Exhibit 99.1
Contact: | Randall J. Larson, President/CFO
Frederick W. Boutin, Senior Vice President/Treasurer
303-626-8200 |
TRANSMONTAIGNE PARTNERS L.P. ANNOUNCES RESULTS FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2007 AND SCHEDULES CONFERENCE CALL
Wednesday, November 7, 2007 | Immediate Release |
Denver, Colorado—TransMontaigne Partners L.P. (NYSE:TLP) today announced its results for the three months ended September 30, 2007. An overview of the financial performance for the three months ended September 30, 2007 as compared to the three months ended September 30, 2006 includes:
• Quarterly revenues increased to $20.7 million from $13.9 million due principally to:
• Revenues of approximately $6.1 million generated by the Brownsville and River facilities, which we acquired on December 29, 2006.
• Quarterly direct operating costs and expenses increased to $9.0 million from $6.5 million due principally to:
• Operating costs and expenses of approximately $2.3 million attributable to the operation of the Brownsville and River facilities.
• Quarterly operating income increased to $5.4 million from an operating loss of $(0.1) million due principally to:
• The contribution from the Brownsville and River facilities of approximately $2.0 million; and
• Decreased direct general and administrative expenses of approximately $3.5 million primarily due to the absence of approximately $3.3 million associated with the accelerated vesting of restricted units resulting from the acquisition of TransMontaigne Inc. by Morgan Stanley Capital Group Inc. on September 1, 2006.
• Quarterly net earnings increased to $5.2 million from a net loss of $(1.0) million.
• Adjusted operating surplus generated during the period was $8.0 million compared to cash distributions allocable to the period for those units outstanding during the period of $6.5 million.
• We declared a $0.50 per unit quarterly cash distribution for the period compared to the minimum quarterly cash distribution of $0.40 per unit.
Developments
On September 18, 2007, we signed a binding letter of intent with Rio Vista Energy Partners L.P. (“Rio Vista”) to acquire Rio Vista’s LPG terminal facility in Matamoros, Mexico; two pipelines, together with associated rights of way and easements, which run from Brownsville, Texas to Matamoros, Mexico; and a permit to distribute liquefied petroleum gas to Mexico’s state-owned petroleum company. The acquisition is expected to close prior to December 31, 2007.
We are currently in discussions with TransMontaigne Inc. to acquire its Southeast terminaling operations and anticipate closing the acquisition on or before December 31, 2007.
We plan to utilize our existing borrowing capacity under our Senior Secured Credit Facility to fund these acquisitions.
Upon consummation of the acquisition of Rio Vista’s LPG operations, the acquisition of TransMontaigne Inc.’s Southeast terminaling operations, and the expected performance of our existing operations, we anticipate increasing our quarterly cash distribution to unitholders by $0.05 per unit to $0.08 per unit. The increase in our quarterly cash distribution to unitholders would occur following the inclusion of the results from both acquisitions in our consolidated results of operations for a full calendar quarter.
CONFERENCE CALL
TransMontaigne Partners L.P. also announced that it has scheduled a conference call for Thursday, November 8, 2007 at 11:00 a.m. (MST) regarding the above information. Analysts, investors and other interested parties are invited to listen to management’s presentation of the company’s results and supplemental financial information by accessing the call as follows:
(800) 762-4717
Ask for:
TransMontaigne Partners
A playback of the conference call will be available from 2:30 p.m. (MST) on Thursday, November 8, 2007 until 11:59 p.m. (MST) on Thursday, November 15, 2007 by calling:
USA: (800) 475-6701
International: (320) 365-3844
Access Code: 892730
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The following selected financial information is extracted from the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, which was filed on November 7, 2007 with the Securities and Exchange Commission.
TRANSMONTAIGNE PARTNERS L.P. AND SUBSIDIARIES
(000s, except per share data)
| | Three Months Ended | |
| | September 30,
2007 | | September 30,
2006 | |
Income Statement Data | | | | | |
Revenues | | $ | 20,706 | | $ | 13,850 | |
Direct operating costs and expenses | | (8,954 | ) | (6,508 | ) |
Direct general and administrative expenses | | (288 | ) | (3,761 | ) |
Operating income (loss) | | 5,445 | | (108 | ) |
Net earnings (loss) | | 5,203 | | (1,045 | ) |
Net earnings (loss) allocable to limited partners | | 5,098 | | (1,431 | ) |
Net earnings (loss) per limited partner unit—basic | | 0.41 | | (0.20 | ) |
| | | | | |
Cash Flow Activities | | | | | |
Net cash provided by (used in) operating activities | | $ | 14,495 | | $ | (1,333 | ) |
Net cash (used in) investing activities | | (8,779 | ) | (676 | ) |
Net cash provided by (used in) financing activities | | (6,996 | ) | 670 | |
| | September 30,
2007 | | December 31,
2006 | |
Balance Sheet Data | | | | | |
Property, plant and equipment, net | | $ | 232,726 | | $ | 235,074 | |
Goodwill | | 23,235 | | 23,235 | |
Total assets | | 275,188 | | 271,361 | |
Long-term debt | | 2,750 | | 189,621 | |
Partners’ equity | | 263,883 | | 77,865 | |
| | | | | | | |
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Selected quarterly results of operations data for each of the quarters in the year ending December 31, 2007 and year ended December 31, 2006 are as follows (in thousands):
| | Three months ended | | Year ending December 31,
2007 | |
| | March 31,
2007 | | June 30,
2007 | | September 30,
2007 | | December 31,
2007 | | |
Revenues | | $ | 21,196 | | $ | 20,907 | | $ | 20,706 | | — | | $ | 62,809 | |
Direct operating costs and expenses | | (8,804 | ) | (9,762 | ) | (8,954 | ) | — | | (27,520 | ) |
Direct general and administrative expenses | | (893 | ) | (461 | ) | (288 | ) | — | | (1,642 | ) |
Allocated general and administrative expenses | | (1,725 | ) | (1,736 | ) | (1,758 | ) | — | | (5,219 | ) |
Allocated insurance expense | | (413 | ) | (412 | ) | (413 | ) | — | | (1,238 | ) |
Reimbursement of bonus awards | | — | | (375 | ) | (375 | ) | — | | (750 | ) |
Depreciation and amortization | | (2,990 | ) | (3,420 | ) | (3,473 | ) | — | | (9,883 | ) |
Operating income | | 6,371 | | 4,741 | | 5,445 | | — | | 16,557 | |
Other expense, net | | (3,912 | ) | (3,279 | ) | (242 | ) | — | | (7,433 | ) |
Net earnings | | $ | 2,459 | | $ | 1,462 | | $ | 5,203 | | — | | $ | 9,124 | |
| | Three months ended | | Year ended December 31,
2006 | |
| | March 31,
2006 | | June 30,
2006 | | September 30,
2006 | | December 31,
2006 | | |
Revenues | | $ | 12,090 | | $ | 11,563 | | $ | 13,850 | | $ | 19,282 | | $ | 56,785 | |
Direct operating costs and expenses | | (4,527 | ) | (5,647 | ) | (6,508 | ) | (9,509 | ) | (26,191 | ) |
Direct general and administrative expenses | | (1,100 | ) | (672 | ) | (3,761 | ) | (920 | ) | (6,453 | ) |
Allocated general and administrative expenses | | (812 | ) | (822 | ) | (1,135 | ) | (1,718 | ) | (4,487 | ) |
Allocated insurance expense | | (250 | ) | (250 | ) | (304 | ) | (411 | ) | (1,215 | ) |
Depreciation and amortization | | (1,942 | ) | (1,790 | ) | (2,250 | ) | (3,206 | ) | (9,188 | ) |
Operating income (loss) | | 3,459 | | 2,382 | | (108 | ) | 3,518 | | 9,251 | |
Other expense, net | | (740 | ) | (845 | ) | (937 | ) | (1,607 | ) | (4,129 | ) |
Net earnings (loss) | | $ | 2,719 | | $ | 1,537 | | $ | (1,045 | ) | $ | 1,911 | | $ | 5,122 | |
Note: Brownsville and River Terminals are included in our results of operations from September 1, 2006.
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TRANSMONTAIGNE PARTNERS L.P. AND SUBSIDIARIES
ADJUSTED OPERATING SURPLUS
During the subordination period, the common units will have the right to receive distributions in an amount equal to the minimum quarterly distribution of $0.40 per quarter, plus any arrearages in the payment of the minimum quarterly distribution on the common units, before any distributions will be made on the subordinated units. Conversions of subordinated units to common units will occur in the future only if, in addition to other requirements, we generate Adjusted Operating Surplus, as defined in the partnership agreement, equal to or greater than the minimum distribution requirement on all common units, subordinated units and the general partner interest. The following summarizes our Adjusted Operating Surplus generated during the periods indicated (in thousands):
| |
July 1, 2007
through
September 30,
2007
| |
January 1, 2007
through
September 30,
2007
| | January 1, 2006
through
December 31,
2006 | | May 27, 2005
through
December 31, 2005 | | Cumulative
since
inception | |
Net earnings | | $ | 5,203 | | $ | 9,124 | | $ | 3,267 | | $ | 7,640 | | $ | 20,031 | |
Depreciation and amortization | | 3,473 | | 9,883 | | 7,411 | | 3,785 | | 21,079 | |
Amortization and acceleration of deferred equity-based compensation | | 22 | | 44 | | 3,868 | | 371 | | 4,283 | |
Compensation expense on distributions paid to holders of restricted units | | — | | — | | 187 | | 66 | | 253 | |
Distributions paid to holders of restricted phantom units | | (5 | ) | (15 | ) | (50 | ) | — | | (65 | ) |
Cash reserved for repurchase of common units | | (28 | ) | (28 | ) | (1,700 | ) | — | | (1,728 | ) |
| | | | | | | | | | | |
Maintenance capital expenditures | | (618 | ) | (2,055 | ) | (1,422 | ) | (497 | ) | (3,974 | ) |
“Adjusted Operating Surplus” generated during the period (1) | | $ | 8,047 | | $ | 16,953 | | $ | 11,561 | | $ | 11,365 | | $ | 39,879 | |
| | | | | | | | | | | |
Actual distribution for the period of all common units, subordinated units and the general partner interest: | | | | | | | | | | | |
Distribution attributable to units outstanding during the period | | $ | 6,466 | | $ | 14,851 | | $ | 12,803 | | $ | 7,071 | | $ | 34,725 | |
Distribution payable on units issued in the secondary offering for the period prior to date of issuance | | — | | 1,614 | | — | | — | | 1,614 | |
| | $ | 6,466 | | $ | 16,465 | | $ | 12,803 | | $ | 7,071 | | $ | 36,339 | |
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| | July 1, 2007 through
September 30,
2007 | | January 1, 2007 through
September 30,
2007 | | January 1, 2006 through
December 31,
2006 | | May 27, 2005 through
December 31,
2005 | | Cumulative since inception | |
Minimum distribution for the period on all common units, subordinated units and the general partner interest: | | | | | | | | | | | |
Distribution attributable to units outstanding during the period | | $ | 5,079 | | $ | 11,892 | | $ | 11,905 | | $ | 7,071 | | $ | 30,868 | |
Distribution payable on units issued in the secondary offering for the period prior to date of issuance | | — | | 1,243 | | — | | — | | 1,243 | |
| | $ | 5,079 | | $ | 13,135 | | $ | 11,905 | | $ | 7,071 | | $ | 32,111 | |
(1) For purposes of this presentation, we have calculated Adjusted Operating Surplus in accordance with the terms of our partnership agreement. As a result, the difference between net earnings, depreciation and amortization, and maintenance capital expenditures for the periods presented above and such amounts presented in our historical financial statements prepared in accordance with generally accepted accounting principles represent the effects of including the Brownsville terminal, River facilities and Mobile terminal for the periods prior to their acquisition by us from TransMontaigne Inc. The net earnings, depreciation and amortization, and maintenance capital expenditures for the Brownsville terminal and River facilities for the period September 1, 2006 through December 31, 2006 are approximately (in thousands) $1,855, $1,777 and $374, respectively. The net earnings, depreciation and amortization, and maintenance capital expenditures for the Mobile terminal for the period August 1, 2005 through December 31, 2005 are approximately (in thousands) $472, $268, and $nil, respectively. The financial performance of these facilities for such periods is excluded from the computation of Adjusted Operation Surplus because it represents the financial performance of these facilities prior to the closing dates of our respective acquisitions from TransMontaigne Inc.
About TransMontaigne Partners L.P.
TransMontaigne Partners L.P. is a terminaling and transportation company based in Denver, Colorado with operations along the Gulf Coast, in Brownsville, Texas, along the Mississippi and Ohio Rivers, and in the Midwest. We provide integrated terminaling, storage, transportation and related services for companies engaged in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. Light refined products include gasolines, diesel fuels, heating oil and jet fuels; heavy refined products include residual fuel oils and asphalt. We do not purchase or market products that we handle or transport. News and additional information about TransMontaigne Partners L.P. is available on our website: www.transmontaignepartners.com.
Forward-Looking Statements
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Although the company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Important factors that could cause actual results to differ materially from the company’s expectations and may adversely affect its business and results of operations are disclosed in “Item 1A. Risk Factors” in the company’s
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Annual Report on Form 10-K for the year ended December 31, 2006, filed with the Securities and Exchange Commission on March 16, 2007, and in “Risk Factors” in the company’s Prospectus Supplement dated May 17, 2007 to the Prospectus dated May 10, 2007, as filed with the Securities and Exchange Commission on May 18, 2007 (Securities Act File No. 333-142108).
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