World Point Terminals, LP Announces Financial Results For The Quarter Ended September 30, 2016

World Point Terminals, LP (the "Partnership"), a Delaware limited partnership (NYSE: WPT), announced today its financial results for the quarter ended September 30, 2016.

"I am pleased with World Point's third quarter accomplishments," said Ken Fenton, President and Chief Operating Officer of WPT GP, LLC, the general partner of the Partnership. "In addition to the year-over-year growth in revenues, net income and EBITDA, we placed 178,000 barrels of storage capacity in service and under contract at the North Little Rock terminal and completed construction of two rail spurs at the Chickasaw terminal that will improve logistical efficiencies. Both projects provided an immediate boost to revenues and are expected to provide long-term revenue streams to the Partnership."

Financial Summary

A summary of the financial results for the three months ended September 30, 2016 compared to the three months ended September 30, 2015, includes:
  • Revenues for the three months ended September 30, 2016 increased $2.7 million, or 12% compared to the three months ended September 30, 2015.
    • Base storage services fees increased $1.6 million, or 9%, primarily as a result of the addition of new customer contracts at the Blakeley Island, Jacksonville and Galveston terminals, increased terminaling activity at the Glenmont terminal and the addition of the Salisbury terminal in the fourth quarter of 2015, partially offset by reduced base storage fees at the St. Louis terminal.
    • Excess storage services fees for the three months ended September 30, 2016 increased $0.2 million, or 135%, primarily as a result of increased terminaling activity at the Jacksonville terminal.
    • Ancillary and additive services increased $0.9 million, or 28%, primarily as a result of increased railcar loading activity at the Chickasaw terminal, increased heating activity at the Baton Rouge terminal, increased ethanol blending activity at the Jacksonville terminal and profit-sharing revenue earned at the St. Louis terminal during 2016.
  • Operating expenses for the three months ended September 30, 2016 increased $1.2 million, or 16%, compared to the three months ended September 30, 2015. This increase was primarily attributable to a (i) $0.7 million increase in other expense including environmental compliance costs of $0.5 million incurred at the Newark terminal that are expected to be reimbursed by insurance, less a deductible, (ii) $0.6 million increase in repairs and maintenance primarily due to periodic tank cleaning and repairs completed in the third quarter of 2016, and (iii) $0.1 million increase in utilities, offset by a (i) $0.1 million decrease in insurance expense and (ii) $0.1 million decrease in property taxes.
  • Selling, general and administrative expenses, including reimbursements to affiliates, for the three months ended September 30, 2016 decreased 2%, compared to the three months ended September 30, 2015 primarily as a result of $0.1 million in directors' fees that were incurred later in the year in 2015 than in 2016, offset by a $0.1 million increase in personnel costs and professional fees.
  • Depreciation and amortization expense for the three months ended September 30, 2016 decreased $0.5 million, or 8%, compared to the three months ended September 30, 2015. This decrease is primarily due to terminal assets that became fully depreciated in December of 2015 and January of 2016 at the Baltimore and Newark terminals.
  • Interest expense consists primarily of commitment fees paid to maintain the Credit Facility and amortization of associated costs over the term of the facility. Interest expense remained unchanged for the three months ended September 30, 2016 compared to the three months ended September 30, 2015.
  • Interest and dividend income for the three months ended September 30, 2016 increased slightly compared to the three months ended September 30, 2015. This increase was attributable to higher amounts of short-term investments held during the third quarter of 2016.
  • Gain on investments for the three months ended September 30, 2016 decreased $0.1 million, or 84% compared to the three months ended September 30, 2015. The decrease was primarily attributable to a small mark-to-market loss on investments recorded in the third quarter of 2016 as opposed to a $0.1 million gain during the third quarter of 2015.
  • Income tax expense for the three months ended September 30, 2016 decreased $0.1 million, compared with the three months ended September 30, 2015.
  • Net income for the three months ended September 30, 2016 increased $1.8 million, or 26%, compared to the three months ended September 30, 2015. Net income was $0.25 per unit for the three months ended September 30, 2016.
  • Average daily terminal throughput for the three months ended September 30, 2016 increased 17 mbbls, or 10%, compared to the three months ended September 30, 2015 primarily as a result of increased throughput at the Jacksonville and Galveston terminals.
  • Adjusted EBITDA, as defined by the Partnership, increased $1.3 million for the three months ended September 30, 2016 compared with the three months ended September 30, 2015.

A summary of the financial results for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015, includes:
  • Revenues for the nine months ended September 30, 2016 increased $2.8 million, or 4%, compared to the nine months ended September 30, 2015.
    • Base storage services fees increased $2.6 million or 4%, primarily as a result of additional tanks at the Blakeley Island terminal that were placed under contract during the first half of 2016, new customers at the Galveston terminal, increased terminaling activity at the Glenmont terminal, and the addition of the Salisbury terminal in the fourth quarter of 2015, partially offset by reduced base storage fees at the St. Louis terminal.
    • Excess storage services fees decreased $0.1 million, or 10% for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015.
    • Ancillary and additive services increased $0.3 million, or 3%, compared to the nine months ended September 30, 2015, primarily as a result of increased railcar loading activity at the Chickasaw terminal, increased heating activity at the Baton Rouge terminal, increased ethanol blending activity at the Jacksonville terminal and profit-sharing revenue earned at the St. Louis terminal, partially offset by reduced polymer processing activity at the Granite City terminal caused by a disruption in the Keystone Pipeline, reduced barge loading fees at the Newark terminal and reduced heating fees at the Pine Bluff terminal during 2016.
  • Operating expenses for the nine months ended September 30, 2016 increased $1.0 million, or 4%, compared to the nine months ended September 30, 2015. This increase was primarily attributable to a (i) $0.9 million increase in environmental compliance costs incurred at the Newark terminal that are expected to be reimbursed by insurance, less a deductible, (ii) $0.2 million increase in repairs and maintenance primarily due to periodic tank cleaning and repairs, and (iii) $0.2 million increase in utility costs, offset by a $0.3 million decrease in insurance expense.
  • Selling, general and administrative expenses for the nine months ended September 30, 2016 increased $0.2 million, or 4%, compared to the nine months ended September 30, 2015 as a result of a (i) $0.2 million increase in personnel and office expenses, (ii) $0.1 million increase in audit and tax preparation expenses and (iii) $0.1 million increase in public company expenses, offset by a $0.2 million decrease in insurance and professional fees.
  • Depreciation and amortization expense for the nine months ended September 30, 2016 decreased $1.1 million, or 6%, compared to the nine months ended September 30, 2015. This decrease is primarily due to terminal assets that became fully depreciated in December of 2015 and January of 2016 at the Baltimore and Newark terminals.
  • Interest expense consists primarily of commitment fees paid to maintain the Credit Facility and amortization of associated costs over the term of the facility. Interest expense increased slightly for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015.
  • Interest and dividend income for the nine months ended September 30, 2016 decreased $0.1 million compared to the nine months ended September 30, 2015. This decrease was attributable to lower amounts of short-term investments held during the first half of 2016.
  • Gain on investments for the nine months ended September 30, 2016 increased $0.1 million compared to the nine months ended September 30, 2015. The increase was primarily attributable to a mark-to-market gain on investments recorded at September 30, 2016 as opposed to a loss at September 30, 2015.
  • Income tax expense for the nine months ended September 30, 2016 increased slightly compared with the nine months ended September 30, 2015.
  • Net income for the nine months ended September 30, 2016 increased $2.7 million, or 11%, compared to the nine months ended September 30, 2015. Net income was $0.80 per unit for the nine months ended September 30, 2016.
  • Average daily terminal throughput for the nine months ended September 30, 2016 decreased 20 mbbls or, 11%, compared to the nine months ended September 30, 2015 primarily as a result of decreased throughput at the Galveston, Newark and Weirton terminals.
  • Adjusted EBITDA, as defined by the Partnership, increased $1.6 million for the nine months ended September 30, 2016 compared with the nine months ended September 30, 2015.

Attachment A to this communication contains selected financial and operational data from the Partnership's Condensed Consolidated Statements of Income for the three and nine month periods ended September 30, 2016 and September 30, 2015.

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