Delaware | 001-36674 | 30-0831007 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit Number | Description | |
99.1 | Press release of USD Partners LP dated March 25, 2015. |
USD Partners LP | ||||
By: | USD Partners GP LLC, | |||
its general partner | ||||
Dated: March 25, 2015 | By: | /s/ Adam Altsuler | ||
Name: | Adam Altsuler | |||
Title: | Vice President and Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release of USD Partners LP dated March 25, 2015. |
• | On October 15, 2014, raised $155.0 million through the Partnership’s initial public offering (“IPO”) |
• | Reported Adjusted EBITDA of $10.9 million and Distributable Cash Flow of $9.6 million |
• | Reported a Net Loss of $1.1 million |
• | On January 29, 2015, declared an initial quarterly cash distribution of $0.24375 per unit, representing the prorated amount of the Partnership’s targeted minimum quarterly distribution of $0.2875 per unit ($1.15 per unit on an annualized basis) |
• | our operating performance as compared to those of other companies in the midstream sector, without regard to financing methods, historical cost basis or capital structure; |
• | the ability of our assets to generate sufficient cash flow to make distributions to our partners; |
• | our ability to incur and service debt and fund capital expenditures; and |
• | the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. |
USD Partners LP | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
For the Three Months and Years Ended December 31, 2014 and 2013 | |||||||||||||||
(unaudited) | |||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||||
Revenues: | |||||||||||||||
Terminalling services | $ | 6,945 | $ | 1,792 | $ | 18,266 | $ | 7,130 | |||||||
Terminalling services - related party | 2,185 | — | 3,499 | — | |||||||||||
Railroad incentives | 142 | — | 719 | — | |||||||||||
Fleet leases | 2,003 | 2,626 | 8,788 | 13,572 | |||||||||||
Fleet services | 145 | (304 | ) | 720 | 235 | ||||||||||
Fleet services - related party | 417 | 216 | 1,501 | 962 | |||||||||||
Freight and other reimbursables | 316 | 834 | 2,141 | 1,778 | |||||||||||
Freight and other reimbursables - related party | 38 | 2,624 | 464 | 2,624 | |||||||||||
Total revenues | 12,191 | 7,788 | 36,098 | 26,301 | |||||||||||
Operating costs: | |||||||||||||||
Subcontracted rail services | 2,399 | 480 | 6,994 | 1,898 | |||||||||||
Pipeline fees | 1,965 | — | 3,625 | — | |||||||||||
Fleet leases | 2,003 | 2,626 | 8,788 | 13,572 | |||||||||||
Freight and other reimbursables | 354 | 3,458 | 2,605 | 4,402 | |||||||||||
Selling, general & administrative | 3,780 | 571 | 10,808 | 4,458 | |||||||||||
Depreciation | 1,294 | 126 | 2,631 | 502 | |||||||||||
Total operating costs | 11,795 | 7,261 | 35,451 | 24,832 | |||||||||||
Operating income | 396 | 527 | 647 | 1,469 | |||||||||||
Interest expense | (1,316 | ) | (716 | ) | (4,825 | ) | (3,241 | ) | |||||||
Gain associated with derivative contracts | 963 | — | 1,536 | — | |||||||||||
Foreign currency transaction loss | (1,171 | ) | (39 | ) | (4,850 | ) | (39 | ) | |||||||
Loss before provision for income taxes | (1,128 | ) | (228 | ) | (7,492 | ) | (1,811 | ) | |||||||
Provision for income taxes | 101 | 8 | 186 | 30 | |||||||||||
Loss from continuing operations | (1,229 | ) | (236 | ) | (7,678 | ) | (1,841 | ) | |||||||
Discontinued operations: | |||||||||||||||
Income from discontinued operations | 152 | 226 | — | 948 | |||||||||||
Gain on sale of discontinued operations | — | 16 | — | 7,295 | |||||||||||
Net (loss) income | $ | (1,077 | ) | $ | 6 | $ | (7,678 | ) | $ | 6,402 |
USD Partners LP | |||||||
Consolidated Balance Sheets | |||||||
(unaudited) | |||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
ASSETS | (in thousands) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 40,249 | $ | 6,151 | |||
Restricted cash | 6,490 | — | |||||
Accounts receivable, net | 4,221 | 1,587 | |||||
Accounts receivable — related party | 134 | 402 | |||||
Prepaid rent, current portion | 3,229 | 983 | |||||
Prepaid expenses and other current assets | 7,141 | 1,977 | |||||
Note receivable — related party | 2,472 | — | |||||
Current assets — discontinued operations | — | 30,076 | |||||
Total current assets | 63,936 | 41,176 | |||||
Property and equipment, net | 84,059 | 61,364 | |||||
Prepaid rent, net of current portion | 2,757 | 4,278 | |||||
Deferred financing costs, net | 2,900 | 450 | |||||
Total assets | $ | 153,652 | $ | 107,268 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 3,875 | $ | 7,073 | |||
Accounts payable — related party | 492 | — | |||||
Loan from parent | — | 50,991 | |||||
Deferred revenue, current portion | 15,540 | 1,563 | |||||
Deferred revenue, current portion — related party | 5,256 | — | |||||
Other current liabilities | 877 | 3,656 | |||||
Current liabilities — discontinued operations | — | 5,835 | |||||
Total current liabilities | 26,040 | 69,118 | |||||
Credit facility | 81,358 | 30,000 | |||||
Deferred revenue, net of current portion | 3,656 | 4,585 | |||||
Deferred revenue — related party, net of current portion | 1,931 | 962 | |||||
Total liabilities | 112,985 | 104,665 | |||||
Commitments and contingencies | |||||||
Partners’ capital | |||||||
Predecessor partner interest | — | 4,003 | |||||
Common units | 128,097 | — | |||||
Class A units | 550 | — | |||||
Subordinated units | (87,978 | ) | — | ||||
General partner units | 103 | — | |||||
Accumulated other comprehensive loss | (105 | ) | (1,400 | ) | |||
Total partners' capital | 40,667 | 2,603 | |||||
Total liabilities and partners' capital | $ | 153,652 | $ | 107,268 |
USD Partners LP | |||||||||||||||
GAAP to Non-GAAP Reconciliations | |||||||||||||||
For the Three Months and Years Ended December 31, 2014 and 2013 | |||||||||||||||
(unaudited) | |||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||||
Net cash flows provided by (used in) operating activities | $ | (704 | ) | $ | (8,500 | ) | $ | (3,085 | ) | $ | 9,239 | ||||
Add (deduct): | |||||||||||||||
Discontinued operations | 152 | 242 | — | 8,243 | |||||||||||
Depreciation | (1,294 | ) | (126 | ) | (2,631 | ) | (502 | ) | |||||||
Settlement of derivative contracts | (344 | ) | — | (344 | ) | — | |||||||||
Gain associated with derivative instruments | 963 | — | 1,536 | — | |||||||||||
Bad debt expense | 51 | — | (1,424 | ) | — | ||||||||||
Amortization of deferred financing costs | (179 | ) | (445 | ) | (1,056 | ) | (1,420 | ) | |||||||
Unit based compensation expense | (550 | ) | — | (550 | ) | — | |||||||||
Changes in accounts receivable and other assets | 3,406 | 3,524 | 8,511 | 5,657 | |||||||||||
Changes in accounts payable and accrued expenses | (116 | ) | 5,431 | 2,372 | (6,590 | ) | |||||||||
Changes in deferred revenue and other liabilities | (8,952 | ) | (120 | ) | (17,497 | ) | (8,225 | ) | |||||||
Change in restricted cash | 6,490 | — | 6,490 | — | |||||||||||
Net income (loss) | (1,077 | ) | 6 | (7,678 | ) | 6,402 | |||||||||
Add (deduct): | |||||||||||||||
Interest expense | 1,316 | 716 | 4,825 | 3,241 | |||||||||||
Depreciation | 1,294 | 126 | 2,631 | 502 | |||||||||||
Provision for income taxes | 101 | 8 | 186 | 30 | |||||||||||
EBITDA | 1,634 | 856 | (36 | ) | 10,175 | ||||||||||
Add (deduct): | |||||||||||||||
Unrealized gain associated with derivative instruments | (619 | ) | — | (1,192 | ) | — | |||||||||
Unit based compensation expense | 550 | — | 550 | — | |||||||||||
Foreign currency transaction loss (1) | 1,171 | 39 | 4,850 | 39 | |||||||||||
Unrecovered reimbursable freight costs | 141 | — | 1,616 | — | |||||||||||
Deferred revenue associated with minimum commitment fees (2) | 8,130 | — | 9,478 | — | |||||||||||
Discontinued operations | (152 | ) | (242 | ) | — | (8,243 | ) | ||||||||
Adjusted EBITDA | 10,855 | 653 | 15,266 | 1,971 | |||||||||||
Add (deduct): | |||||||||||||||
Cash paid for income taxes | (16 | ) | (4 | ) | (101 | ) | (26 | ) | |||||||
Cash paid for interest | (1,192 | ) | (269 | ) | (3,588 | ) | (1,829 | ) | |||||||
Maintenance capital expenditures | — | — | — | — | |||||||||||
Distributable cash flow | $ | 9,647 | $ | 380 | $ | 11,577 | $ | 116 | |||||||
(1) U.S. denominated monetary items of the Partnership's international operations are remeasured at the applicable rates of | |||||||||||||||
exchange throughout the reporting period, with any corresponding foreign exchange gains or losses from remeasurement recorded | |||||||||||||||
in the Partnership's Consolidated Statements of Operations. Foreign currency transaction loss primarily consists of losses incurred | |||||||||||||||
as a result of remeasurement of U.S. dollar denominated bank debt in the predecessor period, recapitalization transactions | |||||||||||||||
completed within the predecessor period prior to the IPO, and other normal course third party transactions. All predecessor debt | |||||||||||||||
and intercompany notes were paid off at IPO. | |||||||||||||||
(2) Net of prepaid, corresponding Gibson pipeline fee that will be recognized as expense concurrently with deferred revenue. |
USD Partners LP | |||||||||||||||
Segment Reconciliations | |||||||||||||||
For the Three Months and Years Ended December 31, 2014 and 2013 | |||||||||||||||
(unaudited) | |||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Adjusted EBITDA | (in thousands) | ||||||||||||||
Terminalling services | $ | 11,564 | $ | 313 | $ | 15,397 | $ | 1,528 | |||||||
Fleet services | 331 | 452 | 1,187 | 817 | |||||||||||
Corporate and other | (1,040 | ) | (112 | ) | (1,318 | ) | (374 | ) | |||||||
Total Adjusted EBITDA | 10,855 | 653 | 15,266 | 1,971 | |||||||||||
Add (deduct): | |||||||||||||||
Interest expense | 1,316 | 716 | 4,825 | 3,241 | |||||||||||
Depreciation | 1,294 | 126 | 2,631 | 502 | |||||||||||
Provision for income taxes | 101 | 8 | 186 | 30 | |||||||||||
Unrealized gain associated with derivative instruments | (619 | ) | — | (1,192 | ) | — | |||||||||
Unit based compensation expense | 550 | — | 550 | — | |||||||||||
Foreign currency transaction loss (1) | 1,171 | 39 | 4,850 | 39 | |||||||||||
Unrecovered reimbursable freight costs | 141 | — | 1,616 | — | |||||||||||
Deferred revenue associated with minimum commitment fees (2) | 8,130 | — | 9,478 | — | |||||||||||
Income (loss) from continuing operations | $ | (1,229 | ) | $ | (236 | ) | $ | (7,678 | ) | $ | (1,841 | ) | |||
Terminalling Services Segment | For the Three Months Ended | For the Year Ended | |||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||||
Adjusted EBITDA | $ | 11,564 | $ | 313 | $ | 15,397 | $ | 1,528 | |||||||
Interest expense | 91 | 716 | 3,600 | 3,241 | |||||||||||
Depreciation | 1,294 | 126 | 2,631 | 502 | |||||||||||
Provision for income taxes | 18 | (1 | ) | 47 | 21 | ||||||||||
Unrealized gain associated with derivative instruments | (619 | ) | — | (1,192 | ) | — | |||||||||
Foreign currency transaction loss (1) | 722 | 39 | 4,406 | 39 | |||||||||||
Deferred revenue associated with minimum commitment fees (2) | 8,130 | — | 9,478 | — | |||||||||||
Income (loss) from continuing operations | $ | 1,928 | $ | (567 | ) | $ | (3,573 | ) | $ | (2,275 | ) | ||||
Fleet Services Segment | For the Three Months Ended | For the Year Ended | |||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||||
Adjusted EBITDA | $ | 331 | $ | 452 | $ | 1,187 | $ | 817 | |||||||
Interest expense | — | — | — | — | |||||||||||
Depreciation | — | — | — | — | |||||||||||
Provision for income taxes | 84 | 9 | 140 | 9 | |||||||||||
Foreign currency transaction (gain) (1) | (12 | ) | — | (17 | ) | — | |||||||||
Unrecovered reimbursable freight costs | 141 | — | 1,616 | — | |||||||||||
Income (loss) from continuing operations | $ | 118 | $ | 443 | $ | (552 | ) | $ | 808 | ||||||
(1) U.S. denominated monetary items of the Partnership's international operations are remeasured at the applicable rates of | |||||||||||||||
exchange throughout the reporting period, with any corresponding foreign exchange gains or losses from remeasurement recorded | |||||||||||||||
in the Partnership's Consolidated Statements of Operations. Foreign currency transaction loss primarily consists of losses incurred | |||||||||||||||
as a result of remeasurement of U.S. dollar denominated bank debt in the predecessor period, recapitalization transactions | |||||||||||||||
completed within the predecessor period prior to the IPO, and other normal course third party transactions. All predecessor debt | |||||||||||||||
and intercompany notes were paid off at IPO. | |||||||||||||||
(2) Net of prepaid, corresponding Gibson pipeline fee that will be recognized as expense concurrently with deferred revenue. |
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