UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported): March 13, 2017

 

ARC LOGISTICS PARTNERS LP

(Exact name of registrant as specified in its charter)

 

 

Delaware

(State or other jurisdiction of incorporation)

 

001-36168 36-4767846
(Commission File Number) (IRS Employer Identification No.)

 

725 Fifth Avenue, 19th Floor

New York, New York

10022
(Address of principal executive offices) (Zip Code)

 

 

(212) 993-1290

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

 

 

 

 
 

 

Item 2.02.Results of Operations and Financial Condition.

 

On March 13, 2017, Arc Logistics Partners LP, a Delaware limited partnership (the “Partnership”), issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2016. A copy of the press release is furnished with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

 

The information provided in this Item 2.02 (including the press release furnished as Exhibit 99.1) shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be incorporated by reference in any filing made by the Partnership pursuant to the Securities Act of 1933, as amended (the “Securities Act”), regardless of any general incorporation language in such filing except to the extent that such filing incorporates by reference any or all of such information by express reference thereto.

 

Item 7.01.Regulation FD Disclosure.

 

The information set forth under Item 2.02 of this Current Report on Form 8-K is incorporated in this Item 7.01 by reference.

 

The information provided in this Item 7.01 (including the press release furnished as Exhibit 99.1) shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act, nor shall it be incorporated by reference in any filing made by the Partnership pursuant to the Securities Act, except to the extent that such filing incorporates by reference any or all of such information by express reference thereto.

 

Item 9.01.Financial Statements and Exhibits.

 

(d)    Exhibits.

 

   Exhibit No.   Description
     
99.1   Press release of Arc Logistics Partners LP issued March 13, 2017.

 

 

 

 

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    ARC LOGISTICS PARTNERS LP
       
    By: ARC LOGISTICS GP LLC, its General Partner
       
Date:        March 13, 2017 By:  /s/ Bradley K. Oswald  
    Bradley K. Oswald  
    Senior Vice President, Chief Financial Officer and Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

EXHIBIT INDEX

 

 

   Exhibit No.   Description
     
99.1   Press release of Arc Logistics Partners LP issued March 13, 2017.

 

 

 

 

 

 

Exhibit 99.1

 

Arc Logistics Partners
http://arcxlp.com

 

 

Arc Logistics Partners LP Announces Fourth Quarter and Full Year 2016 Results

 

NEW YORK, March 13, 2017 (GLOBE NEWSWIRE) -- Arc Logistics Partners LP ("Arc Logistics" or the "Partnership"), a Delaware limited partnership (NYSE: ARCX) today reported its financial and operating results for the fourth quarter and fiscal year ended December 31, 2016.

 

During the fourth quarter of 2016, the Partnership accomplished the following:

 

·Realized throughput of 154.6 thousand barrels per day (“mbpd”)

·Reported revenues, net income and Adjusted EBITDA of $26.4 million, $4.1 million and $13.9 million, respectively
·Invested $2.8 million of expansion capital expenditures to support existing, new and future customer initiatives
·Generated cash flows from operating activities of $12.5 million and Distributable Cash Flow of $11.0 million
·Declared a quarterly cash distribution of $0.44 per unit for the fourth quarter ended December 31, 2016

 

For the full year ended December 31, 2016, the Partnership accomplished the following:

 

·Realized throughput of 158.4 mbpd

·Reported revenues, net income and Adjusted EBITDA of $105.4 million, $21.9 million and $56.7 million, respectively
·Generated cash flows from operating activities of $55.6 million and Distributable Cash Flow of $40.1 million

 

For additional information regarding the Partnership’s calculation of Adjusted EBITDA and Distributable Cash Flow, which are non-GAAP financial measures, and a reconciliation of net income to Adjusted EBITDA and cash flows from operating activities to Distributable Cash Flow, please see below in this release and the accompanying tables.

 

Fourth Quarter and Full Year 2016 Operational and Financial Results

 

The Partnership’s fourth quarter 2016 reported revenues, net income and Adjusted EBITDA of $26.4 million, $4.1 million and $13.9 million, respectively, which represents a 5% increase, a 6% increase and a 5% increase over the Partnership’s fourth quarter 2015 reported revenues, net income and Adjusted EBITDA, respectively. Operating income increased by approximately $0.7 million for the fourth quarter 2016 when compared to the fourth quarter 2015 operating income of $3.6 million, which increase was principally due to the following:

 

 
 

 

·Revenues increased by $1.4 million, or 5%, to $26.4 million as compared to $25.0 million. The year over year increase is related to the following: (i) a $0.6 million increase in minimum storage and throughput revenue related to the acquisition of the Pennsylvania terminals, the execution of new commercial agreements, amending existing commercial agreements and an increase in capacity under contract offset by previously announced rate reductions in the Gulf Coast terminals, (ii) $0.8 million increase in excess throughput and handling fees related to the acquisition of the Pennsylvania terminals, increased throughput fees associated with new customer agreements and contract amendments offset by reduced throughput activity and marine unloading activity at certain terminals and (iii) a less than $100,000 decrease in ancillary revenue
·Operating expenses increased by $0.7 million, or 9%, to $8.6 million as compared to $7.9 million. The $0.7 million increase in operating expenses is the result of (i) a $0.4 million increase in operating expenses related to the acquisition of the Pennsylvania terminals, (ii) $0.4 million increase of additive, contract labor and utility expenses due to incremental throughput activity offset, (iii) $0.2 million increase in general maintenance expense, (iv) a $0.2 million increase in property taxes partially offset by (i) a $0.2 million decrease in payroll due to a realignment and optimization of the Partnership’s workforce, (ii) a $0.3 million decrease in tank cleaning expenses and (iii) a less than $0.1 million decrease in general office expenses
·Selling, general and administrative expenses decreased by $2.1 million, or 35%, to $4.0 million as compared to $6.2 million. The decrease was related to (i) a $0.5 million decrease of employee compensation expense, (ii) a decrease in legal and professional fees of $1.1 million, and (iii) a decrease in diligence related expenses of $0.6 million partially offset by increased GP expense of $0.1 million
·Depreciation and amortization expense increased by $0.7 million, or 10%, to $8.0 million as compared to $7.3 million, which increase was principally due to the impact of the Pennsylvania terminals acquisition, the completion of the Joliet and Pawnee terminal acquisitions and the 2016 capital expenditures program which included expansion capital expenditures to upgrade the Brooklyn, Blakeley, Chickasaw, Mobile and Toledo terminals for customer expansion activities and incremental maintenance capital expenditures at the Blakeley, Brooklyn, Chickasaw and Mobile terminals
·Revaluation of the contingent consideration related to the Joliet terminal acquisition resulted in a non-cash loss of $1.3 million for the quarter ended December 31, 2016 and $1.0 million for the year ended December 31, 2016. The non-cash loss from the fair value changes in the contingent consideration in 2016 was primarily attributable to the changes in discount rates and changes to the Partnership’s estimate in assumed future throughput activity which affects the timing of related revenues.

 

As of December 31, 2016, the Partnership's storage capacity was approximately 7.8 million barrels, which represents a 0.9 million barrel, or 13%, increase when compared to its capacity at December 31, 2015. The increase in storage capacity is related to the acquisition of the Pennsylvania terminals, three newly constructed biodiesel tanks at the Pennsylvania terminals and a newly constructed tank at the Pawnee terminal.

 

 2 
 

 

The Partnership's throughput activity increased by 41.5 mbpd, or 37%, to 154.6 mbpd during the fourth quarter of 2016 compared to the fourth quarter of 2015. The 41.5 mbpd increase was due to the following: (i) a 24.7 mbpd increase in crude oil throughput, (ii) a 12.5 mbpd increase in gasoline and distillates throughput at the newly acquired Pennsylvania terminals, (iii) a 1.4 mbpd increase in distillate throughput at a number of the Partnership’s refined products terminals, (iv) a 4.2 mbpd increase in gasoline throughput at a number of the Partnership’s refined products terminals partially offset by a reduction in asphalt and industrial products throughput due to seasonality and timing of shipments.

 

For the year ended December 31, 2016, the Partnership reported net income of $21.9 million, an increase of $11.2 million over the full year 2015 net income of $10.7 million. For the full year 2016, the Partnership generated $56.7 million of Adjusted EBITDA, a 29% increase over the full year 2015 Adjusted EBITDA of $44.1 million. The Partnership’s throughput activity increased by 40.2 mbpd, or 34%, to 158.4 mpbd during the full year 2016 compared to full year 2015 throughput activity of 118.2 mbpd. The Partnership's revenues for the full year 2016 increased by $23.6 million to $105.4 million, or 29%, compared to the full year 2015 revenues of $81.8 million. The Partnership’s operating expenses for the full year 2016 increased by $4.8 million to $33.7 million, or 16%, compared to the full year 2015 operating expenses of $29.0 million.

 

In January 2017, the Partnership declared a quarterly cash distribution of $0.44 per unit, or $1.76 per unit on an annualized basis, for the period from October 1, 2016 through December 31, 2016. The fourth quarter distribution is in line with the fourth quarter 2015 cash distribution of $0.44 per unit. The distribution was paid on February 15, 2017 to unitholders of record on February 8, 2017.

 

In 2015, the Partnership completed its acquisition of the Joliet rail terminal, which included an earn-out payment obligation to the seller thereof. At December 31, 2016, the Partnership identified a material weakness in its internal control over financial reporting related to the revaluation of the earn-out obligation associated with business combinations. Specifically, the Partnership did not properly design and maintain controls to revalue, either on a quarterly or annual basis, the fair value of such earn-out obligation and record the related gain or loss in the fair value as an adjustment to earnings, as applicable. The material weakness resulted in a non-cash adjustment of approximately $1.0 million for the year ended December 31, 2016, and the revision of the interim financial statements for the periods ended March 31, 2016, June 30 2016 and September 30, 2016. Management has commenced designing and implementing additional internal controls as part of its remediation plans to address the material weakness in its internal control over financial reporting pertaining to the periodic revaluation of the earn-out obligation. If management fails to design and implement effective internal controls as part of its remediation plan, this control deficiency could result in a misstatement of the aforementioned account balances, which could result in a material misstatement to the Partnership’s annual or interim consolidated financial statements.

 

Although management has concluded that the errors resulting from the material weakness were not material to its previously issued 2016 interim unaudited financial statements, the Partnership will be revising such interim financial statements, and the financial results noted herein reflect such revision. The fair market value adjustment does not impact the Partnership’s Adjusted EBITDA, Distributable Cash Flow or near-term liquidity. Notwithstanding such material weakness and the revision to the 2016 interim unaudited financial statements, the Partnership has concluded that the unaudited consolidated financial statements included in the Form 10-Q filings for the periods ended March 31, 2016, June 30, 2016, and September 30, 2016 presented fairly, in all material respects, its financial position, results of operations and cash flows for the periods presented in conformity with GAAP.  

 

 3 
 

 

Conference Call

 

Arc Logistics will hold a conference call and webcast to discuss the fourth quarter 2016 financial results on March 13, 2017, at 5:00 p.m. Eastern. Interested parties may listen to the conference call by dialing (855) 433-0931. International callers may access the conference call by dialing (484) 756-4279. The call may also be accessed live over the internet by visiting the “Investor Relations” page of the Partnership’s website at www.arcxlp.com and will be available for replay for approximately one month.

 

Arc Logistics Partners LP Schedule K-1s Available

 

Arc Logistics has completed the 2016 tax packages for its unitholders, including Schedule K-1. The tax packages are available online and may be accessed via Arc Logistics' website at www.arcxlp.com under "Investors >> Tax Information". Arc Logistics has begun the process of mailing the Schedule K-1’s. For additional information, unitholders may also call Partner DataLink at (855) 280-3667 Monday through Friday from 8:00 a.m. – 5:00 p.m. Central or visit their website at https://www.partnerdatalink.com/ArcLogistics.

 

About Arc Logistics Partners LP

 

Arc Logistics is a fee-based, growth-oriented limited partnership that owns, operates, develops and acquires a diversified portfolio of complementary energy logistics assets. Arc Logistics is principally engaged in the terminalling, storage, throughput and transloading of petroleum products and other liquids. For more information, please visit www.arcxlp.com.

 

Forward-Looking Statements

 

Certain statements and information in this press release constitute “forward-looking statements.” Certain expressions including “believe,” “expect,” “intends,” or other similar expressions are intended to identify the Partnership’s current expectations, opinions, views or beliefs concerning future developments and their potential effect on the Partnership. While management believes that these forward-looking statements are reasonable when made, there can be no assurance that future developments affecting the Partnership will be those that it anticipates. The forward-looking statements involve significant risks and uncertainties (some of which are beyond the Partnership’s control) and assumptions that could cause actual results to differ materially from the Partnership’s historical experience and its present expectations or projections. Important factors that could cause actual results to differ materially from forward-looking statements include but are not limited to: (i) adverse economic, capital markets and political conditions; (ii) changes in the market place for the Partnership’s services; (iii) changes in supply and demand of crude oil and petroleum products; (iv) actions and performance of the Partnership’s customers, vendors or competitors; (v) changes in the cost of or availability of capital; (vi) unanticipated capital expenditures in connection with the construction, repair or replacement of the Partnership’s assets; (vii) operating hazards, unforeseen weather events or matters beyond the Partnership’s control; (viii) inability to consummate acquisitions, pending or otherwise, on acceptable terms and successfully integrate acquired businesses into the Partnership’s operations; (ix) effects of existing and future laws or governmental regulations; and (x) litigation. Additional information concerning these and other factors that could cause the Partnership’s actual results to differ from projected results can be found in the Partnership’s public periodic filings with the Securities and Exchange Commission (“SEC”), including the Partnership’s Annual Report on Form 10-K and any updates thereto in the Partnership’s subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Partnership undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

 

 4 
 

 

Non-GAAP Financial Measures

 

The Partnership defines Adjusted EBITDA as net income before interest expense, income taxes and depreciation and amortization expense, as further adjusted for other non-cash charges and other charges that are not reflective of its ongoing operations. Adjusted EBITDA is a non-GAAP financial measure that management and external users of the Partnership’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess (i) the performance of the Partnership’s assets without regard to the impact of financing methods, capital structure or historical cost basis of the Partnership’s assets; (ii) the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; (iii) the Partnership’s ability to make distributions; (iv) the Partnership’s ability to incur and service debt and fund capital expenditures; and (v) the Partnership’s ability to incur additional expenses. The Partnership believes that the presentation of Adjusted EBITDA provides useful information to investors in assessing its financial condition and results of operations.

 

The Partnership defines Distributable Cash Flow as Adjusted EBITDA less (i) cash interest expense paid; (ii) cash income taxes paid; (iii) maintenance capital expenditures paid; and (iv) equity earnings from the Partnership’s LNG Interest; plus (v) cash distributions from the LNG Interest. Distributable Cash Flow is a non-GAAP financial measure that management and external users of the Partnership’s consolidated financial statements may use to evaluate whether the Partnership is generating sufficient cash flow to support distributions to its unitholders as well as to measure the ability of the Partnership’s assets to generate cash sufficient to support its indebtedness and maintain its operations.

 

The GAAP measure most directly comparable to Adjusted EBITDA is net income and to Distributable Cash Flow is cash flows from operating activities. Neither Adjusted EBITDA nor Distributable Cash Flow should be considered an alternative to net income or cash flows from operating activities, respectively. Adjusted EBITDA and Distributable Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income. You should not consider Adjusted EBITDA or Distributable Cash Flow in isolation or as a substitute for analysis of the Partnership’s results as reported under GAAP. Additionally, because Adjusted EBITDA and Distributable Cash Flow may be defined differently by other companies in the Partnership’s industry, the Partnership’s definitions of Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. Please see the reconciliation of net income to Adjusted EBITDA and cash flows from operating activities to Distributable Cash Flow in the accompanying tables.

 

Investor Contact: 
IR@arcxlp.com
www.arcxlp.com
212-993-1290

 5 
 

 

ARC LOGISTICS PARTNERS LP

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except per unit amounts)

(Unaudited)

 

 

   Three Months Ended  Year Ended
   December 31,  December 31,
   2016  2015  2016  2015
Revenues:                    
Third-party customers  $22,855   $21,299   $92,342   $70,497 
Related parties   3,543    3,738    13,039    11,292 
    26,398    25,037    105,381    81,789 
Expenses:                    
Operating expenses   8,643    7,917    33,749    28,973 
Selling, general and administrative   2,727    4,922    12,895    17,891 
Selling, general and administrative - affiliate   1,322    1,261    5,288    4,729 
Depreciation   4,360    3,587    15,704    11,680 
Amortization   3,673    3,724    14,714    10,819 
Loss on revaluation of contingent consideration, net   1,345    -    1,043    - 
Total expenses   22,070    21,411    83,393    74,092 
Operating (loss) income   4,328    3,626    21,988    7,697 
Other income (expense):                    
Equity earnings from unconsolidated affiliate   2,413    2,520    9,852    10,030 
Other income   2    -    3    9 
Interest expense   (2,577)   (2,241)   (9,811)   (6,873)
Total other income (expenses), net   (162)   279    44    3,166 
(Loss) income before income taxes   4,166    3,905    22,032    10,863 
Income taxes   22    11    124    119 
Net (loss) income   4,144    3,894    21,908    10,744 
Net income attributable to non-controlling interests   (1,313)   (1,959)   (6,866)   (4,315)
Net (loss) income attributable to partners' capital   2,831    1,935    15,042    6,429 
Other comprehensive (loss) income   1,448    1,190    1,364    945 
Comprehensive (loss) income attributable to partners’ capital  $4,279   $3,125   $16,406   $7,374 
                     
Earnings (loss) per limited partner unit:                    
Common units (basic and diluted)  $0.22   $0.09   $0.83   $0.39 
Subordinated units (basic and diluted)  $(0.30)  $0.09   $0.47   $0.22 

 

 

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ARC LOGISTICS PARTNERS LP

CONSOLIDATED BALANCE SHEETS

(In thousands, except unit amounts)

(Unaudited)

 

   December 31,  December 31,
   2016  2015
Assets:          
Current assets:          
Cash and cash equivalents  $4,584   $5,870 
Trade accounts receivable   8,257    8,633 
Due from related parties   1,321    1,532 
Inventories   397    318 
Other current assets   2,060    1,162 
Total current assets   16,619    17,515 
Property, plant and equipment, net   395,511    380,671 
Investment in unconsolidated affiliate   75,716    74,399 
Intangible assets, net   117,716    132,121 
Goodwill   39,871    39,871 
Other assets   2,980    3,945 
Total assets  $648,413   $648,522 
Liabilities and partners' capital:          
Current liabilities:          
Accounts payable  $2,455   $4,085 
Accrued expenses   5,684    6,857 
Due to general partner   2,082    638 
Other liabilities   2,961    3,914 
Total current liabilities   13,182    15,494 
Credit facility   249,000    226,063 
Other non-current liabilities   19,805    21,745 
Total liabilities   281,987    263,302 
Commitments and contingencies          
Partners' capital:          
General partner interest   -    - 
Limited partners' interest          
Common units – (19,477,021 and 13,174,410 units issued and outstanding at December 31, 2016 and 2015, respectively)   282,228    213,281 
Subordinated units – (0 units and 6,081,081 issued and outstanding at December 31, 2016 and 2015, respectively)   -    85,371 
Non-controlling interests   81,541    85,275 
Accumulated other comprehensive income   2,657    1,293 
Total partners' capital   366,426    385,220 
Total liabilities and partners' capital  $648,413   $648,522 

 

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ARC LOGISTICS PARTNERS LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

   Year Ended
   December 31,
   2016  2015
Cash flow from operating activities:          
Net income  $21,908   $10,744 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:          
Depreciation   15,704    11,680 
Amortization   14,714    10,819 
Equity earnings from unconsolidated affiliate, net of distributions   (262)   (544)
Amortization of deferred financing costs   1,551    1,031 
Unit-based compensation   4,112    5,474 
Net loss on revaluation of contingent consideration   1,043    - 
Changes in operating assets and liabilities:          
Trade accounts receivable   376    (4,887)
Due from related parties   211    (631)
Inventories   84    (33)
Other current assets   (898)   64 
Accounts payable   (1,923)   1,248 
Accrued expenses   (366)   3,712 
Due to general partner   1,444    229 
Other liabilities   (2,063)   (1,474)
Net cash provided by operating activities   55,635    37,432 
Cash flows from investing activities:          
Capital expenditures   (24,348)   (13,150)
Investment in unconsolidated affiliate   -    (361)
Net cash paid for acquisitions   (8,000)   (260,332)
Net cash used in investing activities   (32,348)   (273,843)
Cash flows from financing activities:          
Distributions   (33,931)   (27,272)
Deferred financing costs   (586)   (3,239)
Repayments to credit facility   (7,313)   - 
Proceeds from credit facility   30,250    115,000 
Proceeds from equity offerings, net   -    72,026 
Equity contribution from non-controlling interests   -    86,960 
Payments of earn-out liability   (1,373)   (870)
Distributions paid to non-controlling interests   (10,600)   (6,000)
Distribution equivalent rights paid on unissued units   (1,020)   (923)
Net cash (used in) provided by financing activities   (24,573)   235,682 
Net increase in cash and cash equivalents   (1,286)   (729)
Cash and cash equivalents, beginning of period   5,870    6,599 
Cash and cash equivalents, end of period  $4,584   $5,870 

 

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ARC LOGISTICS PARTNERS LP

RECONCILIATION OF ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW

(In thousands, except operating data)

(Unaudited)

 

   Three Months Ended  Year Ended
   December 31,  December 31,
   2016  2015  2016  2015
             
Net Income Attributable to Partners' Capital  $2,831   $1,935   $15,042   $6,429 
Income taxes   24    11    124    119 
Interest expense   2,577    2,242    9,811    6,873 
Depreciation (a)   3,889    3,139    13,867    10,486 
Amortization (a)   3,055    3,109    12,247    9,175 
One-time non-recurring expenses (b)   30    1,424    646    5,044 
Non-cash unit-based compensation   591    1,303    4,119    5,488 
Non-cash loss on revaluation of contingent consideration, net (a),(c)   807    -    626    - 
Non-cash deferred rent expense (d)   65    72    262    462 
Adjusted EBITDA  $13,869   $13,235   $56,744   $44,076 
Cash interest expense   (2,349)   (1,977)   (8,950)   (6,112)
Cash income taxes   (24)   (11)   (124)   (119)
Maintenance capital expenditures   (364)   (2,194)   (7,350)   (6,168)
Equity earnings from the LNG Interest   (2,413)   (2,520)   (9,852)   (10,030)
Cash distributions received from the LNG Interest   2,271    2,477    9,590    9,486 
Distributable Cash Flow  $10,990   $9,010   $40,058   $31,133 
Maintenance capital expenditures   364    2,194    7,350    6,168 
Distributable cash flow attributable to non-controlling interests   3,058    3,024    11,586    7,153 
Changes in operating assets and liabilities   (2,040)   (4,008)   (3,135)   (1,772)
One-time non-recurring expenses (b)   (30)   (1,424)   (646)   (5,044)
Other non-cash adjustments   111    5    422    (206)
Net Cash Provided by Operating Activities  $12,453   $8,801   $55,635   $37,432 

_______________

 

(a)The loss on revaluation of contingent consideration, depreciation and amortization have been adjusted to remove the non-controlling interest portion related to the GE EFS affiliate’s ownership interest in Arc Terminals Joliet Holdings LLC.

 

(b)The one-time non-recurring expenses relate to amounts incurred as due diligence expenses from acquisitions and other infrequent or unusual expenses incurred.

 

(c)The non-cash loss on revaluation of contingent consideration is related to the earn-out obligations incurred as a part of the Joliet terminal acquisition.

 

(d)The non-cash deferred rent expense relates to the accounting treatment for the Portland terminal lease transaction termination fees.

 

 

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ARC LOGISTICS PARTNERS LP

SUPPLEMENTAL INFORMATION

(In thousands, except operating data)

(Unaudited)

 

   Three Months Ended  Year Ended
   December 31,  December 31,
   2016  2015  2016  2015
Selected Operating Data:                    
Storage capacity (bbls)   7,842,600    6,925,100    7,842,600    6,925,100 
Throughput (bpd)   154,618    113,099    158,445    118,244 
                     
Throughput Data (bpd):                    
Asphalts and industrial products   9,419    10,618    14,297    13,074 
Crude oil   80,338    55,676    78,443    56,604 
Distillates   20,592    14,243    21,268    16,919 
Gasoline   44,269    32,561    44,438    31,647 
Total Throughput   154,618    113,099    158,445    118,244 
                     
Revenue Summary:                    
Minimum storage & throughput services fees  $21,783   $21,190   $87,516   $67,485 
Excess throughput & handling fees   3,139    2,337    12,088    8,003 
Total storage & throughput fees   24,922    23,527    99,604    75,488 
Ancillary services fees   1,476    1,510    5,777    6,301 
Total revenue  $26,398   $25,037   $105,381   $81,789 
                     
Capital Expenditures:                    
Maintenance capital expenditures  $364   $2,194   $7,350   $6,168 
Growth capital expenditures   2,805    3,645    15,357    9,693 
Total capital expenditures  $3,169   $5,839   $22,707   $15,861 

 

 

 

 

 

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