Attached files

file filename
8-K - 8-K - TransMontaigne Partners LLCa12-23976_38k.htm

Exhibit 99.1

 

 

Contact:

Charles L. Dunlap, CEO

Gregory J. Pound, COO

Frederick W. Boutin, CFO

303-626-8200

 

TRANSMONTAIGNE PARTNERS L.P. ANNOUNCES FINANCIAL RESULTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2012

 

November 6, 2012

Immediate Release

 

Denver, Colorado—TransMontaigne Partners L.P. (NYSE:TLP) today announced its financial results for the quarter ended September 30, 2012.

 

FINANCIAL RESULTS

 

An overview of the financial performance for the quarter ended September 30, 2012, as compared to the quarter ended September 30, 2011, includes:

 

·                  Distributable cash flow generated during the quarter ended September 30, 2012 was $15.3 million compared to $13.1 million for the quarter ended September 30, 2011.

·                  The distribution declared per limited partner unit was $0.64 per unit for the quarter ended September 30, 2012, as compared to $0.62 per unit for the quarter ended September 30, 2011.

·                  Operating income for the quarter ended September 30, 2012 was $10.7 million compared to $8.6 million for the quarter ended September 30, 2011, principally due to the following:

·                  Revenue was $38.9 million compared to $37.1 million due to increases in revenue at the Gulf Coast, Midwest, Brownsville and River terminals of approximately $0.8 million, $1.1 million, $0.4 million and $0.1 million, respectively, offset by a decrease in revenue at the Southeast terminals of approximately $0.6 million.

·                  Direct operating costs and expenses were $16.2 million compared to $16.5 million due to decreases in direct operating costs and expenses at the River and Southeast terminals of approximately $0.2 million and $0.4 million, respectively, offset by an increase in direct operating costs and expenses at the Gulf Coast terminals of approximately $0.2 million. The direct operating costs and expenses for the Midwest and Brownsville terminals were consistent period over period, respectively.

·                  Quarterly net earnings for the quarter ended September 30, 2012 increased to $9.9 million from $7.7 million, and net earnings per limited partner unit - basic for the quarter ended September 30, 2012 increased to $0.59 per unit from $0.46 per unit due principally to the increases in operating income discussed above.

 

1670 Broadway • Suite 3100 • Denver, CO 80202 • 303-626-8200 (phone) • 303-626-8228 (fax)

Mailing Address:  • P. O. Box 5660 • Denver, CO 80217-5660

www.transmontaignepartners.com

 



 

Our terminaling services agreements are structured as either throughput agreements or storage agreements.  Most of our throughput agreements contain provisions that require our customers to throughput a minimum volume of product at our facilities over a stipulated period of time, which results in a fixed amount of revenue to be recognized by us.  Our storage agreements require our customers to make minimum payments based on the volume of storage capacity made available to the customer under the agreement, which results in a fixed amount of revenue to be recognized by us.  We refer to the fixed amount of revenue recognized pursuant to our terminaling services agreements as being “firm commitments.”  Revenue recognized in excess of firm commitments and revenue recognized based solely on the volume of product distributed or injected are referred to as “variable.”  Our revenue was as follows (in thousands):

 

 

 

Three months
ended
September 30,

 

Nine months
ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Firm Commitments:

 

 

 

 

 

 

 

 

 

Terminaling services fees, net:

 

 

 

 

 

 

 

 

 

External customers

 

$

8,300

 

$

7,907

 

$

24,104

 

$

24,839

 

Affiliates

 

21,345

 

20,752

 

62,788

 

60,617

 

Total firm commitments

 

29,645

 

28,659

 

86,892

 

85,456

 

Variable:

 

 

 

 

 

 

 

 

 

Terminaling services fees, net:

 

 

 

 

 

 

 

 

 

External customers

 

562

 

450

 

1,985

 

1,991

 

Affiliates

 

(40

)

(73

)

(100

)

(129

)

Total

 

522

 

377

 

1,885

 

1,862

 

Pipeline transportation fees

 

1,268

 

1,069

 

3,994

 

3,242

 

Management fees and reimbursed costs

 

1,531

 

1,126

 

4,274

 

2,709

 

Other

 

5,908

 

5,854

 

19,104

 

19,784

 

Total variable

 

9,229

 

8,426

 

29,257

 

27,597

 

Total revenue

 

$

38,874

 

$

37,085

 

$

116,149

 

$

113,053

 

 

The amount of revenue recognized as “firm commitments” based on the remaining contractual terms of the terminaling services agreements that generated “firm commitments” for the nine months ended September 30, 2012 was as follows (in thousands):

 

 

 

At
September 30,
2012

 

Remaining terms on terminaling services agreements that generated “firm commitments”:

 

 

 

Less than 1 year remaining

 

$

11,958

 

1 year or more, but less than 3 years remaining

 

61,405

 

3 years or more, but less than 5 years remaining

 

9,705

 

5 years or more remaining

 

3,824

 

Total firm commitments for the nine months ended September 30, 2012

 

$

86,892

 

 

2



 

RECENT DEVELOPMENTS

 

As of August 1, 2012 we completed the construction of one million barrels of crude oil storage tankage in Cushing, Oklahoma. As previously disclosed, we have entered into a long-term terminaling services agreement with Morgan Stanley Capital Group for the use of this facility. Under this agreement, Morgan Stanley Capital Group agreed to throughput a volume of crude oil at our Cushing, Oklahoma terminal that will, at the fee schedule contained in the agreement, result in minimum throughput payments to us of approximately $4.3 million for each one-year period following the in-service date of August 1, 2012 through July 31, 2019.

 

On October 15, 2012, we announced a distribution of $0.64 per unit for the period from July 1, 2012 through September 30, 2012, payable on November 6, 2012 to unitholders of record on October 31, 2012.

 

3



 

LIQUIDITY AND CAPITAL RESOURCES

 

TransMontaigne Partners also released the following statements regarding its current liquidity and capital resources:

 

·                  Our primary liquidity needs are to fund our working capital requirements, distributions to unitholders, approved capital projects and approved future expansion, development and acquisition opportunities. As a result of Morgan Stanley’s October 2011 decision not to approve any “significant” acquisition or investment that we may propose for the foreseeable future, we anticipate that Morgan Stanley’s decision will significantly constrain our ability to grow our business as we have previously disclosed we were seeking to do.  We cannot currently predict how Morgan Stanley’s decision and any such regulatory developments will otherwise affect Morgan Stanley’s commodities business or the growth or development of our business, our financial condition or results of operations, or how significant any such effects could be. Further discussion of Morgan Stanley’s current position with respect to approval of any proposed acquisitions and investments and the potential impact of such decision is set forth under the captions “Item 1.A. Risk Factors” and “Regulatory Matters” in Item 7 of our Annual Report on Form 10-K/A, Amendment No. 1, filed on May 3, 2012.

 

·                  We anticipate an increase in our repairs and maintenance expenses during the fourth quarter of 2012 across our terminaling and transportation facilities. We believe that we will be able to generate sufficient cash from operations in the future to fund our working capital requirements and our distributions to unitholders.

 

·                  We expect to initially fund our approved capital projects and our approved future expansion, development and acquisition opportunities, if any, with additional borrowings under our amended and restated senior secured credit facility, or credit facility.  After initially funding expenditures for approved capital projects and approved future expansion, development and acquisition opportunities, if any, with borrowings under our credit facility, we may raise funds through additional equity offerings and debt financings, which may include the issuance of senior unsecured notes.  The proceeds of such equity offerings and debt financings may then be used to reduce our outstanding borrowings under our credit facility.

 

·                  Our credit facility provides for a maximum borrowing line of credit equal to $250 million.  At our request, subject to the approval of the administrative agent and the receipt of additional commitments from one or more lenders, the maximum borrowings under the credit facility can be increased by up to an additional $100 million.  The terms of the credit facility also permit us to issue senior unsecured notes. The credit facility became effective March 9, 2011 and expires on March 9, 2016.  At September 30, 2012, our outstanding borrowings were $102 million.

 

·                  Management and the board of directors of our general partner have approved capital projects with estimated completion dates that extend through 2013.  At September 30, 2012, the remaining capital expenditures to complete the approved capital projects are estimated to range from $3 million to $5 million. We expect to fund our capital expenditures with additional borrowings under our credit facility.

 

4



 

Attachment A contains additional selected financial information and results of operations and Attachment B contains a computation of our distributable cash flow.

 

CONFERENCE CALL

 

TransMontaigne Partners L.P. previously announced that it has scheduled a conference call for Tuesday, November 6, 2012 at 11:00 a.m. (ET) regarding the above information. Analysts, investors and other interested parties are invited to listen to management’s presentation of the Company’s results and supplemental financial information by accessing the call as follows:

 

(800) 288-8975

Ask for:

TransMontaigne Partners

 

A playback of the conference call will be available from 1:00 p.m. (ET) on Tuesday, November 6, 2012 until 11:59 p.m. (ET) on Tuesday, November 13, 2012 by calling:

 

USA:  (800) 475-6701

International:  (320) 365-3844

Access Code:  270089

 

5



 

ATTACHMENT A

SELECTED FINANCIAL INFORMATION AND RESULTS OF OPERATIONS

 

The following selected financial information is extracted from the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2012, which was filed on November 6, 2012 with the Securities and Exchange Commission (in thousands, except per unit amounts):

 

 

 

Three Months Ended

 

 

 

September 30,
2012

 

September 30,
2011

 

Income Statement Data

 

 

 

 

 

Revenue

 

$

38,874

 

$

37,085

 

Direct operating costs and expenses

 

(16,170

)

(16,490

)

Direct general and administrative expenses

 

(1,204

)

(1,060

)

Operating income

 

10,700

 

8,625

 

Net earnings

 

9,853

 

7,666

 

Net earnings allocable to limited partners

 

8,525

 

6,659

 

Net earnings per limited partner unit—basic

 

$

0.59

 

$

0.46

 

 

 

 

September 30,
2012

 

December 31,
2011

 

Balance Sheet Data

 

 

 

 

 

Property, plant and equipment, net

 

$

428,082

 

$

431,782

 

Investment in joint venture

 

25,836

 

25,875

 

Goodwill

 

8,739

 

8,716

 

Total assets

 

492,249

 

514,104

 

Long-term debt

 

102,000

 

120,000

 

Partners’ equity

 

352,432

 

351,876

 

 

6



 

Selected results of operations data for each of the quarters in the years ended December 31, 2012 and 2011 are summarized below (in thousands):

 

 

 

Three months ended

 

Year ending

 

 

 

March 31,
2012

 

June 30,
2012

 

September 30,
2012

 

December 31,
2012

 

December 31,
2012

 

Revenue

 

$

38,833

 

$

38,442

 

$

38,874

 

$

 

$

116,149

 

Direct operating costs and expenses

 

(13,969

)

(16,184

)

(16,170

)

 

(46,323

)

Direct general and administrative expenses

 

(3,188

)

785

 

(1,204

)

 

(3,607

)

Allocated general and administrative expenses

 

(2,695

)

(2,695

)

(2,695

)

 

(8,085

)

Allocated insurance expense

 

(897

)

(898

)

(897

)

 

(2,692

)

Reimbursement of bonus awards

 

(313

)

(312

)

(313

)

 

(938

)

Depreciation and amortization

 

(6,930

)

(6,940

)

(7,112

)

 

(20,982

)

Gain on disposition of assets

 

 

 

 

 

 

Equity in earnings of joint venture

 

107

 

328

 

217

 

 

652

 

Operating income

 

10,948

 

12,526

 

10,700

 

 

34,174

 

Other expenses, net

 

(806

)

(872

)

(847

)

 

(2,525

)

Net earnings

 

$

10,142

 

$

11,654

 

$

9,853

 

$

 

$

31,649

 

 

 

 

Three months ended

 

Year ending

 

 

 

March 31,
2011

 

June 30,
2011

 

September 30,
2011

 

December 31,
2011

 

December 31,
2011

 

Revenue

 

$

39,136

 

$

36,832

 

$

37,085

 

$

39,239

 

$

152,292

 

Direct operating costs and expenses

 

(14,577

)

(17,636

)

(16,490

)

(15,795

)

(64,498

)

Direct general and administrative expenses

 

(1,365

)

(815

)

(1,060

)

(1,463

)

(4,703

)

Allocated general and administrative expenses

 

(2,616

)

(2,617

)

(2,616

)

(2,617

)

(10,466

)

Allocated insurance expense

 

(823

)

(822

)

(823

)

(822

)

(3,290

)

Reimbursement of bonus awards

 

(313

)

(312

)

(313

)

(312

)

(1,250

)

Depreciation and amortization

 

(7,138

)

(6,722

)

(6,873

)

(6,921

)

(27,654

)

Gain on disposition of assets

 

 

9,576

 

 

 

9,576

 

Equity in earnings (loss) of joint venture

 

 

233

 

(285

)

165

 

113

 

Operating income

 

12,304

 

17,717

 

8,625

 

11,474

 

50,120

 

Other expenses, net

 

(978

)

(689

)

(959

)

(974

)

(3,600

)

Net earnings

 

$

11,326

 

$

17,028

 

$

7,666

 

$

10,500

 

$

46,520

 

 

7



 

ATTACHMENT B

DISTRIBUTABLE CASH FLOW

 

The following summarizes our distributable cash flow for the periods indicated (in thousands):

 

 

 

July 1, 2012
through
September 30,
2012

 

January 1, 2012
through
September 30,
2012

 

 

 

 

 

 

 

Net earnings

 

$

9,853

 

$

31,649

 

Depreciation and amortization

 

7,112

 

20,982

 

Amounts due under long-term terminaling services agreements, net

 

179

 

447

 

Amortization of deferred revenue—projects

 

(1,173

)

(3,451

)

Payments received upon completion of projects, (reserve)/reversal

 

696

 

1,733

 

Deferred equity-based compensation

 

114

 

321

 

Distributions paid to holders of restricted phantom units

 

(12

)

(61

)

Cash paid for purchase of common units

 

(276

)

(391

)

Equity in earnings of joint venture

 

(217

)

(652

)

Distributions received from joint venture

 

361

 

1,192

 

Maintenance capital expenditures

 

(1,296

)

(3,932

)

“Distributable cash flow” generated during the period

 

$

15,341

 

$

47,837

 

 

 

 

 

 

 

Actual distribution for the period on all common units and the general partner interest including incentive distribution rights

 

$

10,596

 

$

31,498

 

 

Distributable cash flow is not a computation based upon generally accepted accounting principles.  The amounts included in the computation of our distributable cash flow are derived from amounts separately presented in our consolidated financial statements, notes thereto and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations”  in our Quarterly Report on Form 10-Q for the three months ended September 30, 2012, which was filed with the Securities and Exchange Commission on November 6, 2012.   Distributable cash flow should not be considered in isolation or as an alternative to net earnings or operating income, as an indication of our operating performance, or as an alternative to cash flows from operating activities as a measure of liquidity.  Distributable cash flow is not necessarily comparable to similarly titled measures of other companies. Distributable cash flow is presented here because it is a widely accepted financial indicator used to compare partnership performance.   We believe that this measure provides investors an enhanced perspective of the operating performance of our assets, the cash we are generating and our ability to make distributions to our unitholders and our general partner.

 

8



 

About TransMontaigne Partners L.P.

 

TransMontaigne Partners L.P. is a terminaling and transportation company based in Denver, Colorado with operations primarily in the United States along the Gulf Coast, in the Midwest, in Brownsville, Texas, along the Mississippi and Ohio Rivers, and in the Southeast.  We provide integrated terminaling, storage, transportation and related services for customers engaged in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products.  Light refined products include gasolines, diesel fuels, heating oil and jet fuels; heavy refined products include residual fuel oils and asphalt.  We do not purchase or market products that we handle or transport.  News and additional information about TransMontaigne Partners L.P. is available on our website www.transmontaignepartners.com.

 

Forward-Looking Statements

 

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Although the company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Important factors that could cause actual results to differ materially from the company’s expectations and may adversely affect its business and results of operations are disclosed in “Item 1A. Risk Factors” in the company’s Annual Report on Form 10-K/A, Amendment No. 1, for the year ended December 31, 2011, filed with the Securities and Exchange Commission on May 3, 2012.

 

-END-

 

9