TransMontaigne Partners L.P. (NYSE:TLP) today announced its financial results for the quarter ended September 30, 2012.
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.
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,|
|Terminaling services fees, net:|
|Total firm commitments||29,645||28,659||86,892||85,456|
|Terminaling services fees, net:|
|Pipeline transportation fees||1,268||1,069||3,994||3,242|
|Management fees and reimbursed costs||1,531||1,126||4,274||2,709|
|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|