Arc Logistics Partners LP ("Arc Logistics" or the "Partnership"), a
Delaware limited partnership (NYSE:ARCX) today reported its
financial and operating results for the fourth quarter and fiscal
year ended December 31, 2016.
During the fourth quarter of 2016, the
Partnership accomplished the following:
- Realized throughput of 154.6 thousand barrels per day
(“mbpd”)
- Reported revenues, net income and Adjusted EBITDA of $26.4
million, $4.1 million and $13.9 million, respectively
- Invested $2.8 million of expansion capital expenditures to
support existing, new and future customer initiatives
- Generated cash flows from operating activities of $12.5 million
and Distributable Cash Flow of $11.0 million
- Declared a quarterly cash distribution of $0.44 per unit for
the fourth quarter ended December 31, 2016
For the full year ended December 31, 2016, the
Partnership accomplished the following:
- Realized throughput of 158.4 mbpd
- Reported revenues, net income and Adjusted EBITDA of $105.4
million, $21.9 million and $56.7 million, respectively
- Generated cash flows from operating activities of $55.6 million
and Distributable Cash Flow of $40.1 million
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.
Fourth Quarter and Full Year 2016
Operational and Financial Results
The Partnership’s fourth quarter 2016 reported
revenues, net income and Adjusted EBITDA of $26.4 million, $4.1
million and $13.9 million, respectively, which represents a 5%
increase, a 6% increase and a 5% increase over the Partnership’s
fourth quarter 2015 reported revenues, net income and Adjusted
EBITDA, respectively. Operating income increased by approximately
$0.7 million for the fourth quarter 2016 when compared to the
fourth quarter 2015 operating income of $3.6 million, which
increase was principally due to the following:
- Revenues increased by $1.4 million, or 5%, to $26.4 million as
compared to $25.0 million. The year over year increase is related
to the following: (i) a $0.6 million increase in minimum
storage and throughput revenue related to the acquisition of the
Pennsylvania terminals, the execution of new commercial agreements,
amending existing commercial agreements and an increase in capacity
under contract offset by previously announced rate reductions in
the Gulf Coast terminals, (ii) $0.8 million increase in excess
throughput and handling fees related to the acquisition of the
Pennsylvania terminals, increased throughput fees associated with
new customer agreements and contract amendments offset by reduced
throughput activity and marine unloading activity at certain
terminals and (iii) a less than $100,000 decrease in ancillary
revenue
- Operating expenses increased by $0.7 million, or 9%, to $8.6
million as compared to $7.9 million. The $0.7 million increase in
operating expenses is the result of (i) a $0.4 million increase in
operating expenses related to the acquisition of the Pennsylvania
terminals, (ii) $0.4 million increase of additive, contract labor
and utility expenses due to incremental throughput activity offset,
(iii) $0.2 million increase in general maintenance expense, (iv) a
$0.2 million increase in property taxes partially offset by (i) a
$0.2 million decrease in payroll due to a realignment and
optimization of the Partnership’s workforce, (ii) a $0.3 million
decrease in tank cleaning expenses and (iii) a less than $0.1
million decrease in general office expenses
- Selling, general and administrative expenses decreased by $2.1
million, or 35%, to $4.0 million as compared to $6.2 million. The
decrease was related to (i) a $0.5 million decrease of employee
compensation expense, (ii) a decrease in legal and professional
fees of $1.1 million, and (iii) a decrease in diligence related
expenses of $0.6 million partially offset by increased GP expense
of $0.1 million
- Depreciation and amortization expense increased by $0.7
million, or 10%, to $8.0 million as compared to $7.3 million, which
increase was principally due to the impact of the Pennsylvania
terminals acquisition, the completion of the Joliet and Pawnee
terminal acquisitions and the 2016 capital expenditures program
which included expansion capital expenditures to upgrade the
Brooklyn, Blakeley, Chickasaw, Mobile and Toledo terminals for
customer expansion activities and incremental maintenance capital
expenditures at the Blakeley, Brooklyn, Chickasaw and Mobile
terminals
- Revaluation of the contingent consideration related to the
Joliet terminal acquisition resulted in a non-cash loss of $1.3
million for the quarter ended December 31, 2016 and $1.0 million
for the year ended December 31, 2016. The non-cash loss from the
fair value changes in the contingent consideration in 2016 was
primarily attributable to the changes in discount rates and changes
to the Partnership’s estimate in assumed future throughput activity
which affects the timing of related revenues.
As of December 31, 2016, the Partnership's
storage capacity was approximately 7.8 million barrels, which
represents a 0.9 million barrel, or 13%, increase when compared to
its capacity at December 31, 2015. The increase in storage capacity
is related to the acquisition of the Pennsylvania terminals, three
newly constructed biodiesel tanks at the Pennsylvania terminals and
a newly constructed tank at the Pawnee terminal.
The Partnership's throughput activity increased
by 41.5 mbpd, or 37%, to 154.6 mbpd during the fourth quarter of
2016 compared to the fourth quarter of 2015. The 41.5 mbpd increase
was due to the following: (i) a 24.7 mbpd increase in crude oil
throughput, (ii) a 12.5 mbpd increase in gasoline and distillates
throughput at the newly acquired Pennsylvania terminals, (iii) a
1.4 mbpd increase in distillate throughput at a number of the
Partnership’s refined products terminals, (iv) a 4.2 mbpd increase
in gasoline throughput at a number of the Partnership’s refined
products terminals partially offset by a reduction in asphalt and
industrial products throughput due to seasonality and timing of
shipments.
For the year ended December 31, 2016, the
Partnership reported net income of $21.9 million, an increase of
$11.2 million over the full year 2015 net income of $10.7 million.
For the full year 2016, the Partnership generated $56.7 million of
Adjusted EBITDA, a 29% increase over the full year 2015 Adjusted
EBITDA of $44.1 million. The Partnership’s throughput activity
increased by 40.2 mbpd, or 34%, to 158.4 mpbd during the full year
2016 compared to full year 2015 throughput activity of 118.2 mbpd.
The Partnership's revenues for the full year 2016 increased by
$23.6 million to $105.4 million, or 29%, compared to the full year
2015 revenues of $81.8 million. The Partnership’s operating
expenses for the full year 2016 increased by $4.8 million to $33.7
million, or 16%, compared to the full year 2015 operating expenses
of $29.0 million.
In January 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 October 1, 2016 through
December 31, 2016. The fourth quarter distribution is in line with
the fourth quarter 2015 cash distribution of $0.44 per unit.
The distribution was paid on February 15, 2017 to unitholders of
record on February 8, 2017.
In 2015, the Partnership completed its
acquisition of the Joliet rail terminal, which included an earn-out
payment obligation to the seller thereof. At December 31, 2016, the
Partnership identified a material weakness in its internal control
over financial reporting related to the revaluation of the earn-out
obligation associated with business combinations. Specifically, the
Partnership did not properly design and maintain controls to
revalue, either on a quarterly or annual basis, the fair value of
such earn-out obligation and record the related gain or loss in the
fair value as an adjustment to earnings, as applicable. The
material weakness resulted in a non-cash adjustment of
approximately $1.0 million for the year ended December 31, 2016,
and the revision of the interim financial statements for the
periods ended March 31, 2016, June 30 2016 and September 30, 2016.
Management has commenced designing and implementing additional
internal controls as part of its remediation plans to address the
material weakness in its internal control over financial reporting
pertaining to the periodic revaluation of the earn-out obligation.
If management fails to design and implement effective internal
controls as part of its remediation plan, this control deficiency
could result in a misstatement of the aforementioned account
balances, which could result in a material misstatement to the
Partnership’s annual or interim consolidated financial
statements.
Although management has concluded that the
errors resulting from the material weakness were not material to
its previously issued 2016 interim unaudited financial statements,
the Partnership will be revising such interim financial statements,
and the financial results noted herein reflect such revision. The
fair market value adjustment does not impact the Partnership’s
Adjusted EBITDA, Distributable Cash Flow or near-term liquidity.
Notwithstanding such material weakness and the revision to the 2016
interim unaudited financial statements, the Partnership has
concluded that the unaudited consolidated financial statements
included in the Form 10-Q filings for the periods ended March 31,
2016, June 30, 2016, and September 30, 2016 presented fairly, in
all material respects, its financial position, results of
operations and cash flows for the periods presented in conformity
with GAAP.
Conference Call
Arc Logistics will hold a conference call and
webcast to discuss the fourth quarter 2016 financial results on
March 13, 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.
Arc Logistics Partners LP Schedule K-1s
Available
Arc Logistics has completed the 2016 tax
packages for its unitholders, including Schedule K-1. The tax
packages are available online and may be accessed via Arc
Logistics' website at www.arcxlp.com under "Investors >>
Tax Information". Arc Logistics has begun the process of mailing
the Schedule K-1’s. For additional information, unitholders may
also call Partner DataLink at (855) 280-3667 Monday through Friday
from 8:00 a.m. – 5:00 p.m. Central or visit their website at
https://www.partnerdatalink.com/ArcLogistics.
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
supply and demand of crude oil and petroleum products; (iv) actions
and performance of the Partnership’s customers, vendors or
competitors; (v) 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;
(vii) operating hazards, unforeseen weather events or matters
beyond the Partnership’s control; (viii) inability to consummate
acquisitions, pending or otherwise, on acceptable terms and
successfully integrate acquired businesses into the Partnership’s
operations; (ix) effects of existing and future laws or
governmental regulations; and (x) 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 and any updates thereto in
the Partnership’s subsequent quarterly reports on Form 10-Q and
current reports on Form 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 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 |
|
Year Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Third-party customers |
|
$ |
22,855 |
|
|
$ |
21,299 |
|
|
$ |
92,342 |
|
|
$ |
70,497 |
|
|
Related
parties |
|
|
3,543 |
|
|
|
3,738 |
|
|
|
13,039 |
|
|
|
11,292 |
|
|
|
|
|
26,398 |
|
|
|
25,037 |
|
|
|
105,381 |
|
|
|
81,789 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
8,643 |
|
|
|
7,917 |
|
|
|
33,749 |
|
|
|
28,973 |
|
|
Selling,
general and administrative |
|
|
2,727 |
|
|
|
4,922 |
|
|
|
12,895 |
|
|
|
17,891 |
|
|
Selling,
general and administrative - affiliate |
|
|
1,322 |
|
|
|
1,261 |
|
|
|
5,288 |
|
|
|
4,729 |
|
|
Depreciation |
|
|
4,360 |
|
|
|
3,587 |
|
|
|
15,704 |
|
|
|
11,680 |
|
|
Amortization |
|
|
3,673 |
|
|
|
3,724 |
|
|
|
14,714 |
|
|
|
10,819 |
|
|
Loss on
revaluation of contingent consideration, net |
|
|
1,345 |
|
|
|
- |
|
|
|
1,043 |
|
|
|
- |
|
|
Total
expenses |
|
|
22,070 |
|
|
|
21,411 |
|
|
|
83,393 |
|
|
|
74,092 |
|
|
Operating (loss)
income |
|
|
4,328 |
|
|
|
3,626 |
|
|
|
21,988 |
|
|
|
7,697 |
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Equity
earnings from unconsolidated affiliate |
|
|
2,413 |
|
|
|
2,520 |
|
|
|
9,852 |
|
|
|
10,030 |
|
|
Other
income |
|
|
2 |
|
|
|
- |
|
|
|
3 |
|
|
|
9 |
|
|
Interest
expense |
|
|
(2,577 |
) |
|
|
(2,241 |
) |
|
|
(9,811 |
) |
|
|
(6,873 |
) |
|
Total
other income (expenses), net |
|
|
(162 |
) |
|
|
279 |
|
|
|
44 |
|
|
|
3,166 |
|
|
(Loss) income before
income taxes |
|
|
4,166 |
|
|
|
3,905 |
|
|
|
22,032 |
|
|
|
10,863 |
|
|
Income
taxes |
|
|
22 |
|
|
|
11 |
|
|
|
124 |
|
|
|
119 |
|
|
Net (loss)
income |
|
|
4,144 |
|
|
|
3,894 |
|
|
|
21,908 |
|
|
|
10,744 |
|
|
Net
income attributable to non-controlling interests |
|
|
(1,313 |
) |
|
|
(1,959 |
) |
|
|
(6,866 |
) |
|
|
(4,315 |
) |
|
Net (loss)
income attributable to partners' capital |
|
|
2,831 |
|
|
|
1,935 |
|
|
|
15,042 |
|
|
|
6,429 |
|
|
Other comprehensive
(loss) income |
|
|
1,448 |
|
|
|
1,190 |
|
|
|
1,364 |
|
|
|
945 |
|
|
Comprehensive
(loss) income attributable to partners’ capital |
|
$ |
4,279 |
|
|
$ |
3,125 |
|
|
$ |
16,406 |
|
|
$ |
7,374 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per limited partner unit: |
|
|
|
|
|
|
|
|
|
Common
units (basic and diluted) |
|
$ |
0.22 |
|
|
$ |
0.09 |
|
|
$ |
0.83 |
|
|
$ |
0.39 |
|
|
Subordinated units (basic and diluted) |
|
$ |
(0.30 |
) |
|
$ |
0.09 |
|
|
$ |
0.47 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
ARC LOGISTICS PARTNERS LP |
|
CONSOLIDATED BALANCE SHEETS |
|
(In thousands, except unit
amounts) |
|
(Unaudited) |
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2016 |
|
|
2015 |
|
|
Assets: |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and
cash equivalents |
$ |
4,584 |
|
$ |
5,870 |
|
|
Trade
accounts receivable |
|
8,257 |
|
|
8,633 |
|
|
Due from
related parties |
|
1,321 |
|
|
1,532 |
|
|
Inventories |
|
397 |
|
|
318 |
|
|
Other
current assets |
|
2,060 |
|
|
1,162 |
|
|
Total
current assets |
|
16,619 |
|
|
17,515 |
|
|
Property,
plant and equipment, net |
|
395,511 |
|
|
380,671 |
|
|
Investment in unconsolidated affiliate |
|
75,716 |
|
|
74,399 |
|
|
Intangible assets, net |
|
117,716 |
|
|
132,121 |
|
|
Goodwill |
|
39,871 |
|
|
39,871 |
|
|
Other
assets |
|
2,980 |
|
|
3,945 |
|
|
Total
assets |
$ |
648,413 |
|
$ |
648,522 |
|
|
Liabilities and
partners' capital: |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
$ |
2,455 |
|
$ |
4,085 |
|
|
Accrued
expenses |
|
5,684 |
|
|
6,857 |
|
|
Due to
general partner |
|
2,082 |
|
|
638 |
|
|
Other
liabilities |
|
2,961 |
|
|
3,914 |
|
|
Total
current liabilities |
|
13,182 |
|
|
15,494 |
|
|
Credit
facility |
|
249,000 |
|
|
226,063 |
|
|
Other
non-current liabilities |
|
19,805 |
|
|
21,745 |
|
|
Total
liabilities |
|
281,987 |
|
|
263,302 |
|
|
Commitments and contingencies |
|
|
|
|
|
Partners'
capital: |
|
|
|
|
|
General
partner interest |
|
- |
|
|
- |
|
|
Limited
partners' interest |
|
|
|
|
|
Common
units – (19,477,021 and 13,174,410 units issued and
outstanding at December 31, 2016 and 2015, respectively) |
|
282,228 |
|
|
213,281 |
|
|
Subordinated units – (0 units and 6,081,081 issued and
outstanding at December 31, 2016 and 2015, respectively) |
|
- |
|
|
85,371 |
|
|
Non-controlling interests |
|
81,541 |
|
|
85,275 |
|
|
Accumulated other comprehensive income |
|
2,657 |
|
|
1,293 |
|
|
Total
partners' capital |
|
366,426 |
|
|
385,220 |
|
|
Total
liabilities and partners' capital |
$ |
648,413 |
|
$ |
648,522 |
|
|
|
|
|
|
|
|
ARC LOGISTICS PARTNERS LP |
|
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
(In thousands) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
Cash flow from
operating activities: |
|
|
|
|
|
|
Net
income |
|
$ |
21,908 |
|
|
$ |
10,744 |
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
|
|
|
Depreciation |
|
|
15,704 |
|
|
|
11,680 |
|
|
|
Amortization |
|
|
14,714 |
|
|
|
10,819 |
|
|
|
Equity
earnings from unconsolidated affiliate, net of distributions |
|
|
(262 |
) |
|
|
(544 |
) |
|
|
Amortization of deferred financing costs |
|
|
1,551 |
|
|
|
1,031 |
|
|
|
Unit-based compensation |
|
|
4,112 |
|
|
|
5,474 |
|
|
|
Net loss
on revaluation of contingent consideration |
|
|
1,043 |
|
|
|
- |
|
|
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
Trade
accounts receivable |
|
|
376 |
|
|
|
(4,887 |
) |
|
|
Due from
related parties |
|
|
211 |
|
|
|
(631 |
) |
|
|
Inventories |
|
|
84 |
|
|
|
(33 |
) |
|
|
Other
current assets |
|
|
(898 |
) |
|
|
64 |
|
|
|
Accounts
payable |
|
|
(1,923 |
) |
|
|
1,248 |
|
|
|
Accrued
expenses |
|
|
(366 |
) |
|
|
3,712 |
|
|
|
Due to
general partner |
|
|
1,444 |
|
|
|
229 |
|
|
|
Other
liabilities |
|
|
(2,063 |
) |
|
|
(1,474 |
) |
|
|
Net cash
provided by operating activities |
|
|
55,635 |
|
|
|
37,432 |
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Capital
expenditures |
|
|
(24,348 |
) |
|
|
(13,150 |
) |
|
|
Investment in unconsolidated affiliate |
|
|
- |
|
|
|
(361 |
) |
|
|
Net cash
paid for acquisitions |
|
|
(8,000 |
) |
|
|
(260,332 |
) |
|
|
Net cash
used in investing activities |
|
|
(32,348 |
) |
|
|
(273,843 |
) |
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Distributions |
|
|
(33,931 |
) |
|
|
(27,272 |
) |
|
|
Deferred
financing costs |
|
|
(586 |
) |
|
|
(3,239 |
) |
|
|
Repayments to credit facility |
|
|
(7,313 |
) |
|
|
- |
|
|
|
Proceeds
from credit facility |
|
|
30,250 |
|
|
|
115,000 |
|
|
|
Proceeds
from equity offerings, net |
|
|
- |
|
|
|
72,026 |
|
|
|
Equity
contribution from non-controlling interests |
|
|
- |
|
|
|
86,960 |
|
|
|
Payments
of earn-out liability |
|
|
(1,373 |
) |
|
|
(870 |
) |
|
|
Distributions paid to non-controlling interests |
|
|
(10,600 |
) |
|
|
(6,000 |
) |
|
|
Distribution equivalent rights paid on unissued units |
|
|
(1,020 |
) |
|
|
(923 |
) |
|
|
Net cash
(used in) provided by financing activities |
|
|
(24,573 |
) |
|
|
235,682 |
|
|
|
Net increase in cash
and cash equivalents |
|
|
(1,286 |
) |
|
|
(729 |
) |
|
|
Cash and cash
equivalents, beginning of period |
|
|
5,870 |
|
|
|
6,599 |
|
|
|
Cash and cash
equivalents, end of period |
|
$ |
4,584 |
|
|
$ |
5,870 |
|
|
|
|
|
|
|
|
|
|
ARC LOGISTICS PARTNERS LP |
|
|
RECONCILIATION OF ADJUSTED EBITDA AND
DISTRIBUTABLE CASH FLOW |
|
|
(In thousands, except operating
data) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Partners' Capital |
|
$ |
2,831 |
|
|
$ |
1,935 |
|
|
$ |
15,042 |
|
|
$ |
6,429 |
|
|
|
Income
taxes |
|
|
24 |
|
|
|
11 |
|
|
|
124 |
|
|
|
119 |
|
|
|
Interest
expense |
|
|
2,577 |
|
|
|
2,242 |
|
|
|
9,811 |
|
|
|
6,873 |
|
|
|
Depreciation (a) |
|
|
3,889 |
|
|
|
3,139 |
|
|
|
13,867 |
|
|
|
10,486 |
|
|
|
Amortization (a) |
|
|
3,055 |
|
|
|
3,109 |
|
|
|
12,247 |
|
|
|
9,175 |
|
|
|
One-time
non-recurring expenses (b) |
|
|
30 |
|
|
|
1,424 |
|
|
|
646 |
|
|
|
5,044 |
|
|
|
Non-cash
unit-based compensation |
|
|
591 |
|
|
|
1,303 |
|
|
|
4,119 |
|
|
|
5,488 |
|
|
|
Non-cash
loss on revaluation of contingent consideration, net (a),(c) |
|
|
807 |
|
|
|
- |
|
|
|
626 |
|
|
|
- |
|
|
|
Non-cash
deferred rent expense (d) |
|
|
65 |
|
|
|
72 |
|
|
|
262 |
|
|
|
462 |
|
|
|
Adjusted
EBITDA |
|
$ |
13,869 |
|
|
$ |
13,235 |
|
|
$ |
56,744 |
|
|
$ |
44,076 |
|
|
|
Cash
interest expense |
|
|
(2,349 |
) |
|
|
(1,977 |
) |
|
|
(8,950 |
) |
|
|
(6,112 |
) |
|
|
Cash
income taxes |
|
|
(24 |
) |
|
|
(11 |
) |
|
|
(124 |
) |
|
|
(119 |
) |
|
|
Maintenance capital expenditures |
|
|
(364 |
) |
|
|
(2,194 |
) |
|
|
(7,350 |
) |
|
|
(6,168 |
) |
|
|
Equity
earnings from the LNG Interest |
|
|
(2,413 |
) |
|
|
(2,520 |
) |
|
|
(9,852 |
) |
|
|
(10,030 |
) |
|
|
Cash
distributions received from the LNG Interest |
|
|
2,271 |
|
|
|
2,477 |
|
|
|
9,590 |
|
|
|
9,486 |
|
|
|
Distributable
Cash Flow |
|
$ |
10,990 |
|
|
$ |
9,010 |
|
|
$ |
40,058 |
|
|
$ |
31,133 |
|
|
|
Maintenance capital expenditures |
|
|
364 |
|
|
|
2,194 |
|
|
|
7,350 |
|
|
|
6,168 |
|
|
|
Distributable cash flow attributable to non-controlling
interests |
|
|
3,058 |
|
|
|
3,024 |
|
|
|
11,586 |
|
|
|
7,153 |
|
|
|
Changes
in operating assets and liabilities |
|
|
(2,040 |
) |
|
|
(4,008 |
) |
|
|
(3,135 |
) |
|
|
(1,772 |
) |
|
|
One-time
non-recurring expenses (b) |
|
|
(30 |
) |
|
|
(1,424 |
) |
|
|
(646 |
) |
|
|
(5,044 |
) |
|
|
Other
non-cash adjustments |
|
|
111 |
|
|
|
5 |
|
|
|
422 |
|
|
|
(206 |
) |
|
|
Net Cash
Provided by Operating Activities |
|
$ |
12,453 |
|
|
$ |
8,801 |
|
|
$ |
55,635 |
|
|
$ |
37,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________
(a) The loss on revaluation of contingent consideration,
depreciation and amortization have been adjusted to remove the
non-controlling interest portion related to the GE EFS 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 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 |
|
Year Ended |
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Selected
Operating Data: |
|
|
|
|
|
|
|
|
|
|
Storage capacity
(bbls) |
|
|
|
7,842,600 |
|
|
6,925,100 |
|
|
7,842,600 |
|
|
6,925,100 |
|
Throughput (bpd) |
|
|
|
154,618 |
|
|
113,099 |
|
|
158,445 |
|
|
118,244 |
|
|
|
|
|
|
|
|
|
|
|
|
Throughput Data
(bpd): |
|
|
|
|
|
|
|
|
|
|
Asphalts
and industrial products |
|
|
|
9,419 |
|
|
10,618 |
|
|
14,297 |
|
|
13,074 |
|
Crude
oil |
|
|
|
80,338 |
|
|
55,676 |
|
|
78,443 |
|
|
56,604 |
|
Distillates |
|
|
|
20,592 |
|
|
14,243 |
|
|
21,268 |
|
|
16,919 |
|
Gasoline |
|
|
|
44,269 |
|
|
32,561 |
|
|
44,438 |
|
|
31,647 |
|
Total Throughput |
|
|
|
154,618 |
|
|
113,099 |
|
|
158,445 |
|
|
118,244 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Summary: |
|
|
|
|
|
|
|
|
|
|
Minimum
storage & throughput services fees |
|
|
$ |
21,783 |
|
$ |
21,190 |
|
$ |
87,516 |
|
$ |
67,485 |
|
Excess
throughput & handling fees |
|
|
|
3,139 |
|
|
2,337 |
|
|
12,088 |
|
|
8,003 |
|
Total storage &
throughput fees |
|
|
|
24,922 |
|
|
23,527 |
|
|
99,604 |
|
|
75,488 |
|
Ancillary services
fees |
|
|
|
1,476 |
|
|
1,510 |
|
|
5,777 |
|
|
6,301 |
|
Total revenue |
|
|
$ |
26,398 |
|
$ |
25,037 |
|
$ |
105,381 |
|
$ |
81,789 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures |
|
|
$ |
364 |
|
$ |
2,194 |
|
$ |
7,350 |
|
$ |
6,168 |
|
Growth
capital expenditures |
|
|
|
2,805 |
|
|
3,645 |
|
|
15,357 |
|
|
9,693 |
|
Total capital
expenditures |
|
|
$ |
3,169 |
|
$ |
5,839 |
|
$ |
22,707 |
|
$ |
15,861 |
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:
IR@arcxlp.com
www.arcxlp.com
212-993-1290
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