Exhibit 99.1
Contact: Donald H. Anderson, President/CEO
Randall J. Larson, Executive Vice President/CFO
303-626-8200
TRANSMONTAIGNE INC. ANNOUNCES RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005
AND SCHEDULES CONFERENCE CALL
Wednesday, November 9, 2005 | | Immediate Release |
Denver, Colorado—TransMontaigne Inc. (NYSE:TMG) today announced its fiscal first quarter net income of $20.9 million ($.41 per share) compared with net income of $3.8 million ($.08 per share) for the comparable quarter in 2004. The first fiscal quarter highlights include:
• Supply, distribution and marketing revenues of $3.0 billion generating $48.6 million in net operating margins compared to $24.2 million for the comparable quarter in 2004.
• Light oil margins (deficiencies) were $(7.6) million compared to $4.5 million for the comparable quarter in 2004.
• Radcliff/Economy Marine Services (“Radcliff”) acquired August 1, 2005, contributed $2.2 million of net operating margins to this segment.
• Terminal, pipelines, and tugs and barges revenues of $29.2 million generating $10.5 million in net operating margins compared to $12.1 million for the comparable quarter in 2004.
• Radcliff contributed $.4 million of net operating margins to this segment.
• Selling general and administrative expenses increased by $1.1 million compared to last year with Radcliff accounting for $.5 million of that increase.
Donald H. Anderson, Chief Executive Officer said, “Light oil margins were negatively impacted by price disparities in the product supply market caused by Hurricanes Katrina and Rita. Our inventory valuations on a per gallon basis were significantly higher at September 30, as compared to June 30. This increase, roughly $.50 per gallon, contributed significantly to the supply, distribution and marketing operating margins. As the refineries and pipelines returned to normal operations in early October, both the pricing disparity and the increased inventory valuations dissipated. Hurricanes Katrina, Rita and most recently Wilma disrupted many of our operating facilities throughout Alabama, Mississippi and Florida but fortunately, we are currently not aware of any significant long-term damage to any of these facilities.”
CONFERENCE CALL
TransMontaigne Inc. also announced that it has scheduled a conference call for Thursday, November 10, 2005 at 3:00 p.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:
(877) 777-1967
A playback of the conference call will be available from 6:30 p.m. (MST) on Thursday, November 10, 2005 until 11:59 p.m. (MST) on Thursday, November 17, 2005 by calling:
USA: 800-475-6701
International: 320-365-3844
Access Code: 802394
The following selected financial information is extracted from the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2005, which was filed today with the Securities and Exchange Commission.
TRANSMONTAIGNE INC. AND SUBSIDIARIES
(000s, except per share data)
| | Three Months Ended | |
| | September 30,
2005 | | September 30,
2004 | |
Income Statement Data | | | | | |
Revenues | | $ | 2,983,361 | | $ | 2,055,724 | |
Net operating margins: | | | | | |
Supply, distribution and marketing | | 48,619 | | 24,156 | |
Terminals, pipelines, and tugs and barges | | 10,529 | | 12,065 | |
Operating income | | 42,131 | | 16,382 | |
Earnings before income taxes | | 36,597 | | 6,381 | |
Net earnings | | 20,883 | | 3,828 | |
Net earnings attributable to common stockholders | | 19,170 | | 2,982 | |
Net earnings per common share—basic | | $ | 0.41 | | $ | 0.08 | |
| | | | | |
Cash Flow Activities | | | | | |
Net cash provided by (used in) operating activities | | $ | (36,535 | ) | $ | (3,424 | ) |
Net cash provided by (used in) investing activities | | (60,165 | ) | (12,390 | ) |
Net cash provided by (used in) financing activities | | 72,147 | | 22,758 | |
| | | | | |
| | September 30,
2005 | | June 30,
2005 | |
Balance Sheet Data | | | | | |
Working capital | | $ | 315,373 | | $ | 319,636 | |
Long-term debt | | 231,000 | | 228,307 | |
Non-controlling interests in TransMontaigne Partners | | 82,601 | | 81,440 | |
Series B redeemable convertible preferred stock | | 20,826 | | 49,249 | |
Common stockholders’ equity | | 376,410 | | 326,484 | |
Selected income statement data for the three months ended September 30, 2005 and 2004, is as follows:
| | Three Months Ended | |
| | September 30,
2005 | | September 30,
2004 | |
Terminals, pipelines, tugs and barges: | | | | | |
TransMontaigne Partners L.P. facilities | | $ | 6,564 | | $ | 4,306 | |
Brownsville facilities | | 1,397 | | 850 | |
Southeast facilities | | 3,292 | | 5,011 | |
River facilities | | 41 | | 651 | |
Other | | (765 | ) | 1,247 | |
Margins | | 10,529 | | 12,065 | |
Marketing: | | | | | |
Light oils—marketing margins: | | | | | |
TransMontaigne Partners L.P. facilities | | 7,030 | | 2,700 | |
Southeast facilities | | (16,714 | ) | 993 | |
River facilities | | 1,024 | | 759 | |
Other | | 1,080 | | 36 | |
Light oil margins | | (7,580 | ) | 4,488 | |
Heavy oils—marketing margins | | 3,460 | | 2,570 | |
Supply chain management services margins | | 1,180 | | 3,040 | |
Margins | | (2,940 | ) | 10,098 | |
Total margins | | 7,589 | | 22,163 | |
Selling, general and administrative expenses | | (11,554 | ) | (10,433 | ) |
Total margins less S, G & A expenses | | (3,965 | ) | 11,730 | |
| | | | | |
Inventory procurement and management: | | | | | |
Increase in value of light oil volumes nominated under the MSCG product supply agreement prior to receipt of the product at our terminals | | 79,084 | | — | |
Increase in value of base operating inventory | | 46,424 | | 39,956 | |
Losses from risk management of base operating inventory and light oil volumes nominated under the MSCG product supply agreement | | (28,755 | ) | — | |
Storage fees for light oil tank capacity | | (457 | ) | (2,245 | ) |
Other financial and costing variances, net | | (28,654 | ) | (2,204 | ) |
Trading activities, net | | — | | (1,003 | ) |
Inventory procurement and management | | 67,642 | | 34,504 | |
| | | | | |
Inventory adjustments: | | | | | |
Gains recognized on beginning inventories—discretionary volumes | | 2,369 | | 3,712 | |
Gains deferred on ending inventories—discretionary volumes | | (18,452 | ) | (24,158 | ) |
Inventory adjustments | | (16,083 | ) | (20,446 | ) |
| | | | | |
Depreciation and amortization | | (6,581 | ) | (5,807 | ) |
Gain (loss) on disposition of assets, net | | 1,118 | | (3,599 | ) |
Operating income | | $ | 42,131 | | $ | 16,382 | |
Selected income statement data for each of the quarters in the year ended June 30, 2005, is summarized below (in thousands):
| | Three Months Ended | | Year | |
| | September 30,
2004 | | December 31,
2004 | | March 31,
2005 | | June 30,
2005 | | Ended
June 30, 2005 | |
Terminals, pipelines, tugs and barges: | | | | | | | | | | | |
TransMontaigne Partners L.P. facilities | | $ | 4,306 | | $ | 4,313 | | $ | 5,655 | | $ | 5,977 | | $ | 20,251 | |
Brownsville facilities | | 850 | | 1,204 | | 1,230 | | 1,249 | | 4,533 | |
Southeast facilities | | 5,011 | | 5,798 | | 5,442 | | 4,254 | | 20,505 | |
River facilities | | 651 | | 302 | | 1,145 | | 747 | | 2,845 | |
Other | | 1,247 | | 451 | | 335 | | (184 | ) | 1,849 | |
Margins | | 12,065 | | 12,068 | | 13,807 | | 12,043 | | 49,983 | |
Marketing: | | | | | | | | | | | |
Light oils—marketing margins: | | | | | | | | | | | |
TransMontaigne Partners L.P. facilities | | 2,700 | | 4,246 | | 1,666 | | 1,322 | | 9,934 | |
Southeast facilities | | 993 | | 7,603 | | 2,744 | | 2,849 | | 14,189 | |
River facilities | | 759 | | 759 | | 525 | | 791 | | 2,834 | |
Other | | 36 | | 136 | | 60 | | 79 | | 311 | |
Light oil margins | | 4,488 | | 12,744 | | 4,995 | | 5,041 | | 27,268 | |
Heavy oils—marketing margins | | 2,570 | | 5,406 | | 2,980 | | 2,164 | | 13,120 | |
Supply chain management services margins | | 3,040 | | 3,608 | | 6,067 | | 783 | | 13,498 | |
Margins | | 10,098 | | 21,758 | | 14,042 | | 7,988 | | 53,886 | |
Total margins | | 22,163 | | 33,826 | | 27,849 | | 20,031 | | 103,869 | |
Selling, general and administrative expenses | | (10,433 | ) | (11,802 | ) | (9,885 | ) | (10,729 | ) | (42,849 | ) |
Total margins less S, G & A expenses | | 11,730 | | 22,024 | | 17,964 | | 9,302 | | 61,020 | |
| | | | | | | | | | | |
Inventory procurement and management: | | | | | | | | | | | |
Gains (losses) from risk management of light oil volumes to be liquidated upon commencement of MSCG product supply agreement | | — | | 9,618 | | (181 | ) | — | | 9,437 | |
Change in value of light oil volumes nominated under the MSCG product supply agreement prior to the receipt of product at our terminals | | — | | — | | 36,632 | | (9,497 | ) | 27,135 | |
Change in value of base operating inventory | | 39,956 | | (36,847 | ) | 39,871 | | (4,408 | ) | 38,572 | |
Gains (losses) from risk management of base operating inventory and light oil volumes nominated under the MSCG product supply agreement | | — | | — | | — | | 5,154 | | 5,154 | |
Storage fees for light oil tank capacity | | (2,245 | ) | (2,200 | ) | (857 | ) | (395 | ) | (5,697 | ) |
Other financial and costing variances, net | | (2,204 | ) | 12,232 | | 6,286 | | (4,241 | ) | 12,073 | |
Trading activities, net | | (1,003 | ) | 1,031 | | — | | — | | 28 | |
Inventory procurement and management | | 34,504 | | (16,166 | ) | 81,751 | | (13,387 | ) | 86,702 | |
| | | | | | | | | | | |
Inventory adjustments: | | | | | | | | | | | |
Gains recognized on beginning inventories—discretionary volumes | | 3,712 | | 24,158 | | 10,210 | | 21,530 | | 3,712 | |
Gains deferred on ending inventories—discretionary volumes | | (24,158 | ) | (10,210 | ) | (21,530 | ) | (2,369 | ) | (2,369 | ) |
Inventory adjustments | | (20,446 | ) | 13,948 | | (11,320 | ) | 19,161 | | 1,343 | |
| | | | | | | | | | | |
Depreciation and amortization | | (5,807 | ) | (5,727 | ) | (6,274 | ) | (6,407 | ) | (24,215 | ) |
Gain (loss) on disposition of assets, net | | (3,599 | ) | — | | 2,993 | | 735 | | 129 | |
Operating income | | $ | 16,382 | | $ | 14,079 | | $ | 85,114 | | $ | 9,404 | | $ | 124,979 | |
Selected income statement data for each of the quarters in the year ended June 30, 2004, is summarized below (in thousands):
| | Three Months Ended | | Year | |
| | September 30,
2003 | | December 31,
2003 | | March 31,
2004 | | June 30,
2004 | | Ended
June 30, 2004 | |
Terminals, pipelines, tugs and barges: | | | | | | | | | | | |
TransMontaigne Partners L.P. facilities | | $ | 4,875 | | $ | 4,941 | | $ | 4,923 | | $ | 4,885 | | $ | 19,624 | |
Brownsville facilities | | 617 | | 798 | | 861 | | 1,067 | | 3,343 | |
Southeast facilities | | 4,971 | | 4,805 | | 4,722 | | 3,848 | | 18,346 | |
River facilities | | 1,396 | | 965 | | 605 | | 585 | | 3,551 | |
Other | | 1,178 | | 2,160 | | 476 | | 429 | | 4,243 | |
Margins | | 13,037 | | 13,669 | | 11,587 | | 10,814 | | 49,107 | |
Marketing: | | | | | | | | | | | |
Light oils—marketing margins: | | | | | | | | | | | |
TransMontaigne Partners L.P. facilities | | $ | 803 | | $ | 958 | | $ | 3,548 | | $ | 5,137 | | $ | 10,446 | |
Southeast facilities | | (861 | ) | 2,670 | | 4,128 | | 3,100 | | 9,037 | |
River facilities | | 1,237 | | 828 | | 1,078 | | 2,025 | | 5,168 | |
Other | | 902 | | 1,234 | | 2,037 | | 1,656 | | 5,829 | |
Light oil margins | | 2,081 | | 5,690 | | 10,791 | | 11,918 | | 30,480 | |
Heavy oils—marketing margins | | 1,440 | | 3,424 | | 5,416 | | 3,376 | | 13,656 | |
Supply chain management services margins | | 2,351 | | 4,070 | | 2,783 | | (580 | ) | 8,624 | |
Margins | | 5,872 | | 13,184 | | 18,990 | | 14,714 | | 52,760 | |
Total margins | | 18,909 | | 26,853 | | 30,577 | | 25,528 | | 101,867 | |
Selling, general and administrative expenses | | (9,525 | ) | (10,157 | ) | (10,452 | ) | (7,398 | ) | (37,532 | ) |
Total margins less S, G & A expenses | | 9,384 | | 16,696 | | 20,125 | | 18,130 | | 64,335 | |
| | | | | | | | | | | |
Inventory procurement and management: | | | | | | | | | | | |
Change in value of base operating inventory | | (3,994 | ) | 12,573 | | 18,723 | | 3,303 | | 30,605 | |
Storage fees for light oil tank capacity | | (2,522 | ) | (2,495 | ) | (2,385 | ) | (2,309 | ) | (9,711 | ) |
Other financial and costing variances, net | | 6,133 | | 5,135 | | (2,067 | ) | (15,694 | ) | (6,493 | ) |
Trading activities, net | | 2,131 | | 457 | | (2,582 | ) | (829 | ) | (823 | ) |
Inventory procurement and management | | 1,748 | | 15,670 | | 11,689 | | (15,529 | ) | 13,578 | |
| | | | | | | | | | | |
Inventory adjustments: | | | | | | | | | | | |
Gains recognized on beginning inventories—discretionary volumes | | 10,176 | | 5,242 | | 24,984 | | 12,911 | | 10,176 | |
Gains deferred on ending inventories—discretionary volumes | | (5,242 | ) | (24,984 | ) | (12,911 | ) | (3,712 | ) | (3,712 | ) |
Inventory adjustments | | 4,934 | | (19,742 | ) | 12,073 | | 9,199 | | 6,464 | |
| | | | | | | | | | | |
Depreciation and amortization | | (5,537 | ) | (5,932 | ) | (5,738 | ) | (5,808 | ) | (23,015 | ) |
Lower of cost or market write-downs on product linefill and tank bottom volumes | | (32 | ) | (17 | ) | (11 | ) | — | | (60 | ) |
Gain (loss) on disposition of assets, net | | — | | (805 | ) | — | | (173 | ) | (978 | ) |
Operating income | | $ | 10,497 | | $ | 5,870 | | $ | 38,138 | | $ | 5,819 | | $ | 60,324 | |
Our light oil marketing volumes in average barrels per day for each of the quarters in the years ended June 30, 2006, 2005 and 2004 are as follows:
| | Three Months Ended | | Year | |
| | September 30,
2005 | | December 31,
2005 | | March 31,
2006 | | June 30,
2006 | | Ended
June 30, 2006 | |
Light oils—marketing volumes: | | | | | | | | | | | |
TransMontaigne Partners’ facilities | | 75,962 | | — | | — | | — | | 75,962 | |
Southeast facilities | | 137,586 | | — | | — | | — | | 137,586 | |
River facilities | | 10,592 | | — | | — | | — | | 10,592 | |
Other | | 24,688 | | — | | — | | — | | 24,688 | |
| | 248,828 | | — | | — | | — | | 248,828 | |
| | Three Months Ended | | Year | |
| | September 30,
2004 | | December 31,
2004 | | March 31,
2005 | | June 30,
2005 | | Ended
June 30, 2005 | |
Light oils—marketing volumes: | | | | | | | | | | | |
TransMontaigne Partners’ facilities | | 63,256 | | 59,565 | | 68,725 | | 72,297 | | 65,961 | |
Southeast facilities | | 142,928 | | 131,418 | | 143,751 | | 146,395 | | 141,123 | |
River facilities | | 9,800 | | 9,800 | | 7,091 | | 11,816 | | 9,627 | |
Other | | 38,104 | | 21,875 | | 19,901 | | 17,369 | | 24,312 | |
| | 254,088 | | 222,658 | | 239,468 | | 247,877 | | 241,023 | |
| | Three Months Ended | | Year | |
| | September 30,
2003 | | December 31,
2003 | | March 31,
2004 | | June 30,
2004 | | Ended
June 30, 2004 | |
Light oils—marketing volumes: | | | | | | | | | | | |
TransMontaigne Partners’ facilities | | 62,392 | | 65,456 | | 70,108 | | 71,117 | | 67,268 | |
Southeast facilities | | 161,070 | | 157,366 | | 164,297 | | 160,209 | | 160,736 | |
River facilities | | 22,498 | | 16,372 | | 16,072 | | 20,469 | | 18,853 | |
Other | | 54,459 | | 44,750 | | 50,367 | | 46,748 | | 49,081 | |
| | 300,419 | | 283,944 | | 300,844 | | 298,543 | | 295,938 | |
Our light oil marketing margins in points ($0.0001) per gallon for each of the quarters in the years ended June 30, 2006, 2005 and 2004 are as follows:
| | Three Months Ended | | Year | |
| | September 30,
2005 | | December 31,
2005 | | March 31,
2006 | | June 30,
2006 | | Ended
June 30, 2006 | |
Light oils—marketing margins: | | | | | | | | | | | |
TransMontaigne Partners’ facilities | | 240 | | — | | — | | — | | 240 | |
Southeast facilities | | (314 | ) | — | | — | | — | | (314 | ) |
River facilities | | 250 | | — | | — | | — | | 250 | |
Other | | 113 | | — | | — | | — | | 113 | |
All facilities—weighted average | | (79 | ) | — | | — | | — | | (79 | ) |
| | Three Months Ended | | Year | |
| | September 30,
2004 | | December 31,
2004 | | March 31,
2005 | | June 30,
2005 | | Ended
June 30, 2005 | |
Light oils—marketing margins: | | | | | | | | | | | |
TransMontaigne Partners’ facilities | | 110 | | 184 | | 64 | | 48 | | 98 | |
Southeast facilities | | 18 | | 150 | | 51 | | 51 | | 66 | |
River facilities | | 200 | | 200 | | 196 | | 175 | | 192 | |
Other | | 2 | | 16 | | 8 | | 12 | | 8 | |
All facilities—weighted average | | 46 | | 148 | | 55 | | 53 | | 74 | |
| | Three Months Ended | | Year | |
| | September 30,
2003 | | December 31,
2003 | | March 31,
2004 | | June 30,
2004 | | Ended
June 30, 2004 | |
Light oils—marketing margins: | | | | | | | | | | | |
TransMontaigne Partners’ facilities | | 33 | | 38 | | 132 | | 189 | | 101 | |
Southeast facilities | | (14 | ) | 44 | | 66 | | 51 | | 37 | |
River facilities | | 142 | | 131 | | 176 | | 259 | | 178 | |
Other | | 43 | | 71 | | 106 | | 93 | | 77 | |
All facilities—weighted average | | 18 | | 52 | | 95 | | 104 | | 67 | |
TransMontaigne Inc. is a refined petroleum products marketing and distribution company based in Denver, Colorado with operations in the United States, primarily in the Gulf Coast, Florida, East Coast and Midwest regions. The Company’s principal activities consist of (i) terminal, pipeline, tug and barge operations, (ii) marketing and distribution, (iii) supply chain management services and (iv) managing the activities of TransMontaigne Partners L.P. The Company’s customers include refiners, wholesalers, distributors, marketers, and industrial and commercial end-users of refined petroleum products. Corporate news and additional information about TransMontaigne Inc. is available on the Company’s web site: www.transmontaigne.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. This information may involve risks and uncertainties that could cause actual results to differ materially from the forward- looking statements. 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.
-END-
