- 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.
|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|
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.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.
CONFERENCE CALLTransMontaigne 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
|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 threemonths ended September 30, 2012, which was filed on November 6, 2012 with the Securities and Exchange Commission (inthousands, except per unit amounts):|
|Three Months Ended|
|September 30, 2012||September 30, 2011|
|Income Statement Data|
|Direct operating costs and expenses||(16,170)||(16,490)|
|Direct general and administrative expenses||(1,204)||(1,060)|
|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|
|Three months ended||Year ending December 31, 2012|
|March 31, 2012||June 30, 2012||September 30, 2012||December 31, 2012|
|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|
|Other expenses, net||(806)||(872)||(847)||—||(2,525)|
|Three months ended||Year ending December 31, 2011|
|March 31, 2011||June 30, 2011||September 30, 2011||December 31, 2011|
|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|
|Other expenses, net||(978)||(689)||(959)||(974)||(3,600)|
|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|
|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|
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.