PARSIPPANY, N.J., July 31, 2020 /PRNewswire/ -- PBF Logistics
LP (NYSE:PBFX, the "Partnership") today announced second quarter
2020 net income attributable to the limited partners of
$37.5 million, or $0.60 per common unit. During the quarter, the
Partnership generated cash from operations of $61.0 million, EBITDA attributable to PBFX of
$58.9 million, Adjusted EBITDA of
$60.0 million and distributable cash
flow of $47.0 million. Included in
reported results for the second quarter are $1.1 million, or $0.02 per common unit, of expenses related to
pending and non-consummated acquisitions, non-cash unit-based
compensation and environmental remediation costs associated with
the East Coast Terminals.
"Our focus during the second quarter was on the safety of our
employees and operations as we implemented many additional safety
protocols to ensure business continuity. Our strong contracted
minimum volume commitments largely insulated us from the impacts of
the pandemic and resulting decrease in volumes. We continued to
support our customers during this disruptive time and we expect our
revenues to remain well-supported by our long-term contracts in the
coming quarters," said PBF Logistics GP LLC Executive Vice
President Matt Lucey. "We announced
a distribution of $0.30 per unit
today and used excess cash to reduce leverage by paying down a
portion of our revolving credit facility. Delevering the business
and strengthening the balance sheet will position the Partnership
to be opportunistic."
As of June 30, 2020, the Partnership had approximately
$268.7 million of liquidity,
including approximately $21.6 million
in cash and cash equivalents, and access to approximately
$247.1 million under its revolving
credit facility.
PBF Logistics Declares Quarterly Distribution
The
board of directors of PBF Logistics GP LLC, the Partnership's
general partner, declared a regular quarterly cash distribution of
$0.30 per common unit. The
distribution is payable on August 26,
2020, to unitholders of record at the close of business on
August 13, 2020.
This release is intended to be a qualified notice to nominees
under Treasury Regulations Section 1.1446-4(b). All of the
Partnership's distributions to foreign investors are attributable
to income that is effectively connected with a United States trade or business. Accordingly,
the Partnership's distributions to foreign investors are subject to
federal income tax withholding at the highest effective tax
rate.
Non-GAAP Financial Measures
The Partnership defines
EBITDA as net income (loss) before net interest expense (including
amortization of loan fees and debt premium and accretion on
discounted liabilities), income tax expense, depreciation,
amortization and change in contingent consideration. The
Partnership defines EBITDA attributable to PBFX as net income
(loss) attributable to PBFX before net interest expense (including
amortization of loan fees and debt premium and accretion on
discounted liabilities), income tax expense, depreciation,
amortization and change in contingent consideration attributable to
PBFX, which excludes results of acquisitions from affiliates of PBF
Energy prior to the effective dates of such transactions and
earnings attributable to the CPI earn-out (the portion of earnings
associated with an earn-out provision related to the purchase of
CPI Operations LLC ("CPI"),(the "Contingent Consideration")). The
Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX
excluding acquisition and transaction costs, non-cash unit-based
compensation expense and items that meet the conditions of unusual,
infrequent and/or non-recurring charges. The Partnership defines
distributable cash flow as EBITDA attributable to PBFX plus
non-cash unit-based compensation expense, less cash interest,
maintenance capital expenditures attributable to PBFX and income
taxes. Distributable cash flow will not reflect changes in working
capital balances. EBITDA, EBITDA attributable to PBFX, Adjusted
EBITDA and distributable cash flow are not presentations made in
accordance with U.S. generally accepted accounting principles
("GAAP").
For additional information on the Partnership's non-GAAP
financial measures, including reconciliations to their most
directly comparable financial measures calculated and presented in
accordance with GAAP, refer to the supplemental information
provided in "Results of Operations" and the Earnings Release Tables
included herein.
Conference Call Information
The Partnership will host
a conference call and webcast regarding second quarter results and
other business matters on Friday, July 31,
2020, at 11:00 a.m. ET. The
call is being webcast and can be accessed at PBF Logistics'
website, http://www.pbflogistics.com. The call can also be accessed
by dialing (800) 459-5346 or (203) 518-9544, conference ID:
PBFXQ220. The audio replay will be available two hours after the
end of the call through August 14,
2020, by dialing (800) 753-5207 or (402) 220-2156.
Forward-Looking Statements
This press release
contains forward-looking statements (as that term is defined under
the federal securities laws) made by the Partnership and its
management. Such statements are based on current expectations,
forecasts and projections, including, but not limited to,
anticipated financial and operating results, plans, objectives,
expectations and intentions that are not historical in nature.
Forward-looking statements should not be read as a guarantee of
future performance or results, and may not necessarily be accurate
indications of the times at, or by which, such performance or
results will be achieved. Forward-looking statements are based on
information available at the time, and are subject to various risks
and uncertainties, including risks relating to the securities
markets generally, the impact of adverse market conditions
impacting PBFX's logistics and other assets, the possibility that
the Partnership may not consummate any potential future
acquisitions, the Partnership's plans for financing any potential
future acquisitions, the duration and severity of the COVID-19
pandemic, and other risks inherent in PBFX's business. For more
information concerning factors that could cause actual results to
differ from those expressed or forecasted, see PBFX's filings with
the Securities and Exchange Commission including its most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
Forward-looking statements reflect information, facts and
circumstances only as of the date they are made. The Partnership
assumes no responsibility or obligation to update forward-looking
statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP,
headquartered in Parsippany, New
Jersey, is a fee-based, growth-oriented master limited
partnership formed by PBF Energy Inc. to own or lease, operate,
develop and acquire crude oil and refined petroleum products
terminals, pipelines, storage facilities and similar logistics
assets.
Results of Operations (Unaudited)
Business Developments
COVID-19
The recent outbreak of the coronavirus disease 2019 ("COVID-19")
pandemic continues to negatively impact worldwide economic and
commercial activity and financial markets, as well as global demand
for petroleum and petrochemical products. The COVID-19 pandemic and
resulting governmental and consumer responses have also resulted in
significant business and operational disruptions, including
business and school closures, supply chain disruptions, travel
restrictions, stay-at-home orders and limitations on the
availability of workforces. Such impacts have resulted in revenue
declines due to lower demand and throughput volumes across certain
of our facilities, which may continue to affect our business for
the foreseeable future. In response to the COVID-19 pandemic, we
are taking steps to mitigate potential adverse impacts on our
business and operations by limiting capital expenditures, reducing
discretionary activities and third-party services and lowering our
quarterly distribution to our minimum quarterly distribution
of $0.30 per unit. This distribution reduction, effective
with the distribution for the first quarter of 2020 that was paid
on June 17, 2020, represents a
strategic shift to build our cash flow coverage, de-lever our
business and increase our financial resources as we continue to
identify potential organic growth projects or strategic
acquisitions. In addition, our parent sponsor and largest customer,
PBF Energy Inc., has endeavored to take the necessary steps to
preserve liquidity and solidify its operations under the adverse
market conditions caused by the COVID-19 pandemic.
The full extent to which the COVID-19 pandemic impacts our
business and operations, or that of our parent sponsor, is unknown
and will depend on the severity, location and duration of the
effects and spread of COVID-19, the actions undertaken by national,
regional and local governments and health officials to contain the
virus or treat its effects, related consumer responses and how
quickly and to what extent economic conditions improve and normal
business and operating conditions resume.
Factors Affecting Comparability
The following tables present our results of operations, related
operational information and reconciliations of net income and net
cash provided by operating activities to our EBITDA, EBITDA
attributable to PBFX, Adjusted EBITDA and distributable cash flow
(each as defined below) for the three and six months ended
June 30, 2020 and 2019.
On October 1, 2018, we acquired
from Crown Point International, LLC, its wholly-owned subsidiary,
CPI Operations LLC ("CPI"), whose assets include a storage facility
with multi-use storage capacity, an Aframax-capable marine
facility, a rail facility, a truck terminal, equipment, contracts
and certain other idled assets (the "East Coast Storage Assets")
located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage
Assets Acquisition"). In connection with the acquisition, the
purchase and sale agreement included an earn-out provision related
to an existing commercial agreement with a third party, based on
the future results of certain of the acquired idled assets, which
recommenced operations in October
2019.
On April 24, 2019, we entered into
a Contribution Agreement with PBF Energy Company LLC ("PBF LLC"),
pursuant to which PBF LLC contributed to us all of the issued and
outstanding limited liability company interests of TVP Holding
Company LLC ("TVP Holding"), which held the remaining 50% equity
interest in Torrance Valley Pipeline Company LLC ("TVPC"), for
total consideration of $200.0 million
(the "TVPC Acquisition"). Subsequent to the closing of the TVPC
Acquisition on May 31, 2019, we own
100% of the equity interest in TVPC.
On April 24, 2019, we entered into
subscription agreements to sell an aggregate of 6,585,500 common
units to certain institutional investors in a registered direct
public offering (the "2019 Registered Direct Offering") for gross
proceeds of approximately $135.0
million. The 2019 Registered Direct Offering closed on
April 29, 2019.
In addition, our results in the current year have been
negatively affected by the impact of the COVID-19 pandemic on our
business, including lower throughput volumes at our terminals, as
the industry reacts to the related economic downturn and volatile
commodity markets.
As a result of the factors above, the information included in
the following tables is not necessarily comparable on a
year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest
expense (including amortization of loan fees and debt premium and
accretion on discounted liabilities), income tax expense,
depreciation, amortization and change in contingent consideration.
We define EBITDA attributable to PBFX as net income (loss)
attributable to PBFX before net interest expense (including
amortization of loan fees and debt premium and accretion on
discounted liabilities), income tax expense, depreciation,
amortization and change in contingent consideration attributable to
PBFX, which excludes the results of acquisitions from PBF LLC prior
to the effective dates of such transactions and earnings
attributable to the CPI earn-out (the portion of earnings
associated with an earn-out provision related to the purchase of
CPI (the "Contingent Consideration")). We define Adjusted EBITDA as
EBITDA attributable to PBFX excluding acquisition and transaction
costs, non-cash unit-based compensation expense and items that meet
the conditions of unusual, infrequent and/or non-recurring charges.
We define distributable cash flow as EBITDA attributable to PBFX
plus non-cash unit-based compensation expense, less cash interest,
maintenance capital expenditures attributable to PBFX and income
taxes. Distributable cash flow will not reflect changes in working
capital balances. We use distributable cash flow to calculate a
measure we refer to as our coverage ratio. Our coverage ratio is
calculated by dividing distributable cash flow by our total
distribution declared. EBITDA, EBITDA attributable to PBFX,
Adjusted EBITDA and distributable cash flow are not presentations
made in accordance with U.S. generally accepted accounting
principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and
distributable cash flow are not presentations made in accordance
with GAAP, they are supplemental financial measures that management
and external users of our condensed consolidated financial
statements, such as industry analysts, investors, lenders and
rating agencies, may use to assess:
- our operating performance as compared to other publicly traded
partnerships in the midstream energy industry, without regard to
historical cost basis or, in the case of EBITDA, financing
methods;
- the ability of our assets to generate sufficient cash flow to
make distributions to our unitholders;
- our ability to incur and service debt and fund capital
expenditures; and
- the viability of acquisitions and other capital expenditure
projects and the economic returns on various investment
opportunities.
We believe that the presentation of EBITDA, EBITDA attributable
to PBFX and Adjusted EBITDA provides useful information to
investors in assessing our financial condition and results of
operations and assists in evaluating our ongoing operating
performance for current and comparative periods. We believe that
the presentation of distributable cash flow provides useful
information to investors as it is a widely accepted financial
indicator used by investors to compare partnership performance and
it provides investors with another perspective of the operating
performance of our assets and the cash our business is generating.
However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and
distributable cash flow should not be considered alternatives to
net income, income from operations, net cash provided by operating
activities or any other measure of financial performance or
liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and
distributable cash flow have important limitations as analytical
tools because they exclude some, but not all, items that affect net
income and net cash provided by operating activities. EBITDA,
EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash
flow are reconciled to their most directly comparable financial
measures calculated and presented in accordance with GAAP in the
Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in
isolation or as a substitute for analysis of our results as
reported under GAAP. Our definitions of these non-GAAP financial
measures may not be comparable to similarly titled measures of
other partnerships, because they may be defined differently by
other partnerships in our industry, thereby limiting their
utility.
PBF LOGISTICS
LP
|
|
EARNINGS RELEASE
TABLES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited, in
thousands, except unit and per unit data)
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Revenue
(a):
|
|
|
|
|
|
|
|
|
|
Affiliate
|
$
|
72,422
|
|
|
$
|
74,656
|
|
|
$
|
147,965
|
|
|
$
|
145,988
|
|
|
Third-party
|
16,707
|
|
8,094
|
|
34,193
|
|
15,607
|
|
Total
revenue
|
89,129
|
|
82,750
|
|
182,158
|
|
161,595
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Operating and
maintenance expenses (a)
|
23,154
|
|
28,553
|
|
52,655
|
|
58,469
|
|
|
General and
administrative expenses
|
4,299
|
|
7,580
|
|
8,686
|
|
13,590
|
|
|
Depreciation and
amortization
|
11,234
|
|
8,854
|
|
22,516
|
|
17,575
|
|
|
Change in contingent
consideration
|
324
|
|
—
|
|
530
|
|
—
|
|
Total costs and
expenses
|
39,011
|
|
44,987
|
|
84,387
|
|
89,634
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
50,118
|
|
37,763
|
|
97,771
|
|
71,961
|
|
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(11,536)
|
|
(11,216)
|
|
(23,385)
|
|
(22,129)
|
|
|
Amortization of loan
fees and debt premium
|
(542)
|
|
(446)
|
|
(981)
|
|
(895)
|
|
|
Accretion on
discounted liabilities
|
(580)
|
|
(773)
|
|
(1,132)
|
|
(1,533)
|
|
Net
income
|
37,460
|
|
25,328
|
|
72,273
|
|
47,404
|
|
|
Less: Net income
attributable to noncontrolling interest (g)
|
—
|
|
3,162
|
|
—
|
|
7,881
|
|
Net income
attributable to PBF Logistics LP unitholders
|
$
|
37,460
|
|
|
$
|
22,166
|
|
|
$
|
72,273
|
|
|
$
|
39,523
|
|
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit (h):
|
|
|
|
|
|
|
|
|
|
Common units -
basic
|
$
|
0.60
|
|
|
$
|
0.37
|
|
|
$
|
1.16
|
|
|
$
|
0.72
|
|
|
Common units -
diluted
|
0.60
|
|
0.37
|
|
1.16
|
|
0.72
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
limited partner units outstanding (h):
|
|
|
|
|
|
|
|
|
|
Common units -
basic
|
62,439,378
|
|
60,279,287
|
|
62,364,243
|
|
54,748,755
|
|
|
Common units -
diluted
|
62,446,419
|
|
60,364,347
|
|
62,372,554
|
|
54,776,257
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
KEY OPERATING AND
FINANCIAL INFORMATION
|
(Unaudited,
amounts in thousands except barrel and per unit
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Transportation and
Terminaling Segment
|
|
|
|
|
|
|
|
|
|
Terminals
|
|
|
|
|
|
|
|
|
|
Total
throughput (barrels per day ("bpd")) (b)(d)
|
|
|
221,396
|
|
|
275,076
|
|
|
260,894
|
|
|
262,772
|
|
Lease tank
capacity (average lease capacity barrels per month) (d)
|
|
|
2,392,535
|
|
|
2,185,882
|
|
|
2,221,789
|
|
|
2,300,813
|
|
Pipelines
|
|
|
|
|
|
|
|
|
|
Total
throughput (bpd) (b)(d)
|
|
|
156,043
|
|
|
161,809
|
|
|
159,285
|
|
|
154,520
|
|
Lease tank
capacity (average lease capacity barrels per month) (d)
|
|
|
1,163,287
|
|
|
1,500,714
|
|
|
1,155,555
|
|
|
1,338,769
|
|
|
|
|
|
|
|
|
|
|
|
Storage
Segment
|
|
|
|
|
|
|
|
|
|
Storage capacity
reserved (average shell capacity barrels per month) (d)
|
|
|
7,607,643
|
|
|
8,053,983
|
|
|
7,607,643
|
|
|
7,993,338
|
|
Total throughput (bpd)
(b)(d)
|
|
|
27,054
|
|
|
—
|
|
|
26,154
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Cash Flow
Information:
|
|
|
|
|
|
|
|
Net cash
provided by (used in):
|
|
|
|
|
|
|
|
|
|
Operating activities
|
$
|
61,041
|
|
|
$
|
17,677
|
|
|
$
|
79,688
|
|
|
$
|
55,886
|
|
Investing activities
|
(1,792)
|
|
|
(3,932)
|
|
|
(7,872)
|
|
|
(15,152)
|
|
Financing activities
|
(153,704)
|
|
|
(10,191)
|
|
|
(85,214)
|
|
|
(40,642)
|
|
Net change in cash and
cash equivalents
|
|
|
$
|
(94,455)
|
|
|
$
|
3,554
|
|
|
$
|
(13,398)
|
|
|
$
|
92
|
|
|
|
|
|
|
|
|
|
Other Financial
Information:
|
|
|
|
|
|
|
|
|
EBITDA attributable
to PBFX (c)
|
$
|
58,867
|
|
|
$
|
42,534
|
|
|
$
|
115,176
|
|
|
$
|
79,356
|
|
|
Adjusted EBITDA
(c)
|
$
|
60,002
|
|
|
$
|
48,336
|
|
|
$
|
117,940
|
|
|
$
|
91,293
|
|
|
Distributable cash
flow (c)
|
$
|
46,972
|
|
|
$
|
34,123
|
|
|
$
|
87,747
|
|
|
$
|
59,536
|
|
|
Quarterly
distribution declared per unit (e)
|
$
|
0.3000
|
|
|
$
|
0.5150
|
|
|
$
|
0.6000
|
|
|
$
|
1.0250
|
|
|
Distributions
(e):
|
|
|
|
|
|
|
|
|
|
Common
units
|
$
|
18,849
|
|
|
$
|
32,398
|
|
|
$
|
37,693
|
|
|
$
|
64,481
|
|
|
|
|
Total
distributions
|
$
|
18,849
|
|
|
$
|
32,398
|
|
|
$
|
37,693
|
|
|
$
|
64,481
|
|
|
|
|
Coverage ratio
(c)
|
|
|
2.49x
|
|
|
1.05x
|
|
|
2.33x
|
|
|
0.92x
|
|
|
Capital
expenditures
|
$
|
1,792
|
|
|
$
|
3,932
|
|
|
$
|
7,872
|
|
|
$
|
15,152
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
KEY OPERATING AND
FINANCIAL INFORMATION (continued)
|
(Unaudited, in
thousands)
|
|
|
June
30,
|
|
December
31,
|
Balance Sheet
Information:
|
|
2020
|
|
2019
|
Cash and cash
equivalents (f)
|
$
|
21,568
|
|
|
$
|
34,966
|
|
Property, plant and
equipment, net
|
841,475
|
|
|
854,610
|
|
Total assets
|
950,543
|
|
|
973,002
|
|
Total debt
(f)
|
768,085
|
|
|
802,104
|
|
Total
liabilities
|
823,297
|
|
|
867,919
|
|
Partners'
equity
|
127,246
|
|
|
105,083
|
|
Total liabilities and
equity
|
950,543
|
|
|
973,002
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER GAAP
|
TO EBITDA AND
DISTRIBUTABLE CASH FLOW
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
net income to EBITDA and distributable cash flow
(c):
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
37,460
|
|
|
$
|
25,328
|
|
|
$
|
72,273
|
|
|
$
|
47,404
|
|
|
|
Interest expense,
net
|
11,536
|
|
|
11,216
|
|
|
23,385
|
|
|
22,129
|
|
|
|
Amortization of loan
fees and debt premium
|
542
|
|
|
446
|
|
|
981
|
|
|
895
|
|
|
|
Accretion on
discounted liabilities
|
580
|
|
|
773
|
|
|
1,132
|
|
|
1,533
|
|
|
|
Change in contingent
consideration
|
324
|
|
|
—
|
|
|
530
|
|
|
—
|
|
|
|
Depreciation and
amortization
|
11,234
|
|
|
8,854
|
|
|
22,516
|
|
|
17,575
|
|
|
EBITDA
|
61,676
|
|
|
46,617
|
|
|
120,817
|
|
|
89,536
|
|
|
|
Less: Noncontrolling
interest EBITDA (g)
|
—
|
|
|
4,083
|
|
|
—
|
|
|
10,180
|
|
|
|
Less: Earnings
attributable to the CPI earn-out
|
2,809
|
|
|
—
|
|
|
5,641
|
|
|
—
|
|
|
EBITDA
attributable to PBFX
|
58,867
|
|
|
42,534
|
|
|
115,176
|
|
|
79,356
|
|
|
|
Non-cash unit-based
compensation expense
|
945
|
|
|
3,387
|
|
|
2,247
|
|
|
4,351
|
|
|
|
Cash
interest
|
(11,733)
|
|
|
(11,290)
|
|
|
(23,721)
|
|
|
(22,426)
|
|
|
|
Maintenance capital
expenditures attributable to PBFX
|
(1,107)
|
|
|
(508)
|
|
|
(5,955)
|
|
|
(1,745)
|
|
|
Distributable cash flow
|
$
|
46,972
|
|
|
$
|
34,123
|
|
|
$
|
87,747
|
|
|
$
|
59,536
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net cash provided by operating activities to EBITDA and
distributable cash flow (c):
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
$
|
61,041
|
|
|
$
|
17,677
|
|
|
$
|
79,688
|
|
|
$
|
55,886
|
|
|
Change in operating
assets and liabilities
|
(9,956)
|
|
|
21,111
|
|
|
19,991
|
|
|
15,872
|
|
|
|
Interest expense,
net
|
11,536
|
|
|
11,216
|
|
|
23,385
|
|
|
22,129
|
|
|
|
Non-cash unit-based
compensation expense
|
(945)
|
|
|
(3,387)
|
|
|
(2,247)
|
|
|
(4,351)
|
|
|
EBITDA
|
61,676
|
|
|
46,617
|
|
|
120,817
|
|
|
89,536
|
|
|
|
Less: Noncontrolling
interest EBITDA (g)
|
—
|
|
|
4,083
|
|
|
—
|
|
|
10,180
|
|
|
|
Less: Earnings
attributable to the CPI earn-out
|
2,809
|
|
|
—
|
|
|
5,641
|
|
|
—
|
|
|
EBITDA
attributable to PBFX
|
58,867
|
|
|
42,534
|
|
|
115,176
|
|
|
79,356
|
|
|
|
Non-cash unit-based
compensation expense
|
945
|
|
|
3,387
|
|
|
2,247
|
|
|
4,351
|
|
|
|
Cash
interest
|
(11,733)
|
|
|
(11,290)
|
|
|
(23,721)
|
|
|
(22,426)
|
|
|
|
Maintenance capital
expenditures attributable to PBFX
|
(1,107)
|
|
|
(508)
|
|
|
(5,955)
|
|
|
(1,745)
|
|
|
Distributable cash flow
|
$
|
46,972
|
|
|
$
|
34,123
|
|
|
$
|
87,747
|
|
|
$
|
59,536
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER GAAP
|
TO EBITDA AND
ADJUSTED EBITDA
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
net income to EBITDA and Adjusted EBITDA (c):
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
37,460
|
|
|
$
|
25,328
|
|
|
$
|
72,273
|
|
|
$
|
47,404
|
|
|
|
Interest expense,
net
|
11,536
|
|
|
11,216
|
|
|
23,385
|
|
|
22,129
|
|
|
|
Amortization of loan
fees and debt premium
|
542
|
|
|
446
|
|
|
981
|
|
|
895
|
|
|
|
Accretion on
discounted liabilities
|
580
|
|
|
773
|
|
|
1,132
|
|
|
1,533
|
|
|
|
Change in contingent
consideration
|
324
|
|
|
—
|
|
|
530
|
|
|
—
|
|
|
|
Depreciation and
amortization
|
11,234
|
|
|
8,854
|
|
|
22,516
|
|
|
17,575
|
|
|
EBITDA
|
61,676
|
|
|
46,617
|
|
|
120,817
|
|
|
89,536
|
|
|
|
Less: Noncontrolling
interest EBITDA (g)
|
—
|
|
|
4,083
|
|
|
—
|
|
|
10,180
|
|
|
|
Less: Earnings
attributable to the CPI earn-out
|
2,809
|
|
|
—
|
|
|
5,641
|
|
|
—
|
|
|
EBITDA
attributable to PBFX
|
58,867
|
|
|
42,534
|
|
|
115,176
|
|
|
79,356
|
|
|
|
Acquisition and
transaction costs
|
15
|
|
|
955
|
|
|
110
|
|
|
3,108
|
|
|
|
Non-cash unit-based
compensation expense
|
945
|
|
|
3,387
|
|
|
2,247
|
|
|
4,351
|
|
|
|
East Coast Terminals
environmental remediation costs
|
175
|
|
|
1,460
|
|
|
407
|
|
|
3,596
|
|
|
|
PNGPC tariff true-up
adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
882
|
|
|
Adjusted
EBITDA
|
$
|
60,002
|
|
|
$
|
48,336
|
|
|
$
|
117,940
|
|
|
$
|
91,293
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
SEGMENT FINANCIAL
INFORMATION
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2020
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
66,709
|
|
|
$
|
22,420
|
|
|
$
|
—
|
|
|
$
|
89,129
|
|
Depreciation and
amortization
|
|
7,023
|
|
|
4,211
|
|
|
—
|
|
|
11,234
|
|
Income (loss) from
operations
|
|
42,912
|
|
|
11,505
|
|
|
(4,299)
|
|
|
50,118
|
|
Other
expense
|
|
—
|
|
|
—
|
|
|
12,658
|
|
|
12,658
|
|
Capital
expenditures
|
|
1,405
|
|
|
387
|
|
|
—
|
|
|
1,792
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
69,656
|
|
|
$
|
13,094
|
|
|
$
|
—
|
|
|
$
|
82,750
|
|
Depreciation and
amortization
|
|
6,879
|
|
|
1,975
|
|
|
—
|
|
|
8,854
|
|
Income (loss) from
operations
|
|
40,529
|
|
|
4,814
|
|
|
(7,580)
|
|
|
37,763
|
|
Other
expense
|
|
—
|
|
|
—
|
|
|
12,435
|
|
|
12,435
|
|
Capital
expenditures
|
|
1,689
|
|
|
2,243
|
|
|
—
|
|
|
3,932
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2020
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
136,952
|
|
|
$
|
45,206
|
|
|
$
|
—
|
|
|
$
|
182,158
|
|
Depreciation and
amortization
|
|
14,095
|
|
|
8,421
|
|
|
—
|
|
|
22,516
|
|
Income (loss) from
operations
|
|
84,180
|
|
|
22,277
|
|
|
(8,686)
|
|
|
97,771
|
|
Other
expense
|
|
—
|
|
|
—
|
|
|
25,498
|
|
|
25,498
|
|
Capital
expenditures
|
|
5,031
|
|
|
2,841
|
|
|
—
|
|
|
7,872
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2019
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
135,615
|
|
|
$
|
25,980
|
|
|
$
|
—
|
|
|
$
|
161,595
|
|
Depreciation and
amortization
|
|
13,780
|
|
|
3,795
|
|
|
—
|
|
|
17,575
|
|
Income (loss) from
operations
|
|
77,080
|
|
|
8,471
|
|
|
(13,590)
|
|
|
71,961
|
|
Other
expense
|
|
—
|
|
|
—
|
|
|
24,557
|
|
|
24,557
|
|
Capital
expenditures
|
|
12,233
|
|
|
2,919
|
|
|
—
|
|
|
15,152
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
SEGMENT FINANCIAL
INFORMATION (continued)
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June
30, 2020
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total
assets
|
|
$
|
710,817
|
|
|
$
|
229,595
|
|
|
$
|
10,131
|
|
|
$
|
950,543
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2019
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total
assets
|
|
$
|
726,374
|
|
|
$
|
228,495
|
|
|
$
|
18,133
|
|
|
$
|
973,002
|
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
FOOTNOTES TO
EARNINGS RELEASE TABLES
|
(Unaudited, in
thousands, except per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
See discussion of the
factors affecting comparability noted on page 4. Our results of
operations may not be comparable to the historical results of
operations for the reasons described below:
Revenue - On October
1, 2018, we closed the East Coast Storage Assets Acquisition, which
was accounted for as a business combination. In October 2019, we
recommenced operations of certain of the acquired idled assets,
which began revenue generating activities. As such, there was no
revenue associated with the acquired idled assets prior to their
recommencement.
On May 31, 2019, we
closed the TVPC Acquisition in which we acquired the remaining 50%
equity interest in TVPC. As such, we now own 100% of the equity
interest in TVPC and no longer record a noncontrolling interest
related to our ownership of TVPC.
Operating and
maintenance expenses - As a result of our acquisitions and the
completion of certain organic growth projects, our operating
expenses are not comparative to prior periods as it pertains to
expenses associated with those assets.
In addition, our
results in the current year have been negatively affected by the
impact of the COVID-19 pandemic on our business, including lower
throughput at our terminals, as the industry reacts to the related
economic downturn and volatile commodity markets.
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
Calculated as the sum
of the average throughput per day for each asset group for the
periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
See "Non-GAAP
Financial Measures" on page 5 for definitions of EBITDA, EBITDA
attributable to PBFX, Adjusted EBITDA, distributable cash flow and
coverage ratio.
|
|
|
|
|
|
|
|
|
|
|
|
|
(d)
|
|
Operating information
reflects activity subsequent to our acquisitions, the execution of
the commercial agreements with PBF Holding and the completion of
certain organic growth projects.
|
|
|
|
(e)
|
|
On July 31, 2020, we
announced a quarterly cash distribution of $0.30 per limited
partner unit based on the results of the second quarter of 2020.
The distribution is payable on August 26, 2020 to PBFX unitholders
of record at the close of business on August 13, 2020. The total
distribution amount includes the expected distributions to be made
related to second quarter earnings.
|
|
|
|
(f)
|
|
Management also
utilizes net debt as a metric in assessing our leverage. Net debt
is a non-GAAP measure calculated by subtracting cash and cash
equivalents from total debt. We believe this measurement is also
useful to investors since we have the ability to, and may decide
to, use a portion of our cash and cash equivalents to retire or pay
down our debt. This non-GAAP financial measure should not be
considered in isolation or as a substitute for analysis of our debt
levels as reported under GAAP. Our definition of net debt may not
be comparable to similarly titled measures of other partnerships,
because it may be defined differently by other partnerships in our
industry, thereby limiting its utility. Our net debt as of June 30,
2020 and December 31, 2019 was $746,517 and $767,138,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
|
|
Prior to the TVPC
Acquisition, our wholly-owned subsidiary, PBFX Operating Company
LLC ("PBFX Op Co"), held a 50% controlling equity interest in TVPC,
with the other 50% equity interest in TVPC owned by TVP Holding, a
subsidiary of PBF Holding. PBFX Op Co was the sole managing member
of TVPC. We, through our ownership of PBFX Op Co, consolidated the
financial results of TVPC and recorded a noncontrolling interest
for the economic interest in TVPC held by TVP Holding.
Noncontrolling interest on the condensed consolidated statements of
operations included the portion of net income or loss attributable
to the economic interest in TVPC held by TVP Holding.
Noncontrolling interest on the condensed consolidated balance
sheets included the portion of net assets of TVPC attributable to
TVP
Holding.
.
Subsequent to the TVPC Acquisition, we own 100% of the equity
interest in TVPC and no longer record a noncontrolling interest
related to TVPC.
|
|
|
|
(h)
|
|
We base our
calculation of net income per limited partner unit on the
weighted-average number of limited partner units outstanding during
the period and the amount of available cash that has been, or will
be, distributed to the limited partners.
|
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SOURCE PBF Logistics LP