PBF Logistics Increases Quarterly Distribution to $0.5150 per Unit and Announces Second Quarter 2019 Earnings Results
PARSIPPANY, N.J., Aug. 1, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") today announced second quarter 2019 net income attributable to the limited partners of $22.2 million, or $0.37 per common unit. During the quarter, the Partnership generated cash from operations of approximately $17.7 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $42.5 million, Adjusted EBITDA of $48.3 million and distributable cash flow of $34.1 million. Included in reported results for the second quarter are $5.8 million, or $0.10 per common unit, of expenses related to the Torrance Valley Pipeline Company acquisition, non-cash unit-based compensation and environmental remediation costs associated with the East Coast Terminals.
"During the second quarter, PBF Logistics' assets operated well and we are currently seeing increased demand at several of our East Coast terminaling and storage facilities. We successfully delivered incremental growth through the completion of the TVPC acquisition and remain committed to the Partnership's continued development by executing our three-pronged growth strategy," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "Additionally, with the anticipated early start to our processing and storage agreement with Maersk, we are seeing the initial moves by market participants in preparation for the IMO fuel specification implementation on January 1, 2020."
As of June 30, 2019, the Partnership had approximately $264.9 million of liquidity, including approximately $20.0 million in cash and cash equivalents, and access to approximately $244.9 million under its revolving credit facility.
Agreement for production and storage of 0.5% sulphur fuel on the U.S. East Coast
On February 14, 2019, PBF Logistics announced an agreement with A.P. Moller - Maersk ("Maersk") to source and PBFX to process crude oil at CPI Operations LLC, a PBF Logistics LP terminal facility ("East Coast Storage assets") in New Jersey, United States. The processing and storage arrangement is expected to commence on October 1, 2019, approximately two months earlier than originally anticipated.
The agreement enables Maersk Oil Trading to supply IMO 2020-compliant 0.5% marine fuel to its customers on the US East Coast. Annual production will be around 1.25 million metric tonnes (mt), the equivalent of approximately 10% of A.P. Moller - Maersk's annual fuel demand.
About the TVPC Transaction
On May 31, 2019, PBF Logistics completed the previously announced transaction to acquire the remaining fifty percent interest in Torrance Valley Pipeline Company LLC ("TVPC") from an affiliate of PBF Energy Inc. (NYSE:PBF) for total consideration of approximately $200.0 million, an eight times acquisition multiple.
The acquisition of TVPC by the Partnership immediately doubles its position in one of its core assets and is immediately accretive to distributable cash flow.
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 $0.5150 per common unit. The distribution is payable on August 30, 2019, to unitholders of record at the close of business on August 15, 2019.
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
PBFX Reconciliation of Amounts under U.S. generally accepted accounting principles ("GAAP") to annualized run-rate EBITDA (unaudited, in millions)
Reconciliation of fifty percent TVPC acquired interest, inclusive of the amendment to the M70 services agreement, estimated annualized run-rate Net Income to annualized run-rate EBITDA:
TVPC
Acquisition
Annualized run-rate net income $
15.5
Add: Depreciation and
amortization expense 5.5
Add: Interest expense, net and
other financing costs 4.0
Annualized run-rate EBITDA $
25.0
Due to the forward-looking nature of annualized run-rate EBITDA, information to reconcile annualized run-rate EBITDA to annualized run-rate cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
Due to the forward-looking nature of forecasted and long-term, consolidated run-rate EBITDA and distributable cash flow, information to reconcile long-term, consolidated run-rate EBITDA, distributable cash flow and coverage ratios to long-term, consolidated run-rate net income and cash flow from operating activities is not available as management is unable to project financing terms and working capital changes for future periods at this time.
The Partnership defines EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions. The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. The Partnership defines distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are non-GAAP supplemental financial measures that management and external users of the Partnership's condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
-- the Partnership's 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 the Partnership's assets to generate sufficient cash flow
to make distributions to the Partnership's unitholders;
-- the Partnership's ability to incur and service debt and fund capital
expenditures; and
-- the viability of acquisitions and other capital expenditure projects and
the economic returns on various investment opportunities.
The Partnership believes that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing the Partnership's financial condition and results of operations and assists in evaluating the Partnership's ongoing operating performance for current and comparative periods. The Partnership believes 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 and provides investors with another perspective of the operating performance of the Partnership's assets and the cash the Partnership's business is generating. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA, EBITDA attributable to PBFX, Adjusted 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. Additionally, because EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow may be defined differently by other companies in the Partnership's industry, the Partnership's definitions of such measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Conference Call Information
The Partnership will host a conference call and webcast regarding second quarter results and other business matters on Thursday, August 1, 2019, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 831-8713 or (203) 518-9822, conference ID: PBFXQ219. The audio replay will be available two hours after the end of the call through August 15, 2019, by dialing (800) 723-5782 or (402) 220-2663.
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, the possibility that the Partnership may not consummate any pending acquisitions, the Partnership's plans for financing any pending acquisitions, 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 its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. 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 reconciliations of net income and net cash provided by operating activities to EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow (all as defined below) of PBFX for the three and six months ended June 30, 2019 and 2018. The financial information presented contains the financial results of PBFX and the Development Assets (as defined below) prior to the Development Assets Acquisition (as defined below) on July 31, 2018.
On April 24, 2019, we entered into a Contribution Agreement with PBF Energy Company LLC ("PBF LLC"), pursuant to which PBF LLC contributed to us all of the issued and outstanding limited liability company interests of TVP Holding Company LLC ("TVP Holding"), which held the remaining 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), for total consideration of $200.0 million (the "TVPC Acquisition"). Subsequent to the closing of the TVPC Acquisition on May 31, 2019, we own 100% of the equity interest in TVPC, and we no longer record a noncontrolling interest related to our ownership of TVPC.
On February 28, 2019, we closed on an Equity Restructuring Agreement with PBF LLC and PBF Logistics GP, our general partner, pursuant to which PBFX's incentive distribution rights ("IDRs") held by PBF LLC were canceled and converted into 10,000,000 newly issued PBFX common units (the "IDR Restructuring"). Subsequent to the closing of the IDR Restructuring, no distributions were made to PBF LLC with respect to the IDRs, and the newly issued PBFX common units are entitled to normal distributions.
On October 1, 2018, we acquired Crown Point International LLC's wholly-owned subsidiary, CPI Operations LLC (the "East Coast Storage Assets Acquisition"), whose assets include a storage facility with approximately four million barrels of multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and certain other idled assets located on the Delaware River near Paulsboro, New Jersey (collectively, the "East Coast Storage Assets"). Additionally, the East Coast Storage Assets Acquisition includes an earn-out provision related to an existing commercial agreement with a third party, based on the results of restarting certain of the acquired idled assets, which are expected to be restarted in the fourth quarter of 2019.
On July 31, 2018, we acquired from PBF LLC, a subsidiary of PBF Energy Inc., all of the issued and outstanding limited liability company interests of: Toledo Rail Logistics Company LLC, whose assets consist of a loading and unloading rail facility located at PBF Holding Company LLC's ("PBF Holding") Toledo Refinery (the "Toledo Rail Products Facility"); Chalmette Logistics Company LLC, whose assets consist of a truck loading rack facility (the "Chalmette Truck Rack") and a rail yard facility (the "Chalmette Rosin Yard"), both of which are located at PBF Holding's Chalmette Refinery; Paulsboro Terminaling Company LLC, whose assets consist of a lube oil terminal facility located at PBF Holding's Paulsboro Refinery (the "Paulsboro Lube Oil Terminal"); and DCR Storage and Loading Company LLC, whose assets consist of an ethanol storage facility located at PBF Holding's Delaware City Refinery (the "Delaware Ethanol Storage Facility" and collectively with the Toledo Rail Products Facility, the Chalmette Truck Rack, the Chalmette Rosin Yard, and the Paulsboro Lube Oil Terminal, the "Development Assets") (the "Development Assets Acquisition"). In connection with the Development Assets Acquisition, we entered into various commercial agreements with PBF Holding and assumed an existing commercial agreement with a third party.
On April 16, 2018, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), completed the purchase of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial Pipeline Company and Plantation Pipe Line Company pipeline systems and truck loading facilities (the "Knoxville Terminals") from Cummins Terminals, Inc. (the "Knoxville Terminals Purchase").
The Development Assets Acquisition was a transfer between entities under common control. Accordingly, PBFX's financial information contained herein has been retrospectively adjusted to include the historical results of the Development Assets as if they were owned by the Partnership for all periods presented. The results of the Development Assets are included in the Transportation and Terminaling segment.
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 net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX 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 calculated by dividing distributable cash flow by our total distribution declared. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed 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 economic returns on various investment opportunities.
We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. 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 and it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted 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. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except unit and per unit data)
Three Months Ended Six Months Ended
June 30, June 30,
2019 2018 2019 2018
---
Revenue (a):
Affiliate $
74,656
$ $
63,785 $
145,988 $
124,649
Third-party 8,094 4,314 15,607 8,190
Total revenue 82,750 68,099 161,595 132,839
Costs and expenses:
Operating and maintenance expenses (a) 28,553 20,724 58,469 40,604
General and administrative expenses 7,580 6,488 13,590 10,779
Depreciation and amortization 8,854 7,091 17,575 13,734
Total costs and expenses 44,987 34,303 89,634 65,117
---
Income from operations 37,763 33,796 71,961 67,722
Other expense:
Interest expense, net (11,216) (10,029) (22,129) (19,614)
Amortization of loan fees and debt premium (446) (396) (895) (759)
Accretion on discounted liabilities (773) (1,533)
Net income 25,328 23,371 47,404 47,349
Less: Net loss attributable to Predecessor (1,084) (2,363)
Less: Net income attributable to noncontrolling interest (g) 3,162 4,363 7,881 8,385
Net income attributable to the partners 22,166 20,092 39,523 41,327
Less: Net income attributable to the IDR holder (h) 3,415 6,370
Net income attributable to PBF Logistics LP unitholders $
22,166 $
16,677 $
39,523 $
34,957
===
Net income per limited partner unit (i):
Common units - basic $
0.37 $
0.39 $
0.72 $
0.83
Common units - diluted 0.37 0.39 0.72 0.83
Weighted-average limited partner units outstanding (i):
Common units - basic 60,279,287 42,231,119 54,748,755 42,176,202
Common units - diluted 60,364,347 42,294,616 54,776,257 42,190,136
Cash distribution declared per unit (e) $
0.5150 $
0.4950 $
1.0250 $
0.9850
See Footnotes to Earnings Release Tables
PBF LOGISTICS LP
EARNINGS RELEASE TABLES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
(Unaudited, in thousands)
Three Months Ended June 30, 2018
PBF Logistics Development Consolidated
Assets* Results
Revenue:
Affiliate $
63,785
$ $
63,785
Third-party 3,613 701 4,314
Total revenue 67,398 701 68,099
Costs and expenses:
Operating and maintenance expenses 19,111 1,613 20,724
General and administrative expenses 6,488 6,488
Depreciation and amortization 6,919 172 7,091
Total costs and expenses 32,518 1,785 34,303
Income (loss) from operations 34,880 (1,084) 33,796
Other expense:
Interest expense, net (10,029) (10,029)
Amortization of loan fees and debt premium (396) (396)
Net income (loss) 24,455 (1,084) 23,371
Less: Net loss attributable to Predecessor (1,084) (1,084)
Less: Net income attributable to noncontrolling interest (g) 4,363 4,363
Net income attributable to the partners 20,092 20,092
Less: Net income attributable to the IDR holder 3,415 3,415
Net income attributable to PBF Logistics LP unitholders $
16,677
$ $
16,677
See Footnotes to Earnings Release Tables
*Reflects the results of the Development Assets prior to our acquisition on July 31, 2018.
PBF LOGISTICS LP
EARNINGS RELEASE TABLES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
(Unaudited, in thousands)
Six Months Ended June 30, 2018
PBF Logistics Development Consolidated
Assets* Results
Revenue:
Affiliate $
124,649
$ $
124,649
Third-party 6,788 1,402 8,190
Total revenue 131,437 1,402 132,839
Costs and expenses:
Operating and maintenance expenses 37,159 3,445 40,604
General and administrative expenses 10,779 10,779
Depreciation and amortization 13,414 320 13,734
Total costs and expenses 61,352 3,765 65,117
Income (loss) from operations 70,085 (2,363) 67,722
Other expense:
Interest expense, net (19,614) (19,614)
Amortization of loan fees and debt premium (759) (759)
Net income (loss) 49,712 (2,363) 47,349
Less: Net loss attributable to Predecessor (2,363) (2,363)
Less: Net income attributable to noncontrolling interest (g) 8,385 8,385
Net income attributable to the partners 41,327 41,327
Less: Net income attributable to the IDR holder 6,370 6,370
Net income attributable to PBF Logistics LP unitholders $
34,957
$ $
34,957
See Footnotes to Earnings Release Tables
*Reflects the results of the Development Assets prior to our acquisition on July 31, 2018.
PBF LOGISTICS LP
EARNINGS RELEASE TABLES
KEY OPERATING AND FINANCIAL INFORMATION
(Unaudited, amounts in thousands except as indicated)
Three Months Ended Six Months Ended
June 30, June 30,
2019 2018 2019 2018
Transportation and Terminaling Segment
Terminals
Total throughput (barrels per day ("bpd")) (b)(d) 275,076 268,430 262,772 255,973
Lease tank capacity (average lease capacity barrels per 2,185,882 1,589,784 2,300,813 1,869,693
month)
Pipelines
Total throughput (bpd) (b)(d) 161,809 166,900 154,520 159,868
Lease tank capacity (average lease capacity barrels per 1,500,714 1,574,740 1,338,769 1,555,930
month)
Storage Segment
Storage capacity reserved (average shell capacity 8,053,983 4,412,673 7,993,338 4,445,714
barrels per month)
Cash Flow Information:
Net cash provided by (used in):
Operating activities $
17,677 $
22,402 $
55,886 $
65,327
Investing activities (3,932) (61,718) (15,152) (65,671)
Financing activities (10,191) 36,988 (40,642) 361
---
Net change in cash $
3,554 $
(2,328) $
92 $
17
Other Financial Information:
EBITDA attributable to PBFX (c) $
42,534 $
36,070 $
79,356 $
72,387
Adjusted EBITDA (c) $
48,336 $
39,402 $
91,293 $
77,036
Distributable cash flow (c) $
34,123 $
28,100 $
59,536 $
54,346
Quarterly distribution declared per unit (e) $
0.5150 $
0.4950 $
1.0250 $
0.9850
Distributions (e):
Common units $
32,398 $
22,800 $
64,481 $
43,770
IDR holder - PBF LLC (h) - 3,415 6,370
---
Total distributions $
32,398 $
26,215 $
64,481 $
50,140
===
Coverage ratio (c) 1.05x 1.07x 0.92x 1.08x
Capital expenditures, including the Knoxville Terminals $
3,932 $
61,718 $
15,152 $
65,671
Purchase
See Footnotes to Earnings Release Tables
PBF LOGISTICS LP
EARNINGS RELEASE TABLES
KEY OPERATING AND FINANCIAL INFORMATION (continued)
(Unaudited, in thousands)
June 30, December 31,
Balance Sheet Information: 2019 2018
Cash and cash equivalents
(f) $
20,000 $
19,908
Property, plant and
equipment, net 855,958 862,117
Total assets 959,573 956,353
Total debt (f) 769,219 673,324
Total liabilities 852,579 763,163
Partners' equity 106,994 23,718
Noncontrolling interest
(g) - 169,472
Total liabilities and
equity 959,573 956,353
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 Six Months Ended
June 30, June 30,
2019 2018 2019 2018
---
Reconciliation of net income to EBITDA and
distributable cash flow (c):
Net Income $
25,328 $
23,371 $
47,404 $
47,349
Interest expense, net 11,216 10,029 22,129 19,614
Amortization of loan fees and debt premium 446 396 895 759
Accretion on discounted liabilities 773 1,533 -
Depreciation and amortization 8,854 7,091 17,575 13,734
EBITDA 46,617 40,887 89,536 81,456
Less: Predecessor EBITDA (912) (2,043)
Less: Noncontrolling interest EBITDA (g) 4,083 5,729 10,180 11,112
EBITDA attributable to PBFX 42,534 36,070 79,356 72,387
Non-cash unit-based compensation expense 3,387 2,663 4,351 3,497
Cash interest (11,290) (10,049) (22,426) (19,629)
Maintenance capital expenditures attributable to PBFX (508) (584) (1,745) (1,909)
Distributable cash flow $
34,123 $
28,100 $
59,536 $
54,346
Reconciliation of net cash provided by operating activities
to EBITDA and distributable cash flow (c):
Net cash provided by operating activities $
17,677 $
22,402 $
55,886 $
65,327
Change in operating assets and liabilities 21,111 11,119 15,872 12
Interest expense, net 11,216 10,029 22,129 19,614
Non-cash unit-based compensation expense (3,387) (2,663) (4,351) (3,497)
EBITDA 46,617 40,887 89,536 81,456
Less: Predecessor EBITDA (912) (2,043)
Less: Noncontrolling interest EBITDA (g) 4,083 5,729 10,180 11,112
EBITDA attributable to PBFX 42,534 36,070 79,356 72,387
Non-cash unit-based compensation expense 3,387 2,663 4,351 3,497
Cash interest (11,290) (10,049) (22,426) (19,629)
Maintenance capital expenditures attributable to PBFX (508) (584) (1,745) (1,909)
Distributable cash flow $
34,123 $
28,100 $
59,536 $
54,346
See Footnotes to Earnings Release Tables
PBF LOGISTICS LP
EARNINGS RELEASE TABLES
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP
TO ADJUSTED EBITDA
(Unaudited, in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2019 2018 2019 2018
---
Reconciliation of net income to EBITDA and Adjusted
EBITDA (c):
Net income $
25,328 $
23,371 $
47,404 $
47,349
Interest expense, net 11,216 10,029 22,129 19,614
Amortization of loan fees and debt premium 446 396 895 759
Accretion on discounted liabilities 773 1,533
Depreciation and amortization 8,854 7,091 17,575 13,734
---
EBITDA 46,617 40,887 89,536 81,456
Less: Predecessor EBITDA - (912) (2,043)
Less: Noncontrolling interest EBITDA (g) 4,083 5,729 10,180 11,112
---
EBITDA attributable to PBFX 42,534 36,070 79,356 72,387
Acquisition and transaction costs 955 669 3,108 1,152
Non-cash unit-based compensation expense 3,387 2,663 4,351 3,497
East Coast Terminals environmental remediation costs 1,460 3,596
PNGPC tariff true-up adjustments - 882
---
Adjusted EBITDA $
48,336 $
39,402 $
91,293 $
77,036
===
See Footnotes to Earnings Release Tables
PBF LOGISTICS LP
EARNINGS RELEASE TABLES
SEGMENT FINANCIAL INFORMATION
(Unaudited, in thousands)
Three Months Ended June 30, 2019
Transportation Storage Corporate Consolidated
and Total
Terminaling
Total revenue (a) $
69,656 $
13,094
$ $
82,750
Depreciation and amortization 6,879 1,975 8,854
Income (loss) from operations 40,529 4,814 (7,580) 37,763
Interest expense, net, amortization of loan 12,435 12,435
fees and debt premium and accretion on
discounted liabilities
Capital expenditures 1,689 2,243 3,932
Three Months Ended June 30, 2018
Transportation Storage Corporate Consolidated
and Total
Terminaling
Total revenue (a) $
61,133 $
6,966
$ $
68,099
Depreciation and amortization 6,166 925 7,091
Income (loss) from operations 36,234 4,050 (6,488) 33,796
Interest expense, net and amortization of loan fees and debt premium 10,425 10,425
Capital expenditures, including the Knoxville Terminals Purchase 61,716 2 61,718
Six Months Ended June 30, 2019
Transportation Storage Corporate Consolidated
and Total
Terminaling
Total revenue (a) $
135,615 $
25,980
$ $
161,595
Depreciation and amortization 13,780 3,795 17,575
Income (loss) from operations 77,080 8,471 (13,590) 71,961
Interest expense, net, amortization of loan fees and debt premium and accretion on
discounted liabilities 24,557 24,557
Capital expenditures 12,233 2,919 15,152
Six Months Ended June 30, 2018
Transportation Storage Corporate Consolidated
and Total
Terminaling
Total revenue (a) $
118,804 $
14,035
$ $
132,839
Depreciation and amortization 11,884 1,850 13,734
Income (loss) from operations 70,460 8,041 (10,779) 67,722
Interest expense, net and amortization of loan fees and debt premium 20,373 20,373
Capital expenditures, including the Knoxville Terminals Purchase 65,583 88 65,671
See Footnotes to Earnings Release Tables
PBF LOGISTICS LP
EARNINGS RELEASE TABLES
SEGMENT FINANCIAL INFORMATION (continued)
(Unaudited, in thousands)
Balance at June 30, 2019
Transportation Storage Corporate Consolidated
Total
and
Terminaling
Total assets $
730,250 $
220,030 $
9,293 $
959,573
Balance at December 31, 2018
Transportation Storage Corporate Consolidated
and Total
Terminaling
Total assets $
731,505 $
219,326 $
5,522 $
956,353
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 5. Our results of operations may
not be comparable to
the historical results of operations for the reasons described below:
.
Revenue -On May 1, 2019, we closed the TVPC Acquisition in which we acquired the remaining 50% equity
interest in
TVPC. As such, we now own 100% of the equity interest in TVPC and no longer record a noncontrolling
interest related to
our ownership of TVPC. .
On October 1, 2018, we closed the East Coast Storage Assets Acquisition, which was accounted for as a
business
combination. As such, there was no revenue associated with the East Coast Storage Assets prior to our
acquisition.
On July 31, 2018, we closed the Development Assets Acquisition with PBF LLC. Commercial agreements with
PBF
Holding for the Development Assets commenced subsequent to our acquisition, with the exception of an
existing
commercial agreement associated with the Paulsboro Lube Oil Terminal.
.
On April 16, 2018, our wholly-owned subsidiary, PLPT, closed the Knoxville Terminals Purchase, which
was accounted for
as a business combination. As such, there was no revenue associated with the Knoxville Terminals prior
to our acquisition.
Operating and maintenance expenses -As a result of our acquisitions and the completion of certain
organic growth projects,
our operating expenses are not comparative to prior periods due to expenses associated with these
assets.
(b) Calculated as the sum of the average throughput per day for each asset group for the period presented.
(c) See "Non-GAAP Financial Measures" on page 6 for definitions of EBITDA, EBITDA attributable to PBFX,
Adjusted
EBITDA, distributable cash flow and coverage ratio.
(d) Operating information reflects activity subsequent to our acquisitions, the execution of the commercial
agreements with PBF Holding and the completion of certain organic growth projects.
(e) On August 1, 2019, we announced a quarterly cash distribution of $0.5150 per limited partner unit based
on the results of the
second quarter of 2019. The distribution is payable on August 30, 2019 to PBFX unitholders of record at
the close of
business on August 15, 2019. The total distribution amounts include the expected distributions to be
made related to second
quarter earnings.
(f) 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 from total debt. We believe this measurement is also useful to
investors since 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. Our net
debt as of June 30, 2019
and December 31, 2018 was $749,219 and $653,416, respectively.
(g) Prior to the TVPC Acquisition, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"),
held a 50%
controlling interest in TVPC, with the other 50% equity interest in TVPC owned by TVP Holding, a
subsidiary of PBF
Holding. PBFX Op Co was the sole managing member of TVPC. We, through our ownership of PBFX Op Co,
consolidated
the financial results of TVPC and recorded a noncontrolling interest for the economic interest in TVPC
held by TVP
Holding. Noncontrolling interest on the condensed consolidated statements of operations included the
portion of net income
or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on
the condensed
consolidated balance sheets included the portion of net assets of TVPC attributable to TVP Holding.
.
Subsequent to the TVPC Acquisition, we own 100% of the equity interest in TVPC and no longer record a
noncontrolling
interest related to TVPC.
(h) Subsequent to the closing of the IDR Restructuring, the IDRs were canceled and exchanged for 10,000,000
newly issued
PBFX common units. No distributions were made to PBF LLC with respect to the IDRs for the three or six
months ended
June 30, 2019, and the newly issued PBFX common units are entitled to normal distributions.
(i) We base our calculation of net income per limited partner unit on the weighted-average number of
limited partner units
outstanding during the period and the amount of available cash that has been or will be distributed to
the limited partners and
IDR holders (prior to the IDR Restructuring) for that reporting period.
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SOURCE PBF Logistics LP
