USD Partners LP Announces Fourth Quarter and Full Year 2015 Results
USD Partners LP (NYSE: USDP) (the “Partnership”) announced today its
operating and financial results for the three and twelve months ended
December 31, 2015. Highlights with respect to the fourth quarter of 2015
include the following:
-
Acquired strategically-located and complementary crude oil terminal
with 900,000 barrels of storage capacity in Casper, Wyoming, for
approximately $225 million
-
Increased borrowing capacity by $100 million to a total of $400
million under its senior secured credit agreement
-
Increased quarterly cash distribution to $0.30 per unit ($1.20 per
unit on an annualized basis)
-
Reported Adjusted EBITDA of $12.8 million and Distributable Cash Flow
of $10.3 million
-
Reported Net Income of $6.7 million
-
Ended quarter with approximately $168 million of available liquidity
“The Partnership’s high quality and predictable cash flows, enhanced by
our recent Casper terminal acquisition, enable us to stay focused on the
opportunities ahead,” said Dan Borgen, the Partnership’s Chief Executive
Officer. “We are pleased with the performance of our assets, our safety
record and our ability to deliver growth to our unitholders in 2015.”
Terminalling Services Segment
For the fourth quarter of 2015, the Partnership’s Terminalling services
segment generated Adjusted EBITDA of approximately $13.8 million and
Income from Continuing Operations of approximately $9.0 million. The
Partnership’s Terminalling services segment includes the Hardisty,
Casper, San Antonio and West Colton terminals. Fourth quarter results
include a partial quarter contribution from the Casper terminal
acquisition which closed on November 17, 2015.
Hardisty Terminal
Substantially all of the capacity at the Partnership’s Hardisty terminal
is contracted under multi-year, take-or-pay terminal services agreements
that extend through mid-2019. All of the terminal services agreements
have renewal options and are subject to inflation-based escalators.
Approximately 83% of the Hardisty terminal’s utilization is contracted
with subsidiaries of five investment grade companies that include major
integrated oil companies, refiners and marketers.
The Partnership’s Adjusted EBITDA for the fourth quarter of 2015
includes a net adjustment of $(0.6) million associated with deferred
revenues. The adjustment includes cash receipts in excess of charges
implied by actual throughput during the quarter, reduced by amounts
related to the recognition of previously deferred revenue, as well as
adjustments for corresponding pipeline fees payable to Gibson Energy,
which are recognized as an expense concurrently with the recognition of
revenue.
Adjusted EBITDA attributable to the Hardisty terminal was negatively
impacted by the continued decline in the value of the Canadian dollar
relative to the U.S. dollar during the fourth quarter, which was
partially offset by $1.4 million received from the settlement of
derivative contracts the Partnership has put in place to limit the
impact of fluctuations in foreign exchange rates.
Casper Terminal
On October 12, 2015, the Partnership announced it had agreed to acquire
100% of the equity interests of Casper Crude to Rail, LLC, or the Casper
terminal, for total consideration of approximately $225.0 million,
subject to closing adjustments. The purchase price included
approximately $210.0 million of cash (from credit facility borrowings
and available cash) and approximately 1.7 million limited partner units
issued to certain of the sellers. The Partnership closed the acquisition
of the Casper terminal on November 17, 2015.
The Casper terminal commenced operations in September 2014 and is
supported by multi-year, take-or-pay agreements with primarily
investment grade refiner customers. The initial terms of the agreements
vary from three to five years, with extension or renewal options for one
to three additional years.
Adjusted EBITDA attributable to the Casper terminal for the fourth
quarter of 2015 was approximately $2.6 million, which included
approximately $0.5 million of one-time transaction expenses associated
with the Partnership’s acquisition of the terminal. As previously noted,
results for the Casper terminal reflect a partial quarter period
beginning November 17, 2015, the acquisition closing date. The Casper
terminal is expected to contribute approximately $26 million of Adjusted
EBITDA in 2016 based on minimum contracted payments.
San Antonio and West Colton Terminals
Average throughput for the fourth quarter of 2015 was approximately
10,700 barrels per day at the Partnership’s San Antonio terminal and
approximately 5,300 barrels per day at the Partnership’s West Colton
terminal, which represents increases of approximately 2% and 1%,
respectively, relative to the prior quarter.
The Partnership’s San Antonio and West Colton terminals operate under
traditional fee-for-service arrangements that provide fixed fees per
gallon of ethanol transloaded at each terminal.
Fleet Services Segment
During the fourth quarter of 2015, the Partnership’s Fleet services
segment generated Adjusted EBITDA of approximately $0.5 million and
Income from Continuing Operations of approximately $0.5 million.
The Partnership’s Fleet services segment provides customers with
railcars and fleet services related to the transportation of liquid
hydrocarbons and biofuels by rail under multi-year, take-or-pay
contracts for periods ranging from five to nine years. Our customers
typically pay monthly fees per railcar which include a component for
railcar use and a component for fleet services.
Capitalization and Liquidity
On November 13, 2015, the Partnership amended its senior secured credit
agreement to increase its borrowing capacity by $100 million to a total
of $400 million, supported by the Partnership’s existing lenders and by
the addition of Goldman Sachs Bank USA to the bank group. The
Partnership also reset its ability to request an additional $100 million
of incremental revolving credit facility commitments, subject to
receiving increased commitments from lenders or other financial
institutions and satisfaction of certain conditions. All other terms and
conditions of the existing agreement remained unchanged.
As of December 31, 2015, the Partnership had total available liquidity
of approximately $168.0 million, subject to continued compliance with
financial covenants, including $10.5 million of unrestricted cash and
cash equivalents and undrawn borrowing capacity of $157.5 million on its
$400.0 million senior secured credit facility. The Partnership had
$242.5 million of total debt outstanding as of December 31, 2015.
The Partnership is in compliance with its financial covenants and has no
maturities under its senior secured credit facility until July 2019.
As of December 31, 2015, the Partnership had outstanding 11.9 million
common units, 10.5 million subordinated units, 185,000 Class A units,
461,136 general partner units and 397,553 phantom units associated with
its long-term incentive program.
Fourth Quarter 2015 Distribution
On February 4, 2016, the Partnership announced a $0.30 per unit
quarterly cash distribution with respect to the fourth quarter of 2015,
or $1.20 per unit on an annualized basis. The distribution represents an
increase of $0.0075 per unit over the prior quarter and was paid on
February 19, 2016, to unitholders of record as of the close of business
on February 15, 2016.
Fourth Quarter 2015 Conference Call Information
The Partnership will host a conference call and webcast regarding its
fourth quarter results at 11:00 a.m. Eastern Time (10:00 a.m. Central
Time) on Thursday, March 10, 2016.
To listen live over the Internet, participants are advised to log on to
the Partnership’s website at www.usdpartners.com
and select the “Events & Presentations” sub-tab under the “Investors”
tab. To join via telephone, participants may dial (877) 266-7551
domestically or +1 (339) 368-5209 internationally, conference ID
26214099. Participants are advised to dial in at least five minutes
prior to the call.
An audio replay of the conference call will be available for thirty days
by dialing (800) 585-8367 domestically or +1 (404) 537-3406
internationally, conference ID 26214099. In addition, a replay of the
audio webcast will be available by accessing the Partnership's website
after the call is concluded.
About USD Partners LP
The Partnership is a fee-based, growth-oriented master limited
partnership formed by US Development Group LLC to acquire, develop and
operate energy-related logistics assets, including rail terminals and
other high-quality and complementary midstream infrastructure. The
Partnership generates substantially all of its operating cash flow from
multi-year, take-or-pay contracts for terminalling services. The
Partnership’s assets consist primarily of: (i) a crude oil origination
terminal in Hardisty, Alberta, Canada, with capacity to load up to two
120-railcar unit trains per day, (ii) a crude oil terminal in Casper,
Wyoming, with unit train-capable railcar loading capacity in excess of
100,000 barrels per day and six customer-dedicated storage tanks with
900,000 barrels of total capacity and (iii) two unit train-capable
ethanol destination rail terminals in San Antonio, Texas, and West
Colton, California. In addition, the Partnership provides railcar
services through the management of a railcar fleet that is committed to
customers on a long-term basis.
Non-GAAP Financial Measures
We define Adjusted EBITDA as net income before depreciation and
amortization, interest and other income, interest and other expense,
unrealized gains and losses associated with derivative instruments,
foreign currency transaction gains and losses, income taxes, non-cash
expense related to our equity compensation programs, discontinued
operations, adjustments related to deferred revenue associated with
minimum monthly commitment fees and other items which management does
not believe reflect the underlying performance of our business. Adjusted
EBITDA is a non-GAAP, supplemental financial measure used by management
and by external users of our financial statements, such as investors and
commercial banks, to assess:
-
our operating performance as compared to those of other companies in
the midstream sector, without regard to financing methods, historical
cost basis or capital structure;
-
the ability of our assets to generate sufficient cash flow to make
distributions to our partners;
-
our ability to incur and service debt and fund capital expenditures;
and
-
the viability of acquisitions and other capital expenditure projects
and our ability to generate incremental cash flows from these
opportunities.
We believe that the presentation of Adjusted EBITDA provides information
useful to investors in assessing our financial condition and results of
operations. We further believe that the presentation of Adjusted EBITDA
enhances investors’ understanding of our ability to generate cash for
payment of distributions and other purposes. The GAAP measures most
directly comparable to Adjusted EBITDA are Net Income and Cash Flows
from Operating Activities. Adjusted EBITDA should not be considered an
alternative to Net Income, Cash Flows from Operating Activities or any
other measure of financial performance or liquidity presented in
accordance with GAAP. Adjusted EBITDA excludes some, but not all, items
that affect Net Income, and these measures may vary among other
companies. As a result, Adjusted EBITDA may not be comparable to
similarly titled measures of other companies.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of U.S. federal securities laws, including statements related to
the expected minimum 2016 Adjusted EBITDA contribution of the Casper
terminal, the Partnership’s liquidity, and the Partnership’s ability to
execute on its plans. Words and phrases such as “is expected,” “is
planned,” “believes,” “projects,” and similar expressions are used to
identify such forward-looking statements. However, the absence of these
words does not mean that a statement is not forward-looking.
Forward-looking statements relating to the Partnership are based on
management’s expectations, estimates and projections about the
Partnership, its interests and the energy industry in general on the
date this press release was issued. These statements are not guarantees
of future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual outcomes
and results may differ materially from what is expressed or forecast in
such forward-looking statements. Factors that could cause actual results
or events to differ materially from those described in the
forward-looking statements include those as set forth under the heading
“Risk Factors” in the Partnership’s most recent Annual Report on Form
10-K and in our subsequent filings with the Securities and Exchange
Commission. The Partnership is under no obligation (and expressly
disclaims any such obligation) to update or alter its forward-looking
statements, whether as a result of new information, future events or
otherwise.
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USD Partners LP
|
Consolidated Statements of Operations
|
For the Three Months and the Year Ended December 31, 2015 and 2014
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Year Ended
|
|
|
|
December 31,
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|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
(in thousands)
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Terminalling services
|
|
|
$
|
20,202
|
|
|
$
|
6,945
|
|
|
|
$
|
58,841
|
|
|
$
|
18,266
|
|
Terminalling services — related party
|
|
|
|
1,690
|
|
|
|
2,185
|
|
|
|
|
5,228
|
|
|
|
3,499
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|
Railroad incentives
|
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|
|
389
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|
|
|
142
|
|
|
|
|
434
|
|
|
|
719
|
|
Fleet leases
|
|
|
|
1,890
|
|
|
|
2,003
|
|
|
|
|
7,710
|
|
|
|
8,788
|
|
Fleet leases — related party
|
|
|
|
889
|
|
|
|
-
|
|
|
|
|
4,123
|
|
|
|
-
|
|
Fleet services
|
|
|
|
155
|
|
|
|
145
|
|
|
|
|
622
|
|
|
|
720
|
|
Fleet services — related party
|
|
|
|
617
|
|
|
|
417
|
|
|
|
|
2,840
|
|
|
|
1,501
|
|
Freight and other reimbursables
|
|
|
|
241
|
|
|
|
316
|
|
|
|
|
1,880
|
|
|
|
2,141
|
|
Freight and other reimbursables — related party
|
|
|
|
(10
|
)
|
|
|
38
|
|
|
|
|
85
|
|
|
|
464
|
|
Total revenues
|
|
|
|
26,063
|
|
|
|
12,191
|
|
|
|
|
81,763
|
|
|
|
36,098
|
|
Operating costs
|
|
|
|
|
|
|
|
|
|
|
Subcontracted rail services
|
|
|
|
1,726
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|
|
|
2,399
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|
|
|
|
7,710
|
|
|
|
6,994
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|
Pipeline fees
|
|
|
|
5,590
|
|
|
|
1,965
|
|
|
|
|
17,249
|
|
|
|
3,625
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|
Fleet leases
|
|
|
|
2,779
|
|
|
|
2,003
|
|
|
|
|
11,833
|
|
|
|
8,788
|
|
Freight and other reimbursables
|
|
|
|
231
|
|
|
|
354
|
|
|
|
|
1,965
|
|
|
|
2,605
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|
Selling, general & administrative
|
|
|
|
2,699
|
|
|
|
2,880
|
|
|
|
|
9,735
|
|
|
|
6,905
|
|
Selling, general & administrative — related party
|
|
|
|
1,341
|
|
|
|
900
|
|
|
|
|
4,707
|
|
|
|
3,903
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|
Depreciation and amortization
|
|
|
|
2,866
|
|
|
|
1,294
|
|
|
|
|
6,110
|
|
|
|
2,631
|
|
Total operating costs
|
|
|
|
17,232
|
|
|
|
11,795
|
|
|
|
|
59,309
|
|
|
|
35,451
|
|
Operating income
|
|
|
|
8,831
|
|
|
|
396
|
|
|
|
|
22,454
|
|
|
|
647
|
|
Interest expense
|
|
|
|
1,458
|
|
|
|
1,316
|
|
|
|
|
4,368
|
|
|
|
4,825
|
|
Gain associated with derivative contracts
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|
|
|
(1,089
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)
|
|
|
(963
|
)
|
|
|
|
(5,161
|
)
|
|
|
(1,536
|
)
|
Foreign currency transaction loss (gain)
|
|
|
|
180
|
|
|
|
1,171
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|
|
|
|
(201
|
)
|
|
|
4,850
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|
Income (loss) from continuing operations before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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provision for income taxes
|
|
|
|
8,282
|
|
|
|
(1,128
|
)
|
|
|
|
23,448
|
|
|
|
(7,492
|
)
|
Provision for income taxes
|
|
|
|
1,607
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|
|
|
101
|
|
|
|
|
5,755
|
|
|
|
186
|
|
Income (loss) from continuing operations
|
|
|
|
6,675
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|
|
|
(1,229
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)
|
|
|
|
17,693
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|
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|
(7,678
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)
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Discontinued operations
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|
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Income from discontinued operations
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|
|
|
-
|
|
|
|
152
|
|
|
|
|
-
|
|
|
|
-
|
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Net income (loss)
|
|
|
$
|
6,675
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|
|
$
|
(1,077
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)
|
|
|
$
|
17,693
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|
|
$
|
(7,678
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)
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|
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USD Partners LP
|
Consolidated Balance Sheets
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(unaudited)
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December 31,
|
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December 31,
|
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2015
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2014
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ASSETS
|
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(in thousands)
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Current assets
|
|
|
|
|
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Cash and cash equivalents
|
|
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$
|
10,500
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|
|
|
$
|
40,249
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Restricted cash
|
|
|
|
4,640
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|
|
|
|
6,490
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Accounts receivable, net
|
|
|
|
4,333
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|
|
|
|
4,221
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Accounts receivable — related party
|
|
|
|
1,889
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|
|
|
|
134
|
|
Prepaid expenses
|
|
|
|
10,191
|
|
|
|
|
4,248
|
|
Other current assets
|
|
|
|
3,908
|
|
|
|
|
6,122
|
|
Total current assets
|
|
|
|
35,461
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|
|
|
|
61,464
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|
Property and equipment, net
|
|
|
|
133,010
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|
|
|
|
84,059
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|
Intangible assets, net
|
|
|
|
124,581
|
|
|
|
|
-
|
|
Goodwill
|
|
|
|
33,970
|
|
|
|
|
-
|
|
Other non-current assets
|
|
|
|
1,376
|
|
|
|
|
2,757
|
|
Total assets
|
|
|
$
|
328,398
|
|
|
|
$
|
148,280
|
|
|
|
|
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LIABILITIES AND PARTNERS’ CAPITAL
|
|
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|
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Current liabilities
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
$
|
4,092
|
|
|
|
$
|
3,875
|
|
Accounts payable and accrued expenses — related party
|
|
|
|
232
|
|
|
|
|
492
|
|
Deferred revenue, current portion
|
|
|
|
22,158
|
|
|
|
|
15,540
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Deferred revenue, current portion — related party
|
|
|
|
5,485
|
|
|
|
|
5,256
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|
Other current liabilities
|
|
|
|
2,914
|
|
|
|
|
877
|
|
Total current liabilities
|
|
|
|
34,881
|
|
|
|
|
26,040
|
|
Long-term debt, net
|
|
|
|
239,444
|
|
|
|
|
78,458
|
|
Deferred revenue, net of current portion
|
|
|
|
2,022
|
|
|
|
|
3,656
|
|
Deferred revenue, net of current portion — related party
|
|
|
|
1,542
|
|
|
|
|
1,931
|
|
Non-current deferred income tax liability
|
|
|
|
749
|
|
|
|
|
-
|
|
Total liabilities
|
|
|
|
278,638
|
|
|
|
|
110,085
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Partners’ capital
|
|
|
|
|
|
|
Common units
|
|
|
|
141,374
|
|
|
|
|
127,865
|
|
Class A units
|
|
|
|
1,749
|
|
|
|
|
550
|
|
Subordinated units
|
|
|
|
(93,445
|
)
|
|
|
|
(90,214
|
)
|
General partner units
|
|
|
|
220
|
|
|
|
|
12
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(138
|
)
|
|
|
|
(18
|
)
|
Total partners' capital
|
|
|
|
49,760
|
|
|
|
|
38,195
|
|
Total liabilities and partners' capital
|
|
|
$
|
328,398
|
|
|
|
$
|
148,280
|
|
|
|
|
|
|
|
|
|
|
|
|
USD Partners LP
|
GAAP to Non-GAAP Reconciliations
|
For the Three Months and the Year Ended December 31, 2015 and 2014
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities
|
|
|
$
|
9,927
|
|
|
$
|
(704
|
)
|
|
|
$
|
36,204
|
|
|
$
|
(3,085
|
)
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
152
|
|
|
|
|
-
|
|
|
|
-
|
|
Depreciation and amortization
|
|
|
|
(2,866
|
)
|
|
|
(1,294
|
)
|
|
|
|
(6,110
|
)
|
|
|
(2,631
|
)
|
Gain associated with derivative instruments
|
|
|
|
1,089
|
|
|
|
963
|
|
|
|
|
5,161
|
|
|
|
1,536
|
|
Settlement of derivative contracts (1)
|
|
|
|
(1,398
|
)
|
|
|
(344
|
)
|
|
|
|
(4,283
|
)
|
|
|
(344
|
)
|
Bad debt expense
|
|
|
|
-
|
|
|
|
51
|
|
|
|
|
-
|
|
|
|
(1,424
|
)
|
Amortization of deferred financing costs
|
|
|
|
(188
|
)
|
|
|
(179
|
)
|
|
|
|
(659
|
)
|
|
|
(1,056
|
)
|
Unit based compensation expense
|
|
|
|
(293
|
)
|
|
|
(550
|
)
|
|
|
|
(2,461
|
)
|
|
|
(550
|
)
|
Deferred income taxes
|
|
|
|
23
|
|
|
|
-
|
|
|
|
|
(814
|
)
|
|
|
-
|
|
Changes in accounts receivable and other assets
|
|
|
|
(1,424
|
)
|
|
|
3,406
|
|
|
|
|
1,274
|
|
|
|
8,511
|
|
Changes in accounts payable and accrued expenses
|
|
|
|
(452
|
)
|
|
|
(116
|
)
|
|
|
|
336
|
|
|
|
2,372
|
|
Changes in deferred revenue and other liabilities
|
|
|
|
2,830
|
|
|
|
(8,952
|
)
|
|
|
|
(10,085
|
)
|
|
|
(17,497
|
)
|
Change in restricted cash
|
|
|
|
(573
|
)
|
|
|
6,490
|
|
|
|
|
(870
|
)
|
|
|
6,490
|
|
Net income (loss)
|
|
|
|
6,675
|
|
|
|
(1,077
|
)
|
|
|
|
17,693
|
|
|
|
(7,678
|
)
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
1,458
|
|
|
|
1,316
|
|
|
|
|
4,368
|
|
|
|
4,825
|
|
Depreciation and amortization
|
|
|
|
2,866
|
|
|
|
1,294
|
|
|
|
|
6,110
|
|
|
|
2,631
|
|
Provision for income taxes
|
|
|
|
1,607
|
|
|
|
101
|
|
|
|
|
5,755
|
|
|
|
186
|
|
EBITDA
|
|
|
|
12,606
|
|
|
|
1,634
|
|
|
|
|
33,926
|
|
|
|
(36
|
)
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
Gain associated with derivative instruments
|
|
|
|
(1,089
|
)
|
|
|
(963
|
)
|
|
|
|
(5,161
|
)
|
|
|
(1,536
|
)
|
Settlement of derivative contracts (1)
|
|
|
|
1,398
|
|
|
|
344
|
|
|
|
|
4,283
|
|
|
|
344
|
|
Unit based compensation expense
|
|
|
|
293
|
|
|
|
550
|
|
|
|
|
2,461
|
|
|
|
550
|
|
Foreign currency transaction loss (gain) (2)
|
|
|
|
180
|
|
|
|
1,171
|
|
|
|
|
(201
|
)
|
|
|
4,850
|
|
Unrecovered reimbursable freight costs (3)
|
|
|
|
-
|
|
|
|
141
|
|
|
|
|
-
|
|
|
|
1,616
|
|
Deferred revenue associated with minimum commitment fees (4)
|
|
|
|
(583
|
)
|
|
|
8,130
|
|
|
|
|
7,444
|
|
|
|
9,478
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
(152
|
)
|
|
|
|
-
|
|
|
|
-
|
|
Adjusted EBITDA
|
|
|
|
12,805
|
|
|
|
10,855
|
|
|
|
|
42,752
|
|
|
|
15,266
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income taxes
|
|
|
|
(1,643
|
)
|
|
|
(16
|
)
|
|
|
|
(3,995
|
)
|
|
|
(101
|
)
|
Cash paid for interest
|
|
|
|
(908
|
)
|
|
|
(1,192
|
)
|
|
|
|
(3,695
|
)
|
|
|
(3,588
|
)
|
Maintenance capital expenditures
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
Distributable cash flow
|
|
|
$
|
10,254
|
|
|
$
|
9,647
|
|
|
|
$
|
35,062
|
|
|
$
|
11,577
|
|
|
|
|
(1)
|
|
The amounts presented represent the gross proceeds received at the
time the derivative contracts were settled and do not consider the
amounts paid in connection with the initial purchase of the
derivative contracts. We purchased the derivative contracts for
$122 thousand and $403 thousand with respect to the contracts
settled in the three and twelve months ended December 31, 2015,
respectively.
|
(2)
|
|
Represents the impact of exchange rate fluctuations on U.S. dollar
denominated transactions incurred by the Partnership's Canadian
subsidiaries, primarily related to the Partnership's Hardisty
terminal operations.
|
(3)
|
|
Represents costs incurred associated with unrecovered reimbursable
freight costs related to the initial delivery of railcars in
support of the Hardisty terminal.
|
(4)
|
|
Represents deferred revenue associated with minimum monthly
commitment fees in excess of throughput utilized, which fees are
not refundable to the customers. Amounts presented are net of: (a)
the corresponding prepaid Gibson pipeline fee that will be
recognized as expense concurrently with the recognition of
revenue; (b) revenue recognized in the current period that was
previously deferred; and (c) expense recognized for previously
prepaid Gibson pipeline fees, which correspond with the revenue
recognized that was previously deferred.
|
|
|
|
|
|
|
|
|
|
|
|
USD Partners LP
|
Segment Reconciliations
|
For the Three Months and the Year Ended December 31, 2015 and 2014
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
(in thousands)
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
Terminalling services
|
|
|
$
|
13,800
|
|
|
$
|
10,741
|
|
|
|
$
|
45,347
|
|
|
$
|
15,397
|
|
Fleet services
|
|
|
|
498
|
|
|
|
331
|
|
|
|
|
2,427
|
|
|
|
1,187
|
|
Corporate activities (1)
|
|
|
|
(1,493
|
)
|
|
|
(217
|
)
|
|
|
|
(5,022
|
)
|
|
|
(1,318
|
)
|
Total Adjusted EBITDA
|
|
|
|
12,805
|
|
|
|
10,855
|
|
|
|
|
42,752
|
|
|
|
15,266
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(1,458
|
)
|
|
|
(1,316
|
)
|
|
|
|
(4,368
|
)
|
|
|
(4,825
|
)
|
Depreciation and amortization
|
|
|
|
(2,866
|
)
|
|
|
(1,294
|
)
|
|
|
|
(6,110
|
)
|
|
|
(2,631
|
)
|
Provision for income taxes
|
|
|
|
(1,607
|
)
|
|
|
(101
|
)
|
|
|
|
(5,755
|
)
|
|
|
(186
|
)
|
Gain associated with derivative instruments
|
|
|
|
1,089
|
|
|
|
963
|
|
|
|
|
5,161
|
|
|
|
1,536
|
|
Settlement of derivative contracts (2)
|
|
|
|
(1,398
|
)
|
|
|
(344
|
)
|
|
|
|
(4,283
|
)
|
|
|
(344
|
)
|
Unit based compensation expense
|
|
|
|
(293
|
)
|
|
|
(550
|
)
|
|
|
|
(2,461
|
)
|
|
|
(550
|
)
|
Foreign currency transaction gain (loss) (3)
|
|
|
|
(180
|
)
|
|
|
(1,171
|
)
|
|
|
|
201
|
|
|
|
(4,850
|
)
|
Unrecovered reimbursable freight costs (4)
|
|
|
|
-
|
|
|
|
(141
|
)
|
|
|
|
-
|
|
|
|
(1,616
|
)
|
Deferred revenue associated with minimum commitment fees (5)
|
|
|
|
583
|
|
|
|
(8,130
|
)
|
|
|
|
(7,444
|
)
|
|
|
(9,478
|
)
|
Income (loss) from continuing operations
|
|
|
$
|
6,675
|
|
|
$
|
(1,229
|
)
|
|
|
$
|
17,693
|
|
|
$
|
(7,678
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
Terminalling Services Segment
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
13,800
|
|
|
$
|
10,741
|
|
|
|
$
|
45,347
|
|
|
$
|
15,397
|
|
Interest expense
|
|
|
|
(386
|
)
|
|
|
(91
|
)
|
|
|
|
(2,026
|
)
|
|
|
(3,600
|
)
|
Depreciation and amortization
|
|
|
|
(2,866
|
)
|
|
|
(1,294
|
)
|
|
|
|
(6,110
|
)
|
|
|
(2,631
|
)
|
Provision for income taxes
|
|
|
|
(1,670
|
)
|
|
|
(18
|
)
|
|
|
|
(5,581
|
)
|
|
|
(47
|
)
|
Gain associated with derivative instruments
|
|
|
|
1,089
|
|
|
|
963
|
|
|
|
|
5,161
|
|
|
|
1,536
|
|
Settlement of derivative contracts (2)
|
|
|
|
(1,398
|
)
|
|
|
(344
|
)
|
|
|
|
(4,283
|
)
|
|
|
(344
|
)
|
Foreign currency transaction gain (loss) (3)
|
|
|
|
(129
|
)
|
|
|
(722
|
)
|
|
|
|
(166
|
)
|
|
|
(4,406
|
)
|
Deferred revenue associated with minimum commitment fees (5)
|
|
|
|
583
|
|
|
|
(8,130
|
)
|
|
|
|
(7,444
|
)
|
|
|
(9,478
|
)
|
Income (loss) from continuing operations
|
|
|
$
|
9,023
|
|
|
$
|
1,105
|
|
|
|
$
|
24,898
|
|
|
$
|
(3,573
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
Fleet Services Segment
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
498
|
|
|
$
|
331
|
|
|
|
$
|
2,427
|
|
|
$
|
1,187
|
|
Interest expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
Depreciation and amortization
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
Provision for income taxes
|
|
|
|
63
|
|
|
|
(84
|
)
|
|
|
|
(173
|
)
|
|
|
(140
|
)
|
Foreign currency transaction gain (loss) (3)
|
|
|
|
(51
|
)
|
|
|
12
|
|
|
|
|
(43
|
)
|
|
|
17
|
|
Unrecovered reimbursable freight costs (4)
|
|
|
|
-
|
|
|
|
(141
|
)
|
|
|
|
-
|
|
|
|
(1,616
|
)
|
Income (loss) from continuing operations
|
|
|
$
|
510
|
|
|
$
|
118
|
|
|
|
$
|
2,211
|
|
|
$
|
(552
|
)
|
|
|
|
(1)
|
|
Corporate activities represent corporate and financing activities
that are not allocated to the established reporting segments.
|
(2)
|
|
The amounts presented represent the gross proceeds received at the
time the derivative contracts were settled and do not consider the
amounts paid in connection with the initial purchase of the
derivative contracts. We purchased the derivative contracts for
$122 thousand and $403 thousand with respect to the contracts
settled in the three and twelve months ended December 31, 2015,
respectively.
|
(3)
|
|
Represents the impact of exchange rate fluctuations on U.S. dollar
denominated transactions incurred by the Partnership's Canadian
subsidiaries, primarily related to the Partnership's Hardisty
terminal operations.
|
(4)
|
|
Represents costs incurred associated with unrecovered reimbursable
freight costs related to the initial delivery of railcars in
support of the Hardisty terminal.
|
(5)
|
|
Represents deferred revenue associated with minimum monthly
commitment fees in excess of throughput utilized, which fees are
not refundable to the customers. Amounts presented are net of: (a)
the corresponding prepaid Gibson pipeline fee that will be
recognized as expense concurrently with the recognition of
revenue; (b) revenue recognized in the current period that was
previously deferred; and (c) expense recognized for previously
prepaid Gibson pipeline fees, which correspond with the revenue
recognized that was previously deferred.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160309006422/en/ Copyright Business Wire 2016
Source: Business Wire
(March 9, 2016 - 5:31 PM EST)
News by QuoteMedia
www.quotemedia.com
|