SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2016

Summary of Reportable Segment Data for Continuing Operations

The following tables summarize our reportable segment data:



	Three Months Ended June 30, 2016
	Terminalling services			Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	23,459		$	—		$	—		$	23,459
Terminalling services — related party	1,756			—			—			1,756
Railroad incentives	22			—			—			22
Fleet leases	—			647			—			647
Fleet leases — related party	—			891			—			891
Fleet services	—			69			—			69
Fleet services — related party	—			684			—			684
Freight and other reimbursables	19			331			—			350
Freight and other reimbursables — related party	—			—			—			—
Total revenues	25,256			2,622			—			27,878
Operating costs
Subcontracted rail services	2,026			—			—			2,026
Pipeline fees	5,338			—			—			5,338
Fleet leases	—			1,538			—			1,538
Freight and other reimbursables	19			331			—			350
Selling, general and administrative	1,748			298			2,249			4,295
Depreciation and amortization	4,914			—			—			4,914
Total operating costs	14,045			2,167			2,249			18,461
Operating income (loss)	11,211			455			(2,249		)	9,417
Interest expense	352			—			2,181			2,533
Gain associated with derivative instruments	(253		)	—			—			(253		)
Foreign currency transaction loss (gain)	5			(20		)	—			(15		)
Provision for (benefit from) income taxes	1,948			(32		)	1			1,917
Net income (loss)	$	9,159		$	507		$	(4,431	)	$	5,235
Goodwill	$	33,970		$	—		$	—		$	33,970



	Three Months Ended June 30, 2015
	Terminalling services		Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	14,279	$	—		$	—		$	14,279
Terminalling services — related party	1,803		—			—			1,803
Railroad incentives	18		—			—			18
Fleet leases	—		1,906			—			1,906
Fleet leases — related party	—		1,011			—			1,011
Fleet services	—		155			—			155
Fleet services — related party	—		670			—			670
Freight and other reimbursables	—		531			—			531
Freight and other reimbursables — related party	—		22			—			22
Total revenues	16,100		4,295			—			20,395
Operating costs
Subcontracted rail services	2,222		—			—			2,222
Pipeline fees	4,460		—			—			4,460
Fleet leases	—		2,917			—			2,917
Freight and other reimbursables	—		553			—			553
Selling, general and administrative	1,248		205			1,887			3,340
Depreciation and amortization	1,096		—			—			1,096
Total operating costs	9,026		3,675			1,887			14,588
Operating income (loss)	7,074		620			(1,887		)	5,807
Interest expense	572		—			423			995
Loss associated with derivative instruments	218		—			—			218
Foreign currency transaction loss (gain)	8		(50		)	—			(42		)
Provision for income taxes	1,973		10			1			1,984
Net income (loss)	$	4,303	$	660		$	(2,311	)	$	2,652



	Six Months Ended June 30, 2016
	Terminalling services			Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	45,482		$	—		$	—		$	45,482
Terminalling services — related party	3,406			—			—			3,406
Railroad incentives	37			—			—			37
Fleet leases	—			1,290			—			1,290
Fleet leases — related party	—			1,781			—			1,781
Fleet services	—			138			—			138
Fleet services — related party	—			1,368			—			1,368
Freight and other reimbursables	19			714			—			733
Freight and other reimbursables — related party	—			—			—			—
Total revenues	48,944			5,291			—			54,235
Operating costs
Subcontracted rail services	4,069			—			—			4,069
Pipeline fees	10,052			—			—			10,052
Fleet leases	—			3,071			—			3,071
Freight and other reimbursables	19			714			—			733
Selling, general and administrative	3,797			547			5,207			9,551
Depreciation and amortization	9,819			—			—			9,819
Total operating costs	27,756			4,332			5,207			37,295
Operating income (loss)	21,188			959			(5,207		)	16,940
Interest expense	682			—			4,034			4,716
Loss associated with derivative instruments	1,270			—			—			1,270
Foreign currency transaction gain	(75		)	(70		)	—			(145		)
Provision for (benefit from) income taxes	3,731			(18		)	1			3,714
Net income (loss)	$	15,580		$	1,047		$	(9,242	)	$	7,385
Goodwill	$	33,970		$	—		$	—		$	33,970



	Six Months Ended June 30, 2015
	Terminalling services			Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	22,666		$	—		$	—		$	22,666
Terminalling services — related party	1,803			—			—			1,803
Railroad incentives	27			—			—			27
Fleet leases	—			3,784			—			3,784
Fleet leases — related party	—			2,221			—			2,221
Fleet services	—			311			—			311
Fleet services — related party	—			1,542			—			1,542
Freight and other reimbursables	—			1,487			—			1,487
Freight and other reimbursables — related party	—			62			—			62
Total revenues	24,496			9,407			—			33,903
Operating costs
Subcontracted rail services	4,449			—			—			4,449
Pipeline fees	6,403			—			—			6,403
Fleet leases	—			6,005			—			6,005
Freight and other reimbursables	—			1,549			—			1,549
Selling, general and administrative	2,542			464			3,730			6,736
Depreciation and amortization	2,189			—			—			2,189
Total operating costs	15,583			8,018			3,730			27,331
Operating income (loss)	8,913			1,389			(3,730		)	6,572
Interest expense	1,174			—			813			1,987
Gain associated with derivative instruments	(1,731		)	—			—			(1,731		)
Foreign currency transaction loss (gain)	54			(27		)	(410		)	(383		)
Provision for income taxes	1,980			25			1			2,006
Net income (loss)	$	7,436		$	1,391		$	(4,134	)	$	4,693

Reconciliation of Adjusted EBITDA to Loss from Continuing Operations

The following table provides a reconciliation of Segment Adjusted EBITDA to Net cash provided by operating activities:



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(in thousands)
Segment Adjusted EBITDA
Terminalling services	$	17,095		$	10,504		$	33,230		$	21,160
Fleet services	455			620			959			1,389
Corporate activities ⁽¹⁾	(1,280		)	(1,213		)	(3,510		)	(2,329		)
Total Adjusted EBITDA	16,270			9,911			30,679			20,220
Add (deduct):
Amortization of deferred financing costs	215			160			430			319
Deferred income taxes	(50		)	878			(96		)	878
Changes in accounts receivable and other assets	(458		)	2,249			1,507			(4,845		)
Changes in accounts payable and accrued expenses	(1,112		)	(1,207		)	(1,937		)	(2,245		)
Changes in deferred revenue and other liabilities	1,555			3,118			2,100			12,629
Change in restricted cash	1,793			(837		)	(633		)	323
Interest expense	(2,533		)	(995		)	(4,716		)	(1,987		)
Provision for income taxes	(1,917		)	(1,984		)	(3,714		)	(2,006		)
Foreign currency transaction gain ⁽²⁾	15			42			145			383
Deferred revenue associated with minimum monthly commitment fees ⁽³⁾	(424		)	(1,550		)	(1,187		)	(8,380		)
Net cash provided by operating activities	$	13,354		$	9,785		$	22,578		$	15,289


⁽¹⁾	Corporate activities represent corporate and financing transactions that are not allocated to our established reporting segments.


⁽²⁾	Represents foreign exchange transactions gains or losses associated with activities between our U.S. and Canadian subsidiaries.

⁽³⁾

Represents deferred revenue associated with minimum monthly commitment fees in excess of throughput utilized, which fees are not refundable to our 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) revenue recognized in the current period that was previously deferred; and (c) expense recognized for previously prepaid Gibson pipeline fees, which correspond with the revenue recognized that was previously deferred. Refer to additional discussion of deferred revenue in Note 7 of these consolidated financial statements.