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. |
USD Partners LP | ||||
By: | USD Partners GP LLC, | |||
its general partner | ||||
Dated: August 11, 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 August 11, 2015. |
• | Increased quarterly cash distribution to $0.29 per unit ($1.16 per unit on an annualized basis), payable on August 14, 2015, to unitholders of record at the close of business on August 10, 2015 |
• | Reported Adjusted EBITDA of $9.9 million and Distributable Cash Flow of $8.7 million |
• | Reported Net Income of $2.7 million |
• | Entered into foreign exchange hedges for the full year 2016 |
• | Ended quarter with available liquidity of approximately $265.5 million |
• | 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 our ability to generate incremental cash flows from these opportunities. |
USD Partners LP | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
For the Three and Six Months Ended June 30, 2015 and 2014 | |||||||||||||||
(unaudited) | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Revenues: | |||||||||||||||
Terminalling services | $ | 14,279 | $ | 1,870 | $ | 22,666 | $ | 3,448 | |||||||
Terminalling services - related party | 1,803 | — | 1,803 | — | |||||||||||
Railroad incentives | 18 | — | 27 | — | |||||||||||
Fleet leases | 1,906 | 2,422 | 3,784 | 4,596 | |||||||||||
Fleet leases - related party | 1,011 | — | 2,221 | — | |||||||||||
Fleet services | 155 | 137 | 311 | 238 | |||||||||||
Fleet services - related party | 670 | 364 | 1,542 | 718 | |||||||||||
Freight and other reimbursables | 531 | 614 | 1,487 | 1,702 | |||||||||||
Freight and other reimbursables - related party | 22 | 29 | 62 | 219 | |||||||||||
Total Revenues | 20,395 | 5,436 | 33,903 | 10,921 | |||||||||||
Operating costs: | |||||||||||||||
Subcontracted rail services | 2,222 | 1,629 | 4,449 | 2,109 | |||||||||||
Pipeline fees | 4,460 | — | 6,403 | — | |||||||||||
Fleet leases | 2,917 | 2,422 | 6,005 | 4,596 | |||||||||||
Freight and other reimbursables | 553 | 643 | 1,549 | 1,921 | |||||||||||
Selling, general & administrative | 2,233 | 1,474 | 4,450 | 2,008 | |||||||||||
Selling, general & administrative - related party | 1,107 | 920 | 2,286 | 1,805 | |||||||||||
Depreciation | 1,096 | 128 | 2,189 | 254 | |||||||||||
Total Operating Costs | 14,588 | 7,216 | 27,331 | 12,693 | |||||||||||
Operating Income (loss) | 5,807 | (1,780 | ) | 6,572 | (1,772 | ) | |||||||||
Interest expense | 995 | 1,041 | 1,987 | 1,984 | |||||||||||
Loss (gain) associated with derivative instruments | 218 | 802 | (1,731 | ) | 802 | ||||||||||
Foreign currency transaction loss (gain) | (42 | ) | 558 | (383 | ) | 688 | |||||||||
Income (loss) before provision for income taxes | 4,636 | (4,181 | ) | 6,699 | (5,246 | ) | |||||||||
Provision for income taxes | 1,984 | 18 | 2,006 | 24 | |||||||||||
Income (Loss) from Continuing Operations | 2,652 | (4,199 | ) | 4,693 | (5,270 | ) | |||||||||
Discontinued operations: | |||||||||||||||
Income (loss) from discontinued operations | — | (194 | ) | — | 31 | ||||||||||
Net Income (Loss) | $ | 2,652 | $ | (4,393 | ) | $ | 4,693 | $ | (5,239 | ) |
USD Partners LP | |||||||
Consolidated Balance Sheets | |||||||
(unaudited) | |||||||
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 37,888 | $ | 40,249 | |||
Restricted cash | 5,785 | 6,490 | |||||
Accounts receivable, net | 2,782 | 4,221 | |||||
Accounts receivable — related party | 2,179 | 134 | |||||
Prepaid expenses and other current assets | 15,460 | 10,370 | |||||
Note receivable — related party | 2,327 | 2,472 | |||||
Total current assets | 66,421 | 63,936 | |||||
Property and equipment, net | 78,701 | 84,059 | |||||
Other non-current assets | 5,248 | 5,657 | |||||
Total Assets | $ | 150,370 | $ | 153,652 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Current liabilities | |||||||
Accounts payable and accrued expenses | $ | 2,749 | $ | 3,875 | |||
Accounts payable - related party | — | 492 | |||||
Deferred revenue, current portion | 26,213 | 15,540 | |||||
Deferred revenue, current portion — related party | 5,863 | 5,256 | |||||
Other current liabilities | 2,083 | 877 | |||||
Total current liabilities | 36,908 | 26,040 | |||||
Long-term debt | 72,385 | 81,358 | |||||
Deferred revenue, net of current portion | 2,839 | 3,656 | |||||
Deferred revenue, net of current portion — related party | 1,917 | 1,931 | |||||
Non-current deferred income tax liability | 876 | — | |||||
Total Liabilities | 114,925 | 112,985 | |||||
Commitments and contingencies | |||||||
Partners’ capital | |||||||
Common units | 125,369 | 128,097 | |||||
Class A units | 1,329 | 550 | |||||
Subordinated units | (91,280 | ) | (87,978 | ) | |||
General partner units | (30 | ) | 103 | ||||
Accumulated other comprehensive income (loss) | 57 | (105 | ) | ||||
Total Partners' Capital | 35,445 | 40,667 | |||||
Total Liabilities and Partners' Capital | $ | 150,370 | $ | 153,652 |
USD Partners LP | |||||||||||||||
GAAP to Non-GAAP Reconciliations | |||||||||||||||
For the Three and Six Months Ended March 31, 2015 and 2014 | |||||||||||||||
(unaudited) | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Net cash flows provided by operating activities | $ | 9,785 | $ | 2,734 | $ | 15,289 | $ | 1,667 | |||||||
Add (deduct): | |||||||||||||||
Discontinued operations | — | (194 | ) | — | 31 | ||||||||||
Depreciation | (1,096 | ) | (128 | ) | (2,189 | ) | (254 | ) | |||||||
Gain (loss) associated with derivative instruments | (218 | ) | (802 | ) | 1,731 | (802 | ) | ||||||||
Settlement of derivative contracts (1) | (784 | ) | — | (1,678 | ) | — | |||||||||
Bad debt expense | — | (610 | ) | — | (610 | ) | |||||||||
Amortization of deferred financing costs | (160 | ) | (207 | ) | (319 | ) | (657 | ) | |||||||
Unit based compensation expense | (674 | ) | — | (1,401 | ) | — | |||||||||
Deferred income taxes | (878 | ) | — | (878 | ) | — | |||||||||
Changes in accounts receivable and other assets | (2,119 | ) | 1,199 | 5,487 | 2,597 | ||||||||||
Changes in accounts payable and accrued expenses | 1,077 | (3,474 | ) | 1,603 | (2,350 | ) | |||||||||
Changes in deferred revenue and other liabilities | (3,118 | ) | (2,911 | ) | (12,629 | ) | (4,861 | ) | |||||||
Change in restricted cash | 837 | — | (323 | ) | — | ||||||||||
Net income (loss) | 2,652 | (4,393 | ) | 4,693 | (5,239 | ) | |||||||||
Add (deduct): | |||||||||||||||
Interest expense | 995 | 1,041 | 1,987 | 1,984 | |||||||||||
Depreciation | 1,096 | 128 | 2,189 | 254 | |||||||||||
Provision for income taxes | 1,984 | 18 | 2,006 | 24 | |||||||||||
EBITDA | 6,727 | (3,206 | ) | 10,875 | (2,977 | ) | |||||||||
Add (deduct): | |||||||||||||||
Loss (gain) associated with derivative instruments | 218 | 802 | (1,731 | ) | 802 | ||||||||||
Settlement of derivative contracts (1) | 784 | — | 1,678 | — | |||||||||||
Unit based compensation expense | 674 | — | 1,401 | — | |||||||||||
Foreign currency transaction loss (gain) (2) | (42 | ) | 558 | (383 | ) | 688 | |||||||||
Deferred revenue associated with minimum monthly commitment fees (3) | 1,550 | — | 8,380 | — | |||||||||||
Discontinued operations | — | 194 | — | (31 | ) | ||||||||||
Adjusted EBITDA | 9,911 | (1,652 | ) | 20,220 | (1,518 | ) | |||||||||
Add (deduct): | |||||||||||||||
Cash paid for income taxes | (267 | ) | (20 | ) | (282 | ) | (25 | ) | |||||||
Cash paid for interest | (946 | ) | (689 | ) | (1,960 | ) | (1,135 | ) | |||||||
Maintenance capital expenditures | — | — | — | — | |||||||||||
Distributable Cash Flow | $ | 8,698 | $ | (2,361 | ) | $ | 17,978 | $ | (2,678 | ) | |||||
(1) The amounts presented represent the gross proceeds received at the time the derivative contracts were settled and do not consider the amounts paid in connection with the initial purchase of the derivative contracts. We purchased the derivative contracts for $93 thousand and $173 thousand with respect to the contracts settled in the three and six months ended June 30, 2015, respectively. | |||||||||||||||
(2) Represents foreign exchange transaction expenses associated with our Canadian subsidiaries. | |||||||||||||||
(3) Represents deferred revenue associated with minimum monthly commitment fees in excess of throughput utilized, which fees are not refundable to the customers. Amounts presented are net of: (a) the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue; (b) approximately $11.3 million and $13.9 million of previously deferred revenue generated in prior periods for the three and six months ended June 30, 2015, respectively; and (c) approximately $0.9 million and $1.5 million of previously prepaid Gibson pipeline fees for the three and six months ended June 30, 2015, respectively, which correspond with the previously deferred revenue recognized. |
USD Partners LP | |||||||||||||||
Segment Reconciliations | |||||||||||||||
For the Three and Six Months Ended June 30, 2015 and 2014 | |||||||||||||||
(unaudited) | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Adjusted EBITDA | (in thousands) | ||||||||||||||
Terminalling services | $ | 10,504 | $ | (950 | ) | $ | 21,160 | $ | (616 | ) | |||||
Fleet services | 620 | (294 | ) | 1,389 | (101 | ) | |||||||||
Corporate and other (1) | (1,213 | ) | (408 | ) | (2,329 | ) | (801 | ) | |||||||
Total Adjusted EBITDA | 9,911 | (1,652 | ) | 20,220 | (1,518 | ) | |||||||||
Add (deduct): | |||||||||||||||
Interest expense | (995 | ) | (1,041 | ) | (1,987 | ) | (1,984 | ) | |||||||
Depreciation | (1,096 | ) | (128 | ) | (2,189 | ) | (254 | ) | |||||||
Provision for income taxes | (1,984 | ) | (18 | ) | (2,006 | ) | (24 | ) | |||||||
Gain (loss) associated with derivative instruments | (218 | ) | (802 | ) | 1,731 | (802 | ) | ||||||||
Settlement of derivative contracts (2) | (784 | ) | — | (1,678 | ) | — | |||||||||
Unit based compensation expense | (674 | ) | — | (1,401 | ) | — | |||||||||
Foreign currency transaction gain (loss) (3) | 42 | (558 | ) | 383 | (688 | ) | |||||||||
Deferred revenue associated with minimum monthly commitment fees (4) | (1,550 | ) | — | (8,380 | ) | — | |||||||||
Income (loss) from continuing operations | $ | 2,652 | $ | (4,199 | ) | $ | 4,693 | $ | (5,270 | ) | |||||
Terminalling Services Segment | For the Three Months Ended | For the Six Months Ended | |||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Adjusted EBITDA | $ | 10,504 | $ | (950 | ) | $ | 21,160 | $ | (616 | ) | |||||
Interest expense | (572 | ) | (1,041 | ) | (1,174 | ) | (1,984 | ) | |||||||
Depreciation | (1,096 | ) | (128 | ) | (2,189 | ) | (254 | ) | |||||||
Provision for income taxes | (1,973 | ) | (17 | ) | (1,980 | ) | (22 | ) | |||||||
Gain (loss) associated with derivative instruments | (218 | ) | (802 | ) | 1,731 | (802 | ) | ||||||||
Settlement of derivative contracts (2) | (784 | ) | — | (1,678 | ) | — | |||||||||
Foreign currency transaction gain (loss) (3) | (8 | ) | (558 | ) | (54 | ) | (688 | ) | |||||||
Deferred revenue associated with minimum monthly commitment fees (4) | (1,550 | ) | — | (8,380 | ) | — | |||||||||
Income (loss) from continuing operations | $ | 4,303 | $ | (3,496 | ) | $ | 7,436 | $ | (4,366 | ) | |||||
Fleet Services Segment | For the Three Months Ended | For the Six Months Ended | |||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Adjusted EBITDA | $ | 620 | $ | (294 | ) | $ | 1,389 | $ | (101 | ) | |||||
Interest expense | — | — | — | — | |||||||||||
Depreciation | — | — | — | — | |||||||||||
Provision for income taxes | (10 | ) | (1 | ) | (25 | ) | (2 | ) | |||||||
Foreign currency transaction loss (3) | 50 | — | 27 | — | |||||||||||
Income (loss) from continuing operations | $ | 660 | $ | (295 | ) | $ | 1,391 | $ | (103 | ) | |||||
(1) Corporate activities represents corporate and financing transactions that are not allocated to the established reporting segments. | |||||||||||||||
(2) The amounts presented represent the gross proceeds received at the time the derivative contracts were settled and do not consider the amounts paid in connection with the initial purchase of the derivative contracts. We purchased the derivative contracts for $93 thousand and $173 thousand with respect to the contracts settled in the three and six months ended June 30, 2015, respectively. | |||||||||||||||
(3) Represents foreign exchange transactional expenses associated with our Canadian subsidiaries. | |||||||||||||||
(4) Represents deferred revenue associated with minimum monthly commitment fees in excess of throughput utilized, which fees are not refundable to the customers. Amounts presented are net of: (a) the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue; (b) approximately $11.3 million and $13.9 million of previously deferred revenue generated in prior periods for the three and six months ended June 30, 2015, respectively; and (c) approximately $0.9 million and $1.5 million of previously prepaid Gibson pipeline fees for the three and six months ended June 30, 2015, respectively. |
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