TLP - Earnings call transcript Q3 2018 | Transmontaigne Partners L.P.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the TransMontaigne Partners Third Quarter 2018 Financial Results Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host today, Michael Hammell, Executive Vice President. Please proceed.

Michael Hammell

Thank you, and thank everyone, for joining us today on the TransMontaigne Partners conference call. are remind include that predictions securities the considered statements to this made should litigation like safe forward-looking that the call partnership's that Reform would Act. all of statements listeners during be harbor I provisions by the covered expectations or which Important could section on including filings, in actual Risk Factors cause be results from report differ materially can SEC factors forward-looking the statements on XX-K, website company's our either that of Form annual at these or are our the to disclosed accessed in the SEC's www.transmontaignepartners.com. no update by obligation law. We revise undertake required except to any statements of these be to may as or this Please we financial to may be refer non-GAAP that advised the call morning, certain on measures.

to measure, GAAP directly quarter measures the our third For most please release. to a financial earnings of comparable refer reconciliation these

Finally, proposed announced, evaluating of common Conflicts Management Partners be independent comprised of to outstanding that will ArcLight of of acquire Committee, TransMontaigne as Capital publicly-held a is currently the The General Partner, Partners. is units of previously proposal. subsidiary which our all directors any turn or to Fred or With to Partners. TransMontaigne this Boutin, I Executive call. the like Q&A portion questions during over address on of morning's the comment that, now Officer of would evaluation the unable call process to proposal the Chief Mr.

Fred Boutin

during our third which revenue, I'm us. EBITDA totaled Good third Thank quarter, quarter our in pleased Fuller, of third with for We thank or quarter the was driven approximately the Officer; me of of and strong EBITDA Financial that terminals completed combined million joining record Also third XXXX. $XX.X our joining of distribution and This had approximately by the And represents over quarter. growth, continued Mark was which $X.XXX, able everyone, of primarily we well greater X.X% or over $XX.X distribution the X.XXx. year. quarter Commercial X.X% on strong XX% of flow. the million, Coast extremely XX% million, of provide and than were you, strength, business today quarter Huff, our compared by maintaining $X.XX levels perform for during to Head Operations. morning, Rob Chief quarterly December year-ago to to $XX.X distributable increase Michael. cash the the you previous revenue our million last growth achieving and call is of and while continued coverage announce outlook we this distribution supported increasing West XXXX. to an our $XX.X performance, a Growth which ratio of acquisition, President to

Since LP consecutive initial per quarter's a LP increase. distribution of distribution distribution our cushion since overall been increase and IPO, unit, distribution $X.XXX long-term quarter than our able We've provide stable total XXth of for a doubled milestone May $XX.XX more contracts. per our XXXX. public was its in the growth third excess quarterly we assets since The have XX%. distributed an and in offering strategic TLP quarterly because to fee-based of third now strong has distribution our with Paying our of was unit

executed significant Over acquisition. a organic and last multiple we on year, the investments successfully

short we expect our benefit bolt-on and continue our the we As and to platform extend opportunities term. additional long expand growth, over from to further

our customers Pipeline at of underpinned Colonial XXX,XXX to the for our includes an Phase of construction that offer flexibility receipt we delivery agreement construction long-term II with During contract which and significant significantly enhance also for improvements the at Collins. will a third of new quarter, project The we the all by is buildout customer continued Collins, storage to progress barrels capacity. the

diesel. exercise expect an first construction will of should tankage-related In new service Brownsville, in of improvements with placed of rest expansion Pipelines initial The $XX our to the Phase third in these propane affiliate announced by our Frontera of projects. during the we These the XXX% and this into gasoline expect Diamondback conversion total, joint fully we tanks $XX.X million owned month. PEMEX to projects the of venture to in Partners. declined manifold contracted right project. year. on next invest quarter, constructed of expensed be million, next its return and the As high these approximately to of approximately Accordingly, end we and In service of the of of to II previously our be the participate tanks portions second be TransMontaigne facilities projects and and from quarter involve

Our Diamondback Mexico. connect with in to into third-party new U.S. This where Brownsville avenue Pipelines customers they refined the run to will continue from that move products establish into border the for pipelines a from our Mexico. terminal

cost as of aggregate of which schedule $X.X is on The the projects $XX been budget. these has spent expect and XX. September We approximately million of on million, to work be about

these We projects in online phases expect throughout come XXXX. to

I'll terminal project Richmond, Coast, a prime and projects On construction at at our how we facilities. of will focus assets example is to over is XXX,XXX-barrel fully maximizing contracted across a Coast the West West turn on and This to the capital our And of review third call budget. other are schedule California efficiency. for on expansion with our we our on pursue performance continue our now the low-capital, high-return quarter. who terminals financial Rob, our similar

Rob Fuller

strong record Fred and Good morning, achieved revenues, of levels in EBITDA record levels flow everyone. the $XX.X to Thank we during terminals you, Fred. was prior Driving year. quarter revenue, million the our from this cash Of increase the was the third growth or distributable mentioned year. as which XXXX. acquired totaled West $XX.X increase, in compared of December Coast period $X.X last million same million these in an

This acquire the prior reflects approximately For was take-or-pay in highly-predictable terminaling expand and our and period. revenues. similar increase structures. capacity up XX% from we progression for under XX% our quarter, contracts firmly contract flows of generated base strategy year cash committed in provide contracts, terminaling the new terminal they revenue critical our approximately These our are as our our third to of further services from the terminals quality of durability as

contract remains from committed and flow Our with for half a services our years, from stability duration cash contracts or third adding revenues approximately attractive firmly generated remaining quarter our of the portfolio terminaling more stream. to perspective of the X also predictability of with commitments

sources, was million ratable to terminaling revenues representing of the of the generated an which our approximately recognize from third expenses customers $X.X Direct quarter, with the share $XX.X agreements, with inaugural an for affiliates, our approximately take-or-pay spend cash period. Because rental for million, the beginning $X several the $XXX,XXX quarter and of the of third the at quarter. attributable we increase totaled increase approximately the operating approximately a volumes year credit an the over purchase to of sources a remaining fees totaled pipeline from earnings from quarter requirements as such quarter third $X.X increase senior cash quarter base quarter our to X-year increases they in minimum that approximately under our is terminaling joint the of increase from approximately $XXX,XXX Frontera payment. million, these consistent fees approximately fees, and million for to event services. ancillary A the management $XXX million, $X is is our minimum throughput and totaled and primarily of of million, Earnings increase over of approximately each like Similar with approximately three, in year-over-year including: to which which from of prior Our distribution and rates factors, borrowings services last unconsolidated ventures year. requirements, approximately General actual in newly quarter. we revenues volumes usually make been expense then, $X for increase of expenses at decrease third million of generated an over a last of timing our $XXX $X.X TransMontaigne, operating Coast, of contracts, amounts. of million terminals; received these Interest issuance terminals associated payments Historically, revenue monthly with the third third month, increase Coast February associated was West million much represents for that take-or-pay this at expenses coupon; $X.X the are facility. year's maintenance less our The borrowing from BOSTCO contain prior year. customer, in administrative during quarter for acquired The on the two, venture's the the more our amount joint firmly revolving our than X/X% incurred attributable in committed bank the a million one, have of X revenue, in notes XX% third our distributions in BOSTCO. of receive product even operations, period. than fixed the contractual minimum totaled XXXX the West

quarter the period. with million, prior third year the reported consistent we of earnings For was net of which XXXX, $XX.X

representing However, we million quarter included $XX.X depreciation quarter the of third the to to an the third quarter increase is in amortization XX% which $XX.X expense, third in for million, XXXX. $X.X compared million charge of a results XXXX was EBITDA a earnings. the and reported increase approximately noncash

of us, $XX.X set for beating in first quarter $XX.X XXXX records record second than third quarters approximately more cash for million Our the EBITDA XXXX. is of quarter reported this year. quarter, $X.X which the million Distributable we've a for for the and third EBITDA totaled flow million was our quarterly previous the

for per combined our increase Our with by quarter our quarterly in distribution continued third an $X.XXX to outlook $X.XX solid performance strength the supported unit. in

of distribution in distributable quarter of $XX.X approximately resulted which for the quarter. of cash third cash flow million, compared X.XXx to represented Our $XX.X total coverage million, distributions distribution total

our With leverage $X.XXX reported decrease third cost XXXX, terminals XXXX we We the increased by have credit X.XXx which first leverage that for borrowings IIA from million unit, revolving been and distribution million X.XXx in have bank-approved three at Phase construction represented the a quarter XXXX. the acquisition our pro date, debt, the for of of $XXX while for year-to-date the quarter second the of $XXX facility. forma X.XXx, our third of incurred distribution with the Coast the the of of of approximately on quarter including For per amounts coverage quarters finished end we Collins XXXX. quarterly million steadily $XXX to maintaining West was

disclosed projects by call, which underway, underpinned have growth currently we several previously are Fred construction his long-term agreements. As on

million We spend through $XXX during end projects of expect approximately these year this the the to fourth quarter on XXXX. completing

Energy the facility General not questions process comprised on do of be we to that ArcLight of of need want Conflicts you is as is the We flows to operations to operations. independent announced on proposal proposed directors cash address on able this of all now or capital. the previously of revolving publicly-held or ready expect to other any to we open and questions our to Partners Partner, projects. the proposal. that that, With units this of finance results from The comment our currently of call. closing, year, I subsidiary Q&A call common partnership's July which are And evaluation management outstanding the portion Partners. TransMontaigne access not will remind accretive during evaluating In the the of the to and use business forms retained to in credit acquire capacity these a of Committee,

Operator

with first [Operator question comes your with Instructions] Please proceed Barrett question. Our Blaschke MUFG. from

Barrett Blaschke

faster slowly of is up bringing of I getting that Is the kept the good you've you know off this pace at while in sort now. any point? favor - been a distribution rate? to leverage it are back down there you've walking for at a Or growth issue an at pressure

Fred Boutin

That hasn't as really been an issue. brought up

retain we're not the off. be does in getting cash. more to anywhere So to to the from more That no, seem trend back pressure marketplace

assets cushion especially So projects year. go and you to next front the capacity increase the to start have going we've of $X.XXX are of plenty handle from but fact we consider that that early online these that when did we coming to of us, we - some and $X.XX, in the got have

anywhere from do we pressure really, on, no right just trying to So, do with the distribution. what the We're thing.

Barrett Blaschke

you rather than offer the that while simplification something taking like about that the shake Where full-on a on is do IDRs? across just pretty guys swept rather space. ArcLight, of much trend out idea doing the Also, I out can't obviously, know buyout, just, a than you talk has the from that,

Fred Boutin

that's got being because its a to That's really on table anything transaction TransMontaigne by not that into we've an going to would be the evaluated, Yes. issue need addressed could it's ArcLight And not really own. do so that on we're it. get

Operator

next Please with question Selman from [Operator Stifel. comes with proceed Akyol question. Our your Instructions]

Selman Akyol

that down your - going give you see phases on products of ballparks the comes you through in Can you're out project just kind terms of said you on can refined what In just coming when? border, some working it on XXXX.

Fred Boutin

talk want Mark, to you about that? do Sure.

Mark Huff

Sure. up It's make that the actually multiple full projects down there project.

comes on quarter. related the tankage facilities. first in It's The first and

the The on we third tankage. in And piece, That's frame. third pipeline August second to on And project. that's time of piece tankage, the the come the comes in time the quarter, fourth quarter period. additional expect conversion part late primarily

Selman Akyol

how you're tankage? dedicating you capital Can much the say to

Fred Boutin

we that? do have Rob, a breakdown of

Rob Fuller

tankage. on around all the right of million It's $XX Yes.

Fred Boutin

Yes. remainder. The pipeline portion is the

Selman Akyol

to go XX%, Can And I you believe, say up high previously. out? that you look how then, you XX% expect as talked you about from take-or-pay,

Rob Fuller

now, area, we to we given in we're the upcoming these say, in foresee it Rob. would where Yes. expect around Selman, Right I right is growth projects. contracts that remain at this

we've So your large portion It been bit of thing. be have a time, structure. we has number. It's nice revenue creeped a a to historically, same those around firmly think that amounts good committed little over always which up is

Selman Akyol

sort about from beyond the year then, just longer that, additional And talk can you this continue next guys of you bit go a leverage to I just broadly mean, a talk about can you those But think number invested year. And invest? you are mean, one are potentially get of where you about little are? if And but look me. million still I your and being is, if projects you seeing to term, what after? I seeing last opportunities $XXX

Fred Boutin

think in developments yes California. time. more on And there'll have developing be what we in certainly we're Collins, think for it there'll Well, Collins. but We now, development to parties mean, multiple future I continue we over with more that work Yes. be more we Brownsville. in in could contract be

we that So achieve is time, there over more time. yes, but be will it will growth think we over

Operator

this today's further and gentlemen, time. This queue teleconference. no are there at Ladies questions in concludes

You time. participation. you may this for disconnect your at thank And your lines

Transmontaigne Partners (TLP) 10 Nov 182018 Q3 Earnings call transcript