Segment Reporting

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

Note 10. Segment Reporting

The Predecessor manages the business in two reportable segments: Terminalling services segment and Fleet services segment. The Terminalling services segment operates by terminalling and transloading crude oil and biofuels under multi-year, fixed-fee contracts. Certain agreements contain “take-or-pay” provisions whereby the Predecessor is entitled to a minimum commitment fee. The Fleet services segment provides customers with railcar-specific fleet services associated with the transportation of crude oil. We typically charge our customers, including affiliates of USD, monthly fees per railcar that include a component for railcar use (in the case of our directly-leased railcar fleet) and a component for fleet services. The master fleet services agreements for our directly-leased railcars contain provisions for the customers’ use on a take-or-pay basis for periods ranging from five to nine years.

The Predecessor’s reportable segments offer different services and are managed accordingly. The Predecessor’s chief operating decision maker (the “CODM”) regularly reviews financial information about both segments in deciding how to allocate resources and evaluate performance. The CODM assesses segment performance based on income (loss) from continuing operations before interest expense, net, foreign currency transaction gains and losses, gains and losses associated with derivative contracts, income and withholding taxes, special charges, depreciation, and amortization (“Adjusted EBITDA”).

The following tables summarize the Predecessor’s reportable segment data for continuing operations, in thousands:

	For the Three Months Ended September 30, 2014
	Terminalling services			Fleet services			Total
Revenues
Third party	$	8,450		$	2,649		$	11,099
Related party		1,314			573			1,887
Operating costs (excluding depreciation)		6,173			3,707			9,880
Depreciation		1,083			—			1,083
Interest expense, net		1,525			—			1,525
Other expense, net		1,621			(5	)		1,616
Provision for income taxes		7			54			61
Loss from continuing operations	$	(645	)	$	(534	)	$	(1,179	)
	For the Nine Months Ended September 30, 2014
	Terminalling services			Fleet services			Total
Revenues
Third party	$	11,898		$	9,185		$	21,083
Related party		1,314			1,510			2,824
Operating costs (excluding depreciation)		11,005			11,314			22,319
Depreciation		1,337			—			1,337
Interest expense, net		3,509			—			3,509
Other expense, net		3,111			(5	)		3,106
Provision for income taxes		29			56			85
Loss from continuing operations	$	(5,779	)	$	(670	)	$	(6,449	)
	For the Three Months Ended September 30, 2013
	Terminalling services			Fleet services			Total
Revenues
Third party	$	1,647		$	3,016		$	4,663
Related party		—			470			470
Operating costs (excluding depreciation)		1,535			3,358			4,893
Depreciation		125			—			125
Interest expense		880			—			880
Provision for income taxes		5			—			5
Income (loss) from continuing operations	$	(898	)	$	128		$	(770	)

	For the Nine Months Ended September 30, 2013
	Terminalling services			Fleet services		Total
Revenues
Third party	$	5,338		$	12,429	$	17,767
Related party		—			746		746
Operating costs (excluding depreciation)		4,385			12,810		17,195
Depreciation		376			—		376
Interest expense		2,525			—		2,525
Provision for income taxes		22			—		22
Income (loss) from continuing operations	$	(1,970	)	$	365	$	(1,605	)

The following table provides a reconciliation of Adjusted EBITDA to loss from continuing operations, in thousands:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Adjusted EBITDA
Terminalling services Adjusted EBITDA	$	4,939		$	112		$	3,555		$	953
Fleet services Adjusted EBITDA		380			128			856			365
Depreciation		(1,083	)		(125	)		(1,337	)		(376	)
Unrecovered reimbursable freight costs(1)		(865	)		—			(1,475	)		—
Deferred revenue related to minimum commitment fees(2)		(1,348	)		—			(1,348	)		—
Interest expense, net		(1,525	)		(880	)		(3,509	)		(2,525	)
Gain associated with derivative instruments		1,375			—			573			—
Foreign currency transaction loss		(2,991	)		—			(3,679	)		—
Provision for income taxes		(61	)		(5	)		(85	)		(22	)
Loss from continuing operations	$	(1,179	)	$	(770	)	$	(6,449	)	$	(1,605	)

(1) Provision for bad debts associated with unrecovered reimbursable freight costs related to the initial delivery of railcars in support of the Hardisty Terminal.

(2) Represents deferred revenue associated with minimum commitment fees in excess of throughput utilized, which fees are not refundable to the customers. See Note 6—Deferred Revenue.

The following tables summarize the Predecessor’s total assets by segment from continuing operations, in thousands:

	As of
	September 30, 2014		December 31, 2013
Terminalling services	$	121,033	$	68,995
Fleet services		11,935		8,197
Total assets	$	132,968	$	77,192