TransMontaigne Partners L.P. Announces Financial Results

For The Quarter Ended September 30, 2016

Denver, Colorado—TransMontaigne Partners L.P. (NYSE:TLP) (the Partnership, we, us, our) today announced third quarter 2016 financial and operating results.

The Partnership reported net earnings of $11.9 million, Consolidated EBITDA of $23.5 million and distributable cash  flow of $19.5 million for the third quarter of 2016, compared to net earnings of $7.7 million, Consolidated EBITDA of $23.3 million and distributable cash flow of $17.4 million for the third quarter of 2015.  We previously announced a quarterly cash distribution of $0.70 per unit for the three months ended September 30, 2016, an increase of $0.01 over the prior quarter.  Distribution coverage for the third quarter of 2016 was 1.41x compared to 1.37x in the third quarter of 2015.

“Our business continues to perform extremely well and we were able to achieve record levels of revenue, EBITDA and distributable cash flow for the first nine months of 2016,” said Fred Boutin, Chief Executive Officer of TransMontaigne Partners.  “Our consistent performance and stable cash flows have allowed us to raise the distribution for a fourth consecutive quarter, representing over 5%  growth for the last 12 months. Our balance sheet remains strong and flexible with a leverage ratio below 2.9x and quarterly distribution coverage greater than 1.4x.  We expect the first portion of our $75 million fee-based and fully contracted Collins terminal expansion to be in service next month and the remaining portions to be in service before the end of the second quarter of next year.”

Financial Results

An overview of our financial performance for the quarter ended September 30, 2016 compared to the quarter ended September 30, 2015, includes:

Our terminaling services agreements are structured as either throughput agreements or storage agreements.  Most of our throughput agreements contain provisions that require our customers to throughput a minimum volume of product at our facilities over a stipulated period of time, which results in a minimum amount of revenue.  Our storage agreements require our customers to make minimum payments based on the volume of storage capacity made available to the customer under the agreement, which also results in a minimum amount of revenue.  We refer to these minimum amounts of revenue recognized pursuant to our terminaling services agreements as being “firm commitments.”  Revenue recognized in excess of firm commitments and revenue recognized based solely on the volume of product distributed or injected are referred to as “variable.”  Our revenue was as follows (in thousands):

The amount of revenue recognized as “firm commitments” based on the remaining contractual term of the terminaling services agreements that generated “firm commitments” for the nine months ended September 30, 2016 was as follows (in thousands):

Our investments in unconsolidated affiliates include a 42.5% interest in BOSTCO and a 50% interest in Frontera. BOSTCO is a  terminal facility located on the Houston Ship Channel that encompasses approximately 7.1 million barrels of distillate, residual and other black oil product storage.  Frontera is a terminal facility located in Brownsville, Texas that encompasses approximately 1.5 million barrels of light petroleum product storage capacity, as well as related ancillary facilities.

The following table summarizes our investments in unconsolidated affiliates:

Earnings from investments in unconsolidated affiliates were as follows (in thousands):

Cash distributions received from unconsolidated affiliates were as follows (in thousands):

Recent Developments

Fourth consecutive increase in the quarterly distribution.    On October 17, 2016, we announced a quarterly distribution of $0.70 per unit for the three months ended September 30, 2016.  This $0.01 increase over the previous quarter reflects the fourth consecutive increase in our distribution and represents annual growth of 5.3% over the prior year.  This distribution was paid on November 7, 2016 to unitholders of record on October 31, 2016.

Expansion of the Collins/Purvis bulk storage terminal.  We previously entered into long-term terminaling services agreements with various parties for approximately 2.0 million barrels of new storage capacity at our Collins/Purvis, Mississippi bulk storage terminal.  The revenue associated with these agreements will come on-line upon completion of the construction of the new tank capacity, which remains on target for completion during the fourth quarter of 2016 through the second quarter of 2017.  The anticipated cost of the new storage capacity is approximately $75 million and is expected to generate annual cash returns in the high-teens.  Construction of the Collins/Purvis expansion project commenced in the first quarter of 2016, and we have spent approximately $30.4 million as of September 30, 2016.  Our Collins/Purvis terminal is strategically located for the bulk storage market and is the only independent terminal capable of receiving from, delivering to, and transferring refined petroleum products between the Colonial and Plantation pipeline systems.  Our facility has current active storage capacity of approximately 3.4 million barrels and is expected to increase to 5.4 million barrels once the 2.0 million barrel expansion is completed.  We have also begun the process of permitting an additional 5.0 million barrels of new capacity at our Collins/Purvis terminal and are in active discussions with several potential customers regarding this potential future capacity.

Liquidity and Capital Resources

TransMontaigne Partners L.P. released the following statements regarding its current liquidity and capital resources:

Attachment A contains additional selected financial information and results of operations.  Attachment B contains a reconciliation of net earnings to the computation of our distributable cash flow and Consolidated EBITDA. 

Conference Call

On Tuesday, November 8, 2016, the Partnership will hold a conference call for analysts and investors at 11:00 a.m. Eastern Time to discuss our third quarter 2016 results.  Hosting the call will be Fred Boutin, Chief Executive Officer, Rob Fuller, Chief Financial Officer and Gregory Pound, Chief Operating Officer.  The call can be accessed live over the telephone by dialing (800) 289-0487, or for international callers, (913) 312-0832.   A replay will be available shortly after the call and can be accessed by dialing (877) 870-5176, or for international callers (858) 384-5517.  The passcode for the replay is 5732531.  The replay will be available until November 15, 2016.

Interested parties may also listen to a simultaneous webcast of the conference call by logging onto TLP’s website at www.transmontaignepartners.com under the Investor Information section.  A replay of the webcast will also be available for approximately seven days following the call. 

Contact:

TransMontaigne Partners L.P.

(303) 626-8200

Frederick W. Boutin, Chief Executive Officer

Robert T. Fuller, Chief Financial Officer

Gregory J. Pound, Chief Operating Officer

Attachment A

Selected Financial Information and Results of Operations

The following selected financial information is extracted from our Quarterly Report on Form 10-Q for the three months ended September 30, 2016, which was filed on November 8, 2016 with the Securities and Exchange Commission (in thousands, except per unit amounts):

Selected results of operations data for each of the quarters in the years ended December 31, 2016 and 2015 are summarized below (in thousands):

Attachment B

Distributable Cash Flow

The following summarizes our distributable cash flow for the period indicated (in thousands): 

1     Distributable cash flow, the distribution coverage ratio and Consolidated EBITDA are not computations based upon generally accepted accounting principles.  The amounts included in the computations of our distributable cash flow and Consolidated EBITDA are derived from amounts separately presented in our consolidated financial statements, notes thereto and “Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q for the three months ended September 30, 2016, which was filed with the Securities and Exchange Commission on November 8, 2016.  Distributable cash flow and Consolidated EBITDA should not be considered in isolation or as an alternative to net earnings or operating income, as an indication of our operating performance, or as an alternative to cash flows from operating activities as a measure of liquidity.  Distributable cash flow and Consolidated EBITDA are not necessarily comparable to similarly titled measures of other companies.  Distributable cash flow and Consolidated EBITDA are presented here because they are widely accepted financial indicators used to compare partnership performance.  Further, Consolidated EBITDA is calculated consistent with the provisions of our credit facility and is a financial performance measure used in the calculation of our leverage ratio requirement.  We believe that these measures provide investors an enhanced perspective of the operating performance of our assets, the cash we are generating and our ability to make distributions to our unitholders and our general partner.

About TransMontaigne Partners L.P.

TransMontaigne Partners L.P. is a terminaling and transportation company based in Denver, Colorado with operations in the United States along the Gulf Coast, in the Midwest, in Houston and Brownsville, Texas, along the Mississippi and Ohio Rivers and in the Southeast.  We provide integrated terminaling, storage, transportation and related services for customers 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.    Key risk factors associated with the Collins/Purvis terminal expansion include, without limitation: (i) the ability to complete construction of the project on time and at expected costs; (ii) the ability to obtain required permits and other approvals on a timely basis; (iii) disruption in the debt and equity markets that negatively impacts the company’s ability to finance capital spending, (iv) the occurrence of operational hazards, weather related events or unforeseen interruption; and (v) the failure of our customers or vendors to satisfy or continue contractual obligations.    Additional 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 Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on March 10, 2016. 

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