SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2018

The following tables summarize our reportable segment data:



	Three Months Ended September 30, 2018
	Terminalling services			Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	21,728		$	—		$	—		$	21,728
Terminalling services — related party	5,715			—			—			5,715
Fleet leases	—			—			—			—
Fleet leases — related party	—			984			—			984
Fleet services	—			80			—			80
Fleet services — related party	—			227			—			227
Freight and other reimbursables	644			208			—			852
Freight and other reimbursables — related party	—			—			—			—
Total revenues	28,087			1,499			—			29,586
Operating costs
Subcontracted rail services	3,674			—			—			3,674
Pipeline fees	5,267			—			—			5,267
Fleet leases	—			984			—			984
Freight and other reimbursables	644			208			—			852
Operating and maintenance	1,292			68			—			1,360
Selling, general and administrative	1,346			401			2,609			4,356
Depreciation and amortization	5,271			—			—			5,271
Total operating costs	17,494			1,661			2,609			21,764
Operating income (loss)	10,593			(162		)	(2,609		)	7,822
Interest expense	—			—			2,827			2,827
Gain associated with derivative instruments	—			—			(413		)	(413		)
Foreign currency transaction loss (gain)	(30		)	3			(62		)	(89		)
Other income, net	(1		)	—			—			(1		)
Provision for (benefit from) income taxes	(431		)	5			(4		)	(430		)
Net income (loss)	$	11,055		$	(170	)	$	(4,957	)	$	5,928



	Three Months Ended September 30, 2017
	Terminalling services			Fleet services		Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	19,805		$	—	$	—		$	19,805
Terminalling services — related party	4,737			—		—			4,737
Fleet leases	—			643		—			643
Fleet leases — related party	—			1,013		—			1,013
Fleet services	—			470		—			470
Fleet services — related party	—			218		—			218
Freight and other reimbursables	—			118		—			118
Freight and other reimbursables — related party	—			—		—			—
Total revenues	24,542			2,462		—			27,004
Operating costs
Subcontracted rail services	2,340			—		—			2,340
Pipeline fees	5,973			—		—			5,973
Fleet leases	—			1,656		—			1,656
Freight and other reimbursables	—			118		—			118
Operating and maintenance	654			95		—			749
Selling, general and administrative	1,395			210		2,093			3,698
Depreciation and amortization	5,254			—		—			5,254
Total operating costs	15,616			2,079		2,093			19,788
Operating income (loss)	8,926			383		(2,093		)	7,216
Interest expense	—			—		2,388			2,388
Loss associated with derivative instruments	667			—		—			667
Foreign currency transaction loss (gain)	(20		)	4		(441		)	(457		)
Other income, net	(52		)	—		—			(52		)
Provision for (benefit from) income taxes	(770		)	196		(31		)	(605		)
Net income (loss)	$	9,101		$	183	$	(4,009	)	$	5,275



	Nine Months Ended September 30, 2018
	Terminalling services			Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	65,560		$	—		$	—		$	65,560
Terminalling services — related party	15,414			—			—			15,414
Fleet leases	—			—			—			—
Fleet leases — related party	—			2,951			—			2,951
Fleet services	—			505			—			505
Fleet services — related party	—			682			—			682
Freight and other reimbursables	2,088			1,692			—			3,780
Freight and other reimbursables — related party	3			1			—			4
Total revenues	83,065			5,831			—			88,896
Operating costs
Subcontracted rail services	10,047			—			—			10,047
Pipeline fees	16,109			—			—			16,109
Fleet leases	—			2,961			—			2,961
Freight and other reimbursables	2,091			1,693			—			3,784
Operating and maintenance	3,336			217			—			3,553
Selling, general and administrative	4,133			961			8,458			13,552
Depreciation and amortization	15,807			—			—			15,807
Total operating costs	51,523			5,832			8,458			65,813
Operating income (loss)	31,542			(1		)	(8,458		)	23,083
Interest expense	—			—			8,025			8,025
Gain associated with derivative instruments	—			—			(1,823		)	(1,823		)
Foreign currency transaction loss (gain)	32			(4		)	(211		)	(183		)
Other expense, net	71			—			—			71
Provision for (benefit from) income taxes	(2,265		)	21			(3		)	(2,247		)
Net income (loss)	$	33,704		$	(18	)	$	(14,446	)	$	19,240



	Nine Months Ended September 30, 2017
	Terminalling services			Fleet services		Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	65,463		$	—	$	—		65,463
Terminalling services — related party	$	9,091		$	—	$	—		9,091
Fleet leases	—			1,929		—			1,929
Fleet leases — related party	—			2,794		—			2,794
Fleet services	—			1,405		—			1,405
Fleet services — related party	—			776		—			776
Freight and other reimbursables	110			373		—			483
Freight and other reimbursables — related party	—			1		—			1
Total revenues	74,664			7,278		—			81,942
Operating costs
Subcontracted rail services	6,148			—		—			6,148
Pipeline fees	16,802			—		—			16,802
Fleet leases	—			4,723		—			4,723
Freight and other reimbursables	110			374		—			484
Operating and maintenance	1,765			285		—			2,050
Selling, general and administrative	3,795			694		6,714			11,203
Depreciation and amortization	15,164			—		—			15,164
Total operating costs	43,784			6,076		6,714			56,574
Operating income (loss)	30,880			1,202		(6,714		)	25,368
Interest expense	170			—		7,338			7,508
Loss associated with derivative instruments	1,279			—		—			1,279
Foreign currency transaction loss (gain)	(33		)	6		(500		)	(527		)
Other income, net	(65		)	—		—			(65		)
Provision for (benefit from) income taxes	(2,140		)	511		(177		)	(1,806		)
Net income (loss)	$	31,669		$	685	$	(13,375	)	$	18,979

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in thousands)
Segment Adjusted EBITDA
Terminalling services	$	15,814		$	14,076		$	47,197		$	46,336
Fleet services	(162		)	383			(1		)	1,202
Corporate activities ⁽¹⁾	(1,171		)	(1,147		)	(4,163		)	(3,752		)
Total Adjusted EBITDA	14,481			13,312			43,033			43,786
Add (deduct):
Amortization of deferred financing costs	216			216			646			646
Deferred income taxes	(731		)	(647		)	(3,269		)	(293		)
Changes in accounts receivable and other assets	5,836			2,822			(578		)	1,512
Changes in accounts payable and accrued expenses	(4,767		)	2,033			(1,789		)	947
Changes in deferred revenue and other liabilities	(150		)	(1,176		)	(386		)	(3,913		)
Interest expense, net	(2,827		)	(2,384		)	(8,025		)	(7,500		)
Benefit from income taxes	430			605			2,247			1,806
Foreign currency transaction gain ⁽²⁾	89			457			183			527
Other income	—			4			—			25
Non-cash contract asset ⁽³⁾	51			—			154			—
Net cash provided by operating activities	$	12,628		$	15,242		$	32,216		$	37,543


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


⁽²⁾	Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries.


⁽³⁾	Represents the change in non-cash contract assets associated with revenue recognized in advance at blended rates based on the escalation clauses in certain of our agreements. Refer to Note 4. Revenues — Contract Assets for more information.