SEGMENT REPORTING

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

We manage our business in two reportable segments: Terminalling services and Fleet services. The Terminalling services segment charges minimum monthly commitment fees under multi-year take-or-pay contracts to load and unload various grades of crude oil into and from railcars, as well as fixed fees per gallon to transload ethanol from railcars, including related logistics services. We also facilitate rail-to-pipeline shipments of crude oil. Our Terminalling services segment also charges minimum monthly fees to store crude oil in tanks that are leased to our customers. The Fleet services segment provides customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels under multi-year, take-or-pay contracts. Corporate activities are not considered a reportable segment, but are included to present shared services and financing activities which are not allocated to our established reporting segments.

Our segments offer different services and are managed accordingly. Our chief operating decision maker, or CODM, regularly reviews financial information about both segments in order to allocate resources and evaluate performance. Our CODM assesses segment performance based on the cash flows produced by our established reporting segments using Segment Adjusted EBITDA. Segment Adjusted EBITDA is a measure calculated in accordance with GAAP. We define Segment Adjusted EBITDA as “Net income (loss)” of each segment adjusted for depreciation and amortization, interest, income taxes, changes in contract assets and liabilities, deferred revenues, foreign currency transaction gains and losses and other items which do not affect the underlying cash flows produced by our businesses. As such, we have concluded that disaggregating revenue by reporting segments appropriately depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

	Three Months Ended June 30, 2020
	Terminalling services		Fleet services		Corporate		Total
	(in thousands)
Revenues
Terminalling services	$	22,309	$	—	$	—	$	22,309
Terminalling services — related party	3,800		—		—		3,800
Fleet leases — related party	—		983		—		983
Fleet services	—		51		—		51
Fleet services — related party	—		228		—		228
Freight and other reimbursables	32		32		—		64
Freight and other reimbursables — related party	—		1		—		1
Total revenues	26,141		1,295		—		27,436
Operating costs
Subcontracted rail services	2,688		—		—		2,688
Pipeline fees	5,395		—		—		5,395
Freight and other reimbursables	32		33		—		65
Operating and maintenance	3,604		1,025		—		4,629
Selling, general and administrative	1,417		213		2,825		4,455
Goodwill impairment loss	—		—		—		—
Depreciation and amortization	5,203		—		—		5,203
Total operating costs	18,339		1,271		2,825		22,435
Operating income (loss)	7,802		24		(2,825)		5,001
Interest expense	—		—		2,256		2,256
Loss associated with derivative instruments	—		—		332		332
Foreign currency transaction loss	81		3		1,066		1,150
Other income, net	(110)		—		(1)		(111)
Provision for (benefit from) income taxes	208		(20)		—		188
Net income (loss)	$	7,623	$	41	$	(6,478)	$	1,186

	Three Months Ended June 30, 2019
	Terminalling services		Fleet services		Corporate		Total
	(in thousands)
Revenues
Terminalling services	$	19,730	$	—	$	—	$	19,730
Terminalling services — related party	5,525		—		—		5,525
Fleet leases — related party	—		983		—		983
Fleet services	—		51		—		51
Fleet services — related party	—		228		—		228
Freight and other reimbursables	223		75		—		298
Freight and other reimbursables — related party	—		—		—		—
Total revenues	25,478		1,337		—		26,815
Operating costs
Subcontracted rail services	3,699		—		—		3,699
Pipeline fees	4,902		—		—		4,902
Freight and other reimbursables	223		75		—		298
Operating and maintenance	1,525		985		—		2,510
Selling, general and administrative	1,597		203		3,147		4,947
Goodwill impairment loss	—		—		—		—
Depreciation and amortization	5,283		—		—		5,283
Total operating costs	17,229		1,263		3,147		21,639
Operating income (loss)	8,249		74		(3,147)		5,176
Interest expense	—		—		2,982		2,982
Loss associated with derivative instruments	—		—		1,074		1,074
Foreign currency transaction loss (gain)	(54)		4		70		20
Other expense (income), net	25		—		(4)		21
Provision for income taxes	123		5		—		128
Net income (loss)	$	8,155	$	65	$	(7,269)	$	951

	Six Months Ended June 30, 2020
	Terminalling services		Fleet services		Corporate		Total
	(in thousands)
Revenues
Terminalling services	$	46,544	$	—	$	—	$	46,544
Terminalling services — related party	7,888		—		—		7,888
Fleet leases — related party	—		1,967		—		1,967
Fleet services	—		101		—		101
Fleet services — related party	—		455		—		455
Freight and other reimbursables	649		37		—		686
Freight and other reimbursables — related party	—		1		—		1
Total revenues	55,081		2,561		—		57,642
Operating costs
Subcontracted rail services	6,133		—		—		6,133
Pipeline fees	11,742		—		—		11,742
Freight and other reimbursables	649		38		—		687
Operating and maintenance	7,692		2,045		—		9,737
Selling, general and administrative	3,140		526		5,962		9,628
Goodwill impairment loss	33,589		—		—		33,589
Depreciation and amortization	10,625		—		—		10,625
Total operating costs	73,570		2,609		5,962		82,141
Operating loss	(18,489)		(48)		(5,962)		(24,499)
Interest expense	—		—		4,995		4,995
Loss associated with derivative instruments	—		—		3,205		3,205
Foreign currency transaction loss (gain)	7		(3)		1,054		1,058
Other income, net	(839)		—		(4)		(843)
Provision for (benefit from) income taxes	161		(480)		—		(319)
Net income (loss)	$	(17,818)	$	435	$	(15,212)	$	(32,595)

	Six Months Ended June 30, 2019
	Terminalling services		Fleet services		Corporate		Total
	(in thousands)
Revenues
Terminalling services	$	39,728	$	—	$	—	$	39,728
Terminalling services — related party	11,163		—		—		11,163
Fleet leases — related party	—		1,967		—		1,967
Fleet services	—		108		—		108
Fleet services — related party	—		455		—		455
Freight and other reimbursables	521		180		—		701
Freight and other reimbursables — related party	7		54		—		61
Total revenues	51,419		2,764		—		54,183
Operating costs
Subcontracted rail services	7,264		—		—		7,264
Pipeline fees	9,963		—		—		9,963
Freight and other reimbursables	528		234		—		762
Operating and maintenance	3,688		2,033		—		5,721
Selling, general and administrative	3,260		492		6,122		9,874
Goodwill impairment loss	—		—		—		—
Depreciation and amortization	10,017		—		—		10,017
Total operating costs	34,720		2,759		6,122		43,601
Operating income (loss)	16,699		5		(6,122)		10,582
Interest expense	—		—		6,169		6,169
Loss associated with derivative instruments	—		—		1,746		1,746
Foreign currency transaction loss (gain)	(95)		8		289		202
Other expense (income), net	1		—		(4)		(3)
Provision for income taxes	190		8		—		198
Net income (loss)	$	16,603	$	(11)	$	(14,322)	$	2,270

Segment Adjusted EBITDA

The following tables present the computation of Segment Adjusted EBITDA, which is a measure determined in accordance with GAAP, for each of our segments for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
Terminalling Services Segment	2020		2019		2020		2019
	(in thousands)
Net income (loss)	$	7,623	$	8,155	$	(17,818)	$	16,603
Interest income (1)	(2)		(8)		(23)		(15)
Depreciation and amortization	5,203		5,283		10,625		10,017
Provision for income taxes	208		123		161		190
Foreign currency transaction loss (gain) (2)	81		(54)		7		(95)
Loss associated with disposal of assets	—		42		—		50
Goodwill impairment loss	—		—		33,589		—
Other income	—		(25)		—		(42)
Non-cash deferred amounts (3)	1,119		161		1,556		110
Segment Adjusted EBITDA	$	14,232	$	13,677	$	28,097	$	26,818

⁽¹⁾ Represents interest income associated with our Terminalling Services segment that is included in “Other expense (income), net” in our consolidated statements of operations.

⁽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 and liabilities associated with revenue recognized at blended rates based on tiered rate structures in certain of our customer contracts and deferred revenue associated with deficiency credits that are expected to be used in the future prior to their expiration. Amounts presented are net of the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue.

	Three Months Ended June 30,				Six Months Ended June 30,
Fleet Services Segment	2020		2019		2020		2019
	(in thousands)
Net income (loss)	$	41	$	65	$	435	$	(11)
Provision for (benefit from) income taxes	(20)		5		(480)		8
Foreign currency transaction loss (gain) (1)	3		4		(3)		8
Segment Adjusted EBITDA	24		74		(48)		5

⁽¹⁾ Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries.