PBF Logistics Increases Quarterly Distribution to $0.52 per Unit and Announces Third Quarter 2019 Earnings Results

PARSIPPANY, N.J., Oct. 31, 2019 /PRNewswire/ -- PBF Logistics LP PBFX (the "Partnership") today announced third quarter 2019 net income attributable to the limited partners of $31.0 million, or $0.50 per common unit. During the quarter, the Partnership generated cash from operations of approximately $39.8 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $53.5 million, Adjusted EBITDA of $55.5 million and distributable cash flow of $39.5 million. Included in reported results for the third quarter are $2.0 million, or $0.03 per common unit, of expenses related to the Torrance Valley Pipeline Company acquisition, non-cash unit-based compensation and environmental remediation costs associated with the East Coast Terminals.

PBF Logistics Logo (PRNewsfoto/PBF Logistics LP)

"PBF Logistics' assets operated well during the quarter and our results benefited from a full quarter of 100% ownership of the Torrance Valley Pipeline system. We continue to experience increased demand at several of our East Coast terminaling and storage facilities as a result of shifting supply dynamics as a result of lower East Coast refined product supply," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "Additionally, our processing and storage agreement with Maersk is underway and we are seeing increased demand for our available East Coast heated-storage assets as market participants position for the IMO fuel specification implementation on January 1, 2020."

As of September 30, 2019, the Partnership had approximately $264.8 million of liquidity, including approximately $52.6 million in cash and cash equivalents, and access to approximately $212.2 million under its revolving credit facility.

Commencement of production and storage of 0.5% sulphur fuel on the U.S. East Coast

On February 14, 2019, PBF Logistics announced an agreement with A.P. Moller - Maersk ("Maersk") to source and PBFX to process crude oil at CPI Operations LLC, a PBF Logistics LP terminal facility ("East Coast Storage assets") in New Jersey, United States. The processing and storage arrangement is underway.  The facility is currently processing feedstocks and providing products per the arrangement.

The agreement enables Maersk Oil Trading to supply IMO 2020-compliant 0.5% marine fuel to its customers on the US East Coast. Annual production will be around 1.25 million metric tonnes (mt), the equivalent of approximately 10% of A.P. Moller - Maersk's annual fuel demand.

PBF Logistics Announces Increased Quarterly Distribution

The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.52 per common unit. The distribution is payable on November 26, 2019, to unitholders of record at the close of business on November 14, 2019.

This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

Non-GAAP Financial Measures

The Partnership defines EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions. The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. The Partnership defines distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").

EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are non-GAAP supplemental financial measures that management and external users of the Partnership's condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

  • the Partnership's operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
  • the ability of the Partnership's assets to generate sufficient cash flow to make distributions to the Partnership's unitholders;
  • the Partnership's ability to incur and service debt and fund capital expenditures; and
  • the viability of acquisitions and other capital expenditure projects and the economic returns on various investment opportunities.

The Partnership believes that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing the Partnership's financial condition and results of operations and assists in evaluating the Partnership's ongoing operating performance for current and comparative periods. The Partnership believes that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and provides investors with another perspective of the operating performance of the Partnership's assets and the cash the Partnership's business is generating. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. Additionally, because EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow may be defined differently by other companies in the Partnership's industry, the Partnership's definitions of such measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

Conference Call Information

The Partnership will host a conference call and webcast regarding third quarter results and other business matters on Thursday, October 31, 2019, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 831-8713 or (203) 518-9822, conference ID: PBFXQ319. The audio replay will be available two hours after the end of the call through November 14, 2019, by dialing (800) 723-8184 or (402) 220-2668.

Forward-Looking Statements

This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate any pending acquisitions, the Partnership's plans for financing any pending acquisitions, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.

PBF Logistics LP

PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.



Results of Operations (Unaudited)

Factors Affecting Comparability

The following tables present our results of operations, related operational information and reconciliations of net income and net cash provided by operating activities to EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow (all as defined below) of PBFX for the three and nine months ended September 30, 2019 and 2018. The financial information presented contains the financial results of PBFX and the Development Assets (as defined below) prior to the Development Assets Acquisition (as defined below) on July 31, 2018.

On April 24, 2019, we entered into a Contribution Agreement with PBF Energy Company LLC ("PBF LLC"), pursuant to which PBF LLC contributed to us all of the issued and outstanding limited liability company interests of TVP Holding Company LLC ("TVP Holding"), which held the remaining 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), for total consideration of $200.0 million (the "TVPC Acquisition"). Subsequent to the closing of the TVPC Acquisition on May 31, 2019, we own 100% of the equity interest in TVPC, and we no longer record a noncontrolling interest related to our ownership of TVPC.

On February 28, 2019, we closed on the transaction contemplated by the Equity Restructuring Agreement with PBF LLC and PBF Logistics GP, our general partner, pursuant to which PBFX's incentive distribution rights ("IDRs") held by PBF LLC were canceled and converted into 10,000,000 newly issued PBFX common units (the "IDR Restructuring"). Subsequent to the closing of the IDR Restructuring, no distributions were made to PBF LLC with respect to the IDRs, and the newly issued PBFX common units are entitled to normal distributions.

On October 1, 2018, we acquired Crown Point International LLC's wholly-owned subsidiary, CPI Operations LLC (the "East Coast Storage Assets Acquisition"), whose assets include a storage facility with approximately four million barrels of multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and certain other idled assets located on the Delaware River near Paulsboro, New Jersey (collectively, the "East Coast Storage Assets"). Additionally, the East Coast Storage Assets Acquisition includes an earn-out provision related to an existing commercial agreement with a third party, based on the results of restarting certain of the acquired idled assets, which recommenced operations on October 25, 2019.

On July 31, 2018, we acquired from PBF LLC all of the issued and outstanding limited liability company interests of: Toledo Rail Logistics Company LLC, whose assets consist of a loading and unloading rail facility located at PBF Holding Company LLC's ("PBF Holding") Toledo Refinery (the "Toledo Rail Products Facility"); Chalmette Logistics Company LLC, whose assets consist of a truck loading rack facility (the "Chalmette Truck Rack") and a rail yard facility (the "Chalmette Rosin Yard"), both of which are located at PBF Holding's Chalmette Refinery; Paulsboro Terminaling Company LLC, whose assets consist of a lube oil terminal facility located at PBF Holding's Paulsboro Refinery (the "Paulsboro Lube Oil Terminal"); and DCR Storage and Loading Company LLC, whose assets consist of an ethanol storage facility located at PBF Holding's Delaware City Refinery (the "Delaware Ethanol Storage Facility" and collectively with the Toledo Rail Products Facility, the Chalmette Truck Rack, the Chalmette Rosin Yard, and the Paulsboro Lube Oil Terminal, the "Development Assets") (the "Development Assets Acquisition"). In connection with the Development Assets Acquisition, we entered into various commercial agreements with PBF Holding and assumed an existing commercial agreement with a third party.

On April 16, 2018, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), completed the purchase of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial Pipeline Company and Plantation Pipe Line Company pipeline systems and truck loading facilities (the "Knoxville Terminals") from Cummins Terminals, Inc. (the "Knoxville Terminals Purchase").

The Development Assets Acquisition was a transfer between entities under common control. Accordingly, our financial information contained herein has been retrospectively adjusted to include the historical results of the Development Assets as if they were owned by us for all periods presented. The results of the Development Assets are included in the Transportation and Terminaling segment.

As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.

Non-GAAP Financial Measures

We define EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is calculated by dividing distributable cash flow by our total distribution declared. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").

While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

  • our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
  • the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
  • our ability to incur and service debt and fund capital expenditures; and
  • the viability of acquisitions and other capital expenditure projects and the economic returns on various investment opportunities.

We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.

EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.

These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.

 



PBF LOGISTICS LP

EARNINGS RELEASE TABLES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except unit and per unit data)









Three Months Ended

September 30,



Nine Months Ended

September 30,

2019



2018



2019



2018

Revenue (a):

















Affiliate

$

78,026





$

66,140





$

224,014





$

190,789





Third-party

8,351





4,416





23,958





12,606



Total revenue

86,377





70,556





247,972





203,395



















Costs and expenses:

















Operating and maintenance expenses (a)

28,356





20,803





86,825





61,407





General and administrative expenses

4,552





4,725





18,142





15,504





Depreciation and amortization

9,079





7,451





26,654





21,185



Total costs and expenses

41,987





32,979





131,621





98,096



















Income from operations

44,390





37,577





116,351





105,299



















Other expense:

















Interest expense, net

(12,230)





(10,070)





(34,359)





(29,684)





Amortization of loan fees and debt premium

(444)





(497)





(1,339)





(1,256)





Accretion on discounted liabilities

(722)









(2,255)







Net income

30,994





27,010





78,398





74,359





Less: Net loss attributable to Predecessor





(80)









(2,443)





Less: Net income attributable to noncontrolling interest (g)





4,725





7,881





13,110



Net income attributable to the partners

30,994





22,365





70,517





63,692





Less: Net income attributable to the IDR holder (h)





3,641









10,011



Net income attributable to PBF Logistics LP unitholders

$

30,994





$

18,724





$

70,517





$

53,681



















Net income per limited partner unit (i):

















Common units - basic

$

0.50





$

0.42





$

1.23





$

1.25





Common units - diluted

0.50





0.42





1.23





1.25



















Weighted-average limited partner units outstanding (i):

















Common units - basic

62,361,974





44,518,365





57,314,382





42,965,502





Common units - diluted

62,460,669





44,612,522





57,385,166





43,015,817





















Cash distribution declared per unit (e)

$

0.5200





$

0.5000





$

1.5450





$

1.4850



















See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION

(Unaudited, amounts in thousands except as indicated)

























Three Months Ended

September 30,



Nine Months Ended

September 30,





2019



2018



2019



2018

Transportation and Terminaling Segment



















Terminals



















Total throughput (barrels per day ("bpd")) (b)(d)





334,340



299,757



287,027



290,076

Lease tank capacity (average lease capacity barrels per

month) (d)





2,088,044



1,713,988



2,229,890



1,970,347

Pipelines



















Total throughput (bpd) (b)(d)





165,757



166,275



158,307



162,027

Lease tank capacity (average lease capacity barrels per

month) (d)



1,388,849



1,548,747



1,355,645



1,553,509





















Storage Segment



















Storage capacity reserved (average shell capacity barrels per

month) (d)



8,033,679



4,138,709



8,006,785



4,343,379

















Cash Flow Information:















Net cash provided by (used in):















   Operating activities

$               39,757



$               52,255



$               95,643



$             117,582

   Investing activities

(8,028)



(20,956)



(23,180)



(86,627)

   Financing activities

849



(32,958)



(39,793)



(32,597)

      Net change in cash

$               32,578



$               (1,659)



$               32,670



$               (1,642)

















Other Financial Information:















   EBITDA attributable to PBFX (c)

$               53,469



$               38,934



$             132,825



$             111,321

   Adjusted EBITDA (c)

$               55,451



$               40,818



$             146,744



$             117,854

   Distributable cash flow (c)

$               39,538



$               28,545



$               99,074



$               82,891

   Quarterly distribution declared per unit (e)

$               0.5200



$               0.5000



$               1.5450



$               1.4850

   Distributions (e):















      Common units

$               32,709



$               23,028



$               97,188



$               66,792

       IDR holder - PBF LLC (h)



3,641





10,011

          Total distributions

$               32,709



$               26,669



$               97,188



$               76,803

          Coverage ratio (c)

 1.21x 



 1.07x 



 1.02x 



 1.08x 

   Capital expenditures, including acquisitions

$                 8,028



$               20,956



$               23,180



$               86,627

















See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION (continued)

(Unaudited, in thousands)





September 30,



December 31,

Balance Sheet Information:



2019



2018

   Cash and cash equivalents (f)

$

52,578





$

19,908



   Property, plant and equipment, net

856,203





862,117



   Total assets

1,010,328





956,353



   Total debt (f)

801,663





673,324



   Total liabilities

903,193





763,163



   Partners' equity

107,135





23,718



   Noncontrolling interest (g)





169,472



   Total liabilities and equity

1,010,328





956,353











See Footnotes to Earnings Release Tables





















 

 



PBF LOGISTICS LP

EARNINGS RELEASE TABLES

RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP

TO EBITDA AND DISTRIBUTABLE CASH FLOW

(Unaudited, in thousands)

















Three Months Ended

September 30,



Nine Months Ended

September 30,

2019



2018



2019



2018

Reconciliation of net income to EBITDA and

distributable cash flow (c):

















 Net income

$

30,994





$

27,010





$

78,398





$

74,359







Interest expense, net

12,230





10,070





34,359





29,684







Amortization of loan fees and debt premium

444





497





1,339





1,256







Accretion on discounted liabilities

722









2,255











Depreciation and amortization

9,079





7,451





26,654





21,185





 EBITDA

53,469





45,028





143,005





126,484







Less: Predecessor EBITDA





(8)









(2,051)







Less: Noncontrolling interest EBITDA (g)





6,102





10,180





17,214





 EBITDA attributable to PBFX

53,469





38,934





132,825





111,321







Non-cash unit-based compensation expense

1,271





1,052





5,622





4,549







Cash interest

(12,334)





(10,112)





(34,760)





(29,741)







Maintenance capital expenditures attributable to PBFX

(2,868)





(1,329)





(4,613)





(3,238)





 Distributable cash flow

$

39,538





$

28,545





$

99,074





$

82,891



















Reconciliation of net cash provided by operating

activities to EBITDA and distributable cash flow (c):

















 Net cash provided by operating activities

$

39,757





$

52,255





$

95,643





$

117,582





Change in operating assets and liabilities

2,753





(16,245)





18,625





(16,233)







Interest expense, net

12,230





10,070





34,359





29,684







Non-cash unit-based compensation expense

(1,271)





(1,052)





(5,622)





(4,549)





 EBITDA

53,469





45,028





143,005





126,484







Less: Predecessor EBITDA





(8)









(2,051)







Less: Noncontrolling interest EBITDA (g)





6,102





10,180





17,214





 EBITDA attributable to PBFX

53,469





38,934





132,825





111,321







Non-cash unit-based compensation expense

1,271





1,052





5,622





4,549







Cash interest

(12,334)





(10,112)





(34,760)





(29,741)







Maintenance capital expenditures attributable to PBFX

(2,868)





(1,329)





(4,613)





(3,238)





 Distributable cash flow

$

39,538





$

28,545





$

99,074





$

82,891



















See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP

TO EBITDA AND ADJUSTED EBITDA

(Unaudited, in thousands)

















Three Months Ended

September 30,



Nine Months Ended

September 30,

2019



2018



2019



2018

Reconciliation of net income to EBITDA and Adjusted

EBITDA (c):

















 Net income

$

30,994





$

27,010





$

78,398





$

74,359







Interest expense, net

12,230





10,070





34,359





29,684







Amortization of loan fees and debt premium

444





497





1,339





1,256







Accretion on discounted liabilities

722









2,255











Depreciation and amortization

9,079





7,451





26,654





21,185





 EBITDA

53,469





45,028





143,005





126,484







Less: Predecessor EBITDA





(8)









(2,051)







Less: Noncontrolling interest EBITDA (g)





6,102





10,180





17,214





 EBITDA attributable to PBFX

53,469





38,934





132,825





111,321







Acquisition and transaction costs

281





832





3,389





1,984







Non-cash unit-based compensation expense

1,271





1,052





5,622





4,549







East Coast Terminals environmental remediation costs

430









4,026











PNGPC tariff true-up adjustment









882









Adjusted EBITDA

$

55,451





$

40,818





$

146,744





$

117,854



















See Footnotes to Earnings Release Tables

 

 



PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION

(Unaudited, in thousands)























Three Months Ended September 30, 2019





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue (a)



$

73,269





$

13,108





$





$

86,377



Depreciation and amortization



7,051





2,028









9,079



Income (loss) from operations



43,596





5,346





(4,552)





44,390



Interest expense, net, amortization of loan

fees and debt premium and accretion on

discounted liabilities











13,396





13,396



Capital expenditures



2,781





5,247









8,028

























Three Months Ended September 30, 2018





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue (a)



$

64,011





$

6,545





$





$

70,556



Depreciation and amortization



6,524





927









7,451



Income (loss) from operations



38,599





3,703





(4,725)





37,577



Interest expense, net and amortization of

loan fees and debt premium











10,567





10,567



Capital expenditures



20,199





757









20,956

























Nine Months Ended September 30, 2019





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue (a)



$

208,884





$

39,088





$





$

247,972



Depreciation and amortization



20,831





5,823









26,654



Income (loss) from operations



120,676





13,817





(18,142)





116,351



Interest expense, net, amortization of loan

fees and debt premium and accretion on

discounted liabilities











37,953





37,953



Capital expenditures



15,014





8,166









23,180

























Nine Months Ended September 30, 2018





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue (a)



$

182,815





$

20,580





$





$

203,395



Depreciation and amortization



18,408





2,777









21,185



Income (loss) from operations



109,059





11,744





(15,504)





105,299



Interest expense, net and amortization of

loan fees and debt premium











30,940





30,940



Capital expenditures, including the

Knoxville Terminals Purchase



85,782





845









86,627





















See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION (continued)

(Unaudited, in thousands)























Balance at September 30, 2019





Transportation

and

Terminaling



Storage



Corporate



Consolidated Total

Total assets



$

735,489





$

225,921





$

48,918





$

1,010,328

























Balance at December 31, 2018





Transportation

and

Terminaling



Storage



Corporate



Consolidated Total

Total assets



$

731,505





$

219,326





$

5,522





$

956,353





















See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

FOOTNOTES TO EARNINGS RELEASE TABLES

(Unaudited, in thousands, except per unit data)

























(a)



See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below:



Revenue - On May 31, 2019, we closed the TVPC Acquisition in which we acquired the remaining 50% equity interest in TVPC. As such, we now own 100% of the equity interest in TVPC and no longer record a noncontrolling interest related to our ownership of TVPC.                                                                .

 

On October 1, 2018, we closed the East Coast Storage Assets Acquisition, which was accounted for as a business combination. As such, there was no revenue associated with the East Coast Storage Assets prior to our acquisition.

 

On July 31, 2018, we closed the Development Assets Acquisition with PBF LLC. Commercial agreements with PBF Holding for the Development Assets commenced subsequent to our acquisition, with the exception of an existing commercial agreement associated with the Paulsboro Lube Oil Terminal.                                            . 

 

On April 16, 2018, our wholly-owned subsidiary, PLPT, closed the Knoxville Terminals Purchase, which was accounted for as a business combination. As such, there was no revenue associated with the Knoxville Terminals prior to our acquisition.

 

Operating and maintenance expenses - As a result of our acquisitions and the completion of certain organic growth projects, our operating expenses are not comparative to prior periods due to expenses associated with these assets.

























(b)



Calculated as the sum of the average throughput per day for each asset group for the periods presented.

























(c)



See "Non-GAAP Financial Measures" on page 5 for definitions of EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA, distributable cash flow and coverage ratio.

























(d)



Operating information reflects activity subsequent to our acquisitions, the execution of the commercial agreements with PBF Holding and the completion of certain organic growth projects.







(e)



On October 31, 2019, we announced a quarterly cash distribution of $0.5200 per limited partner unit based on the results of the third quarter of 2019. The distribution is payable on November 26, 2019 to PBFX unitholders of record at the close of business on November 14, 2019. The total distribution amounts include the expected distributions to be made related to third quarter earnings.







(f)



Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is also useful to investors since we have the ability to, and may decide to, use a portion of our cash and cash equivalents to retire or pay down our debt. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of September 30, 2019 and December 31, 2018 was $749,085 and $653,416, respectively.

























(g)



Prior to the TVPC Acquisition, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), held a 50% controlling equity interest in TVPC, with the other 50% equity interest in TVPC owned by TVP Holding, a subsidiary of PBF Holding. PBFX Op Co was the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidated the financial results of TVPC and recorded a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations included the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets included the portion of net assets of TVPC attributable to TVP Holding.

 

Subsequent to the TVPC Acquisition, we own 100% of the equity interest in TVPC and no longer record a noncontrolling interest related to TVPC.

























(h)



Subsequent to the closing of the IDR Restructuring, the IDRs were canceled and exchanged for 10,000,000 newly issued PBFX common units. No distributions were made to PBF LLC with respect to the IDRs for the three or nine months ended September 30, 2019, and the newly issued PBFX common units are entitled to normal distributions.







(i)



We base our calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period and the amount of available cash that has been, or will be, distributed to the limited partners and IDR holders (prior to the IDR Restructuring) for that reporting period.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-increases-quarterly-distribution-to-0-52-per-unit-and-announces-third-quarter-2019-earnings-results-300948963.html

SOURCE PBF Logistics LP

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