July 29, 2016 - 6:30 AM EDT
Print Email Article Font Down Font Up Charts

PBF Logistics Increases Quarterly Distribution to $0.43 per Common Unit and Announces Second Quarter 2016 Earnings Results

- Completed first third-party acquisition - Second quarter net income of $16.3 million, or $0.41 per common unit, and EBITDA of $26.0 million - Increased quarterly distribution to $0.43 per common unit, representing a 43% increase versus the Partnership's minimum quarterly distribution

PARSIPPANY, N.J., July 29, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") announced today second quarter 2016 net income of $16.3 million, or $0.41 per common unit. During the second quarter, the Partnership generated cash from operations of approximately $17.0 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $26.0 million and distributable cash flow of $20.0 million. Included in our general and administrative expenses for the second quarter are $3.5 million, or $0.10 per common unit, of transaction expenses related to the acquisition of four refined products terminals (the "East Coast Terminals") from an affiliate of Plains All American Pipeline L.P. and expenses related to unit-based compensation in conjunction with a senior executive retirement.

"During the second quarter our assets performed well and, with the completion of the East Coast Terminals acquisition in April, we increased our asset base and introduced third-party revenue to our growing business. The integration of the East Coast Terminals into our legacy East Coast assets went well and we have commenced the necessary infrastructure investments to expand the East Coast Terminals and generate additional revenue," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. "We are pleased that the board of directors has approved an increase in our quarterly distribution to $0.43 per common unit. We look forward to continuing to execute our growth strategy for the Partnership and create additional value for our unitholders."

As of June 30, 2016, the Partnership had approximately $315 million of liquidity, including $49.9 million in cash and cash equivalents and access to approximately $265 million under its existing revolving credit facility. The Partnership intends to use its financial resources to fund organic growth projects at the Partnership and future drop-down and third-party acquisitions.

PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.43 per common unit. The distribution is payable on August 23, 2016, to unitholders of record at the close of business on August 9, 2016.

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
This earnings release, and the discussion during the management conference call, may include references to non-GAAP financial measures including, but not limited to, EBITDA and distributable cash flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBFX's non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP financial measures used in this release and reconciliations to the most directly comparable GAAP measures.

Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding quarterly results and other business matters on Friday, July 29, 2016, at 11:00 a.m. ET. The call can also be heard by dialing (888) 632-3381 or (785) 424-1678, conference ID: PBFXQ216. The audio replay will be available two hours after the end of the call through August 14, 2016, by dialing (800) 753-5575 or (402) 220-0683. The call is being webcast and can be accessed on the Partnership's website, http://www.pbflogistics.com.

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 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 the Annual Report on Form 10-K. 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)

Factors Affecting Comparability

The following tables present our results of operations, related operational information, and a reconciliations of net income and net cash provided by operating activity to EBITDA and distributable cash flows (both as defined below) of PBFX for the three and six months ended June 30, 2016 and 2015.  The financial information presented contains the financial results of PBFX and the Delaware City Products Pipeline and Truck Rack prior to its acquisition by PBFX on May 14, 2015. The Delaware City Products Pipeline and Truck Rack include a products pipeline (the "Delaware City Products Pipeline"), truck rack and related facilities located at PBF Energy's Delaware city refinery. The Delaware City Products Pipeline and Truck Rack were acquired from subsidiaries of our indirect parent company, PBF Energy Inc. ("PBF Energy"). The results of the Delaware City Products Pipeline and Truck Rack are included in the Transportation and Terminaling segment.

The Delaware City Products Pipeline was the only asset that recorded revenue for transactions with PBF Energy prior to our acquisition of the Delaware City Products Pipeline and Truck Rack from PBF Energy Company LLC ("PBF LLC"). Affiliate revenues have been recorded for the Delaware City Products Pipeline and Truck Rack subsequent to the commencement of the commercial agreements with PBF Energy.

On April 29, 2016, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), purchased four refined product terminals (the "East Coast Terminals"), including a storage facility to service the East Coast Terminals, from an affiliate of Plains All American Pipeline, L.P. (the "Plains Asset Purchase") which has subsequently generated third party revenues. Prior to the Plains Asset Purchase, we did not record third-party revenue, except for third party revenue generated by the Delaware Pipeline Company ("DPC") from charging fees for transporting refined products pursuant to an agreement with Morgan Stanley Capital Group Inc. prior to August 2013. Additionally, our results may not be comparable due to additional revenue, operating and maintenance expense and general and administrative expense associated with the East Coast Terminals.

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 interest expense, income tax expense, depreciation and amortization expense. We define distributable cash flow as EBITDA plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures 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 distributable cash flow divided by total distribution declared. Distributable cash flow and EBITDA are not financial measures prescribed by U.S. generally accepted accounting principles ("GAAP").

While EBITDA and distributable cash flow are not financial measures prescribed by U.S. GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our 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 returns on investment of various investment opportunities.

We believe that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. 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.

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, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP.

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

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except unit and per unit data)


















Three Months Ended June 30,


Six Months Ended June 30,







2016


2015


2016


2015









Revenue:









Affiliates

$

37,965



$

34,868



$

74,514



$

67,713



Third-Party

2,694





2,694




Total revenue

40,659



34,868



77,208



67,713












Costs and expenses:









Operating and maintenance expenses

7,720



4,768



13,741



13,202



General and administrative expenses

6,909



3,729



9,474



6,791



Depreciation and amortization expense

2,142



1,637



3,782



3,270


Total costs and expenses

16,771



10,134



26,997



23,263















Income from operations

23,888



24,734



50,211



44,450











Other expense:









Interest expense, net

(7,212)



(4,624)



(14,018)



(6,418)



Amortization of loan fees

(422)



(306)



(845)



(467)


Net income

16,254



19,804



35,348



37,565



Less: Net income attributable to Predecessor



221





1,274


Net income attributable to the Partnership

$

16,254



$

19,583



$

35,348



$

36,291











Net income per limited partner unit:









Common units - basic

$

0.41



$

0.58



$

0.94



$

1.09



Common units - diluted

0.41



0.58



0.94



1.09



Subordinated units - basic and diluted

0.41



0.58



0.95



1.09













Weighted-average limited partner units outstanding:









Common units - basic

21,248,969



17,776,831



19,873,294



17,442,561



Common units - diluted

21,264,690



17,801,429



19,881,339



17,455,155



Subordinated units - basic and diluted

15,886,553



15,886,553



15,886,553



15,886,553
















Cash distributions declared per unit

$

0.43



$

0.37



$

0.85



$

0.72















See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION

(Unaudited, amounts in thousands except as indicated)




















Three Months Ended June 30,


Six Months Ended June 30,







2016


2015


2016


2015

Key Operating Information:








Throughput (barrels per day ("bpd")) (c)









DCR Rail Terminal

41.7


47.5


36.0


48.1


DCR West Rack

9.9


11.4


10.4


24.2


Toledo Truck Terminal

18.8


13.7


17.6


10.0


Toledo Storage Facility (Propane Loading)

5.4


4.2


5.0


4.2


Delaware City Products Pipeline

60.4


49.3


48.2


48.7


Delaware City Truck Rack

34.4


36.4


32.3


36.4


East Coast Terminals

61.6


N/A


61.6


N/A

Total throughput (barrels)









DCR Rail Terminal

3,797.6


4,324.6


6,547.2


8,714.7


DCR West Rack

896.6


1,033.9


1,887.7


4,379.8


Toledo Truck Terminal

1,706.3


1,245.0


3,201.8


1,812.6


Toledo Storage Facility (Propane Loading)

489.6


385.4


910.6


757.2


Delaware City Products Pipeline

5,495.9


4,489.3


8,776.1


8,820.9


Delaware City Truck Rack

3,128.8


1,712.1


5,883.3


1,712.1


East Coast Terminals

3,821.4


N/A


3,821.4


N/A

Total

19,336.2


13,190.3


31,028.1


26,197.3













Storage capacity reserved (average shell capacity barrels
per month) (d)









Toledo Storage Facility


3,574.6


3,484.7


3,614.6


3,583.6



























Cash Flow Information:









Net cash provided by (used in):










Operating activities

$

16,998


$

20,089


$

42,843


$

37,988



Investing activities

(1,699)


551


(2,278)


479



Financing activities

5,320


(34,159)


(9,360)


(45,972)




Net change in cash



$

20,619


$

(13,519)


$

31,205


$

(7,505)














Other Financial Information:









EBITDA attributable to PBFX (b)

$

26,030


$

26,063


$

53,993


$

46,183


Distributable cash flow (b)

$

20,038


$

22,119


$

41,485


$

41,365


Quarterly distribution declared per unit (e)

$

0.43


$

0.37


$

0.85


$

0.72


Distribution: (e)










Common units - public

$

8,366


$

6,049


$

16,536


$

11,773



Common units - PBF LLC

1,106


952


2,187


1,853



Subordinated units - PBF LLC

6,831


5,878


13,503


11,438



IDR holder - PBF LLC

882


151


1,639


181




Total distribution

$

17,185


$

13,030


$

33,865


$

25,245




Coverage ratio (b)



1.17x


1.70x


1.23x


1.64x


Capital expenditures (f)

$

99,963


$

144


$

100,402


$

220














See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION

(Unaudited, amounts in thousands except as indicated)

























June 30,


December 31,

Balance Sheet Information:


2016


2015







Cash, cash equivalents and marketable securities (g)

$

186,027



$

252,936



Property, plant and equipment, net

243,188



145,548



Total assets

458,582



422,902



Total debt (g)

570,842



599,635



Total liabilities

586,595



608,577



Partners' equity

(128,013)



(185,675)



Total liabilities and equity

458,582



422,902











See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP

TO EBITDA AND DISTRIBUTABLE CASH FLOW

(Unaudited, in thousands)






















Three Months Ended June 30,


Six Months Ended June 30,








2016


2015


2016


2015















Reconciliation of net income to EBITDA and distributable cash
flow (b):









 Net income

$

16,254



$

19,804



$

35,348



$

37,565




Interest expense, net

7,212



4,624



14,018



6,418




Amortization of loan fees

422



306



845



467




Depreciation and amortization

2,142



1,637



3,782



3,270



 EBITDA

26,030



26,371



53,993



47,720




Less: Predecessor EBITDA



308





1,537



 EBITDA attributable to PBFX

26,030



26,063



53,993



46,183




Non-cash unit-based compensation expense

1,981



683



2,710



1,613




Interest expense, net

(7,212)



(4,627)



(14,018)



(6,431)




Maintenance capital expenditures

(761)





(1,200)







 Distributable cash flow

$

20,038



$

22,119



$

41,485



$

41,365
















Reconciliation of net cash provided by operating activities to
EBITDA and distributable cash flow (b):









 Net cash provided by operating activities

$

16,998



$

20,089



$

42,843



$

37,988




Change in current assets and liabilities

3,801



2,341



(158)



4,927




Interest expense, net

7,212



4,624



14,018



6,418




Non-cash unit-based compensation expense

(1,981)



(683)



(2,710)



(1,613)



 EBITDA

26,030



26,371



53,993



47,720




Less: Predecessor EBITDA



308





1,537



 EBITDA attributable to PBFX

26,030



26,063



53,993



46,183




Non-cash unit-based compensation expense

1,981



683



2,710



1,613




Interest expense, net

(7,212)



(4,627)



(14,018)



(6,431)




Maintenance capital expenditures

(761)





(1,200)







 Distributable cash flow

$

20,038



$

22,119



$

41,485



$

41,365
















See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION

(Unaudited, in thousands)












Three Months Ended June 30, 2016



Transportation
and Terminaling


Storage


Corporate


Consolidated
Total

Revenues (a)


$

35,297



$

5,362



$



$

40,659


Depreciation and amortization expense


1,556



586





2,142


Income (loss) from operations


28,323



2,474



(6,909)



23,888


Interest expense, net and amortization of loan fees






7,634



7,634


Capital expenditures (f)


99,202



761





99,963













Three Months Ended June 30, 2015



Transportation
and Terminaling


Storage


Corporate


Consolidated
Total

Revenues (a)


$

29,642



$

5,226



$



$

34,868


Depreciation and amortization expense


993



644





1,637


Income (loss) from operations


25,620



2,843



(3,729)



24,734


Interest expense, net and amortization of loan fees






4,930



4,930


Capital expenditures


144







144













Six Months Ended June 30, 2016



Transportation
and Terminaling


Storage


Corporate


Consolidated
Total

Revenues (a)


$

66,364



$

10,844



$



$

77,208


Depreciation and amortization expense


2,547



1,235





3,782


Income (loss) from operations


54,270



5,415



(9,474)



50,211


Interest expense, net and amortization of loan fees






14,863



14,863


Capital expenditures (f)


99,202



1,200





100,402













Six Months Ended June 30, 2015



Transportation and Terminaling


Storage


Corporate


Consolidated Total

Revenues (a)


$

56,962



$

10,751



$



$

67,713


Depreciation and amortization expense


1,984



1,286





3,270


Income (loss) from operations


45,422



5,819



(6,791)



44,450


Interest expense, net and amortization of loan fees






6,885



6,885


Capital expenditures


220







220













Balance at June 30, 2016



Transportation and Terminaling


Storage


Corporate


Consolidated Total

Total assets


$

214,721



$

57,209



$

186,652



$

458,582













Balance at December 31, 2015



Transportation and Terminaling


Storage


Corporate


Consolidated Total

Total assets


$

112,826



$

56,846



$

253,230



$

422,902











See Footnotes to Earnings Release Tables

 

 

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 3. The Partnership's results of operations may not be comparable to the historical results of operations for the reasons described below:

Revenues - Delaware City Products Pipeline was the only asset that recorded revenue for transactions with PBF Energy prior to our acquisitions of the Delaware City Products Pipeline and Truck Rack from PBF LLC, as discussed under "Factors Affecting Comparability." Commercial agreements with PBF Energy for the Delaware Products Pipeline and Truck Rack commenced subsequent to its acquisition by PBFX on May 14, 2015

On April 29, 2016, our wholly-owned subsidiary, PLPT, purchased the East Coast Terminals, which has subsequently generated third party revenues. Prior to the Plains Asset Purchase, we did not record third-party revenue, except for third party revenue generated by DPC from charging fees for transporting refined products pursuant to an agreement with Morgan Stanley Capital Group Inc. prior to August 2013. Additionally, our results may not be comparable due to additional revenue associated with the East Coast Terminals subsequent to the close of the acquisition













(b)


See "Non-GAAP Financial Measures" on page 3 for definitions of EBITDA, distributable cash flow and coverage ratio













(c)


Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisition of the Delaware City Products Pipeline and Truck Rack from PBF, with the exception of the Delaware City Products Pipeline which recognized revenue prior to its acquisition by PBFX and activity subsequent to the Plains Asset Purchase




(d)


Operating information pertains to assets which are included in the Storage segment




(e)


On July 29, 2016, we announced a quarterly cash distribution of $0.43 per common unit for the second quarter of 2016













(f)


Capital expenditures include the Plains Asset Purchase of $98,336













(g)


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 and marketable securities from total debt. We believe this measurement is also useful to investors since our marketable securities fully collateralize our Term Loan and 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. The Partnership's net debt as of June 30, 2016 and December 31, 2015 was $384,815 and $346,699, respectively

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pbf-logistics-increases-quarterly-distribution-to-043-per-common-unit-and-announces-second-quarter-2016-earnings-results-300306126.html

SOURCE PBF Logistics LP


Source: PR Newswire (July 29, 2016 - 6:30 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice