |
|
|
(6,985 |
) |
Equity
earnings from the LNG Interest |
|
(2,431 |
) |
|
|
(2,512 |
) |
|
|
(7,243 |
) |
|
|
(7,439 |
) |
Cash
distributions received from the LNG Interest |
|
2,064 |
|
|
|
2,560 |
|
|
|
6,090 |
|
|
|
7,319 |
|
Distributable Cash Flow |
$ |
10,232 |
|
|
$ |
10,004 |
|
|
$ |
30,092 |
|
|
$ |
29,069 |
|
Maintenance capital expenditures |
|
1,366 |
|
|
|
2,583 |
|
|
|
3,314 |
|
|
|
6,985 |
|
Distributable cash flow attributable to non-controlling
interests |
|
2,093 |
|
|
|
2,737 |
|
|
|
6,924 |
|
|
|
8,770 |
|
Changes
in operating assets and liabilities |
|
1,601 |
|
|
|
11 |
|
|
|
(285 |
) |
|
|
(1,095 |
) |
One-time
non-recurring expenses (b) |
|
(2,437 |
) |
|
|
(15 |
) |
|
|
(2,437 |
) |
|
|
(616 |
) |
Other
non-cash adjustments |
|
693 |
|
|
|
352 |
|
|
|
937 |
|
|
|
189 |
|
Net cash provided by operating activities |
$ |
13,548 |
|
|
$ |
15,672 |
|
|
$ |
38,545 |
|
|
$ |
43,302 |
|
___________(a) The (gain) loss on revaluation of contingent
consideration, loss on disposal of property and equipment,
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 |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Selected Operating Data: |
|
|
|
|
|
|
Storage capacity
(bbls) |
|
7,842,600 |
|
|
|
7,841,100 |
|
|
|
7,842,600 |
|
|
|
7,841,100 |
|
Throughput (bpd) |
|
181,387 |
|
|
|
171,170 |
|
|
|
171,841 |
|
|
|
159,689 |
|
% Take or pay
revenue |
|
81 |
% |
|
|
84 |
% |
|
|
81 |
% |
|
|
85 |
% |
|
|
|
|
|
|
|
|
Throughput Data (bpd): |
|
|
|
|
|
|
|
Asphalts
and industrial products |
|
17,570 |
|
|
|
14,879 |
|
|
|
18,367 |
|
|
|
15,935 |
|
Crude
oil |
|
87,379 |
|
|
|
87,877 |
|
|
|
77,842 |
|
|
|
77,806 |
|
Distillates |
|
26,423 |
|
|
|
19,717 |
|
|
|
26,236 |
|
|
|
21,465 |
|
Gasoline |
|
50,015 |
|
|
|
48,697 |
|
|
|
49,396 |
|
|
|
44,483 |
|
Total Throughput |
|
181,387 |
|
|
|
171,170 |
|
|
|
171,841 |
|
|
|
159,689 |
|
|
|
|
|
|
|
|
|
Revenue Summary: |
|
|
|
|
|
|
Minimum
storage & throughput services fees |
$ |
21,848 |
|
|
$ |
21,908 |
|
|
$ |
64,262 |
|
|
$ |
65,733 |
|
Excess
throughput & handling fees |
|
3,641 |
|
|
|
3,299 |
|
|
|
10,517 |
|
|
|
8,949 |
|
Total storage &
throughput fees |
|
25,489 |
|
|
|
25,207 |
|
|
|
74,779 |
|
|
|
74,682 |
|
Ancillary services
fees |
|
1,801 |
|
|
|
1,465 |
|
|
|
5,023 |
|
|
|
4,301 |
|
Total revenue |
$ |
27,290 |
|
|
$ |
26,672 |
|
|
$ |
79,802 |
|
|
$ |
78,983 |
|
|
|
|
|
|
|
|
|
Capital Expenditures Summary: |
|
|
|
|
|
|
Maintenance capital
expenditures |
$ |
1,366 |
|
|
$ |
2,583 |
|
|
$ |
3,314 |
|
|
$ |
6,985 |
|
Expansion capital
expenditures |
|
5,888 |
|
|
|
3,493 |
|
|
|
12,542 |
|
|
|
12,552 |
|
Total
capital expenditures |
$ |
7,254 |
|
|
$ |
6,076 |
|
|
$ |
15,856 |
|
|
$ |
19,537 |
|
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