Attached files
file | filename |
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EX-32.2 - EX-32.2 - TransMontaigne Partners LLC | tlp-20170930ex322600763.htm |
EX-32.1 - EX-32.1 - TransMontaigne Partners LLC | tlp-20170930ex321e3de42.htm |
EX-31.2 - EX-31.2 - TransMontaigne Partners LLC | tlp-20170930ex31280c8e5.htm |
EX-31.1 - EX-31.1 - TransMontaigne Partners LLC | tlp-20170930ex3112ae5c8.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10‑Q
(Mark One) |
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☒ |
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended September 30, 2017 |
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OR |
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☐ |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Commission File Number: 001‑32505
TRANSMONTAIGNE PARTNERS L.P.
(Exact name of registrant as specified in its charter)
Delaware |
34‑2037221 |
1670 Broadway
Suite 3100
Denver, Colorado 80202
(Address, including zip code, of principal executive offices)
(303) 626‑8200
(Telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.
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Large accelerated filer ☐ |
Accelerated filer ☒ |
Non‑accelerated filer ☐ |
Smaller reporting company ☐ |
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(Do not check if a |
Emerging growth company ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes ☐ No ☒
As of October 31, 2017, there were 16,177,353 units of the registrant’s Common Limited Partner Units outstanding.
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Page No. |
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Part I. Financial Information |
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3 |
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Consolidated balance sheets as of September 30, 2017 and December 31, 2016 |
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4 |
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5 |
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6 |
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7 |
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8 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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29 |
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45 |
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45 |
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Part II. Other Information |
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46 |
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46 |
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49 |
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2
CAUTIONARY STATEMENT REGARDING FORWARD‑LOOKING STATEMENTS
This Quarterly Report contains forward‑looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the following:
· |
certain statements, including possible or assumed future results of operations, in “Management’s Discussion and Analysis of Financial Condition and Results of Operations;” |
· |
any statements contained herein regarding the prospects for our business or any of our services or our ability to pay distributions; |
· |
any statements preceded by, followed by or that include the words “may,” “seeks,” “believes,” “expects,” “anticipates,” “intends,” “continues,” “estimates,” “plans,” “targets,” “predicts,” “attempts,” “is scheduled,” or similar expressions; and |
· |
other statements contained herein regarding matters that are not historical facts. |
Our business and results of operations are subject to risks and uncertainties, many of which are beyond our ability to control or predict. Because of these risks and uncertainties, actual results may differ materially from those expressed or implied by forward‑looking statements, and investors are cautioned not to place undue reliance on such statements, which speak only as of the date thereof. Important factors that could cause actual results to differ materially from our expectations and may adversely affect our business and results of operations, include, but are not limited to those risk factors set forth in this report in Part II. Other Information under the heading “Item 1A. Risk Factors.”
Part I. Financial Information
ITEM 1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The interim unaudited consolidated financial statements of TransMontaigne Partners L.P. as of and for the three and nine months ended September 30, 2017 are included herein beginning on the following page. The accompanying unaudited interim consolidated financial statements should be read in conjunction with our consolidated financial statements and related notes for the year ended December 31, 2016, together with our discussion and analysis of financial condition and results of operations, included in our Annual Report on Form 10‑K, filed on March 14, 2017 with the Securities and Exchange Commission (File No. 001‑32505).
TransMontaigne Partners L.P. is a holding company with the following 100% owned operating subsidiaries during the three and nine months ended September 30, 2017:
· |
TransMontaigne Operating GP L.L.C. |
· |
TransMontaigne Operating Company L.P. |
· |
TransMontaigne Terminals L.L.C. |
· |
Razorback L.L.C. (d/b/a Diamondback Pipeline L.L.C.) |
· |
TPSI Terminals L.L.C. |
· |
TLP Finance Corp. |
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TLP Operating Finance Corp. |
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TPME L.L.C. |
We do not have off‑balance‑sheet arrangements (other than operating leases) or special‑purpose entities.
3
TransMontaigne Partners L.P. and subsidiaries
Consolidated balance sheets (unaudited)
(Dollars in thousands)
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September 30, |
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December 31, |
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2017 |
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2016 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
4,853 |
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$ |
593 |
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Trade accounts receivable, net |
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10,303 |
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9,297 |
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Due from affiliates |
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1,458 |
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653 |
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Other current assets |
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6,458 |
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9,903 |
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Total current assets |
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23,072 |
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20,446 |
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Property, plant and equipment, net |
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426,467 |
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416,748 |
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Goodwill |
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8,485 |
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8,485 |
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Investments in unconsolidated affiliates |
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236,706 |
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241,093 |
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Other assets, net |
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7,165 |
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2,922 |
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$ |
701,895 |
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$ |
689,694 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Trade accounts payable |
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$ |
9,073 |
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$ |
7,928 |
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Accrued liabilities |
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18,002 |
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13,998 |
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Total current liabilities |
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27,075 |
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21,926 |
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Other liabilities |
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3,411 |
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3,234 |
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Long-term debt |
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302,000 |
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291,800 |
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Total liabilities |
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332,486 |
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316,960 |
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Commitments and contingencies (Note 16) |
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Partners’ equity: |
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Common unitholders (16,170,855 units issued and outstanding at September 30, 2017 and 16,137,650 units issued and outstanding at December 31, 2016) |
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316,090 |
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320,042 |
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General partner interest (2% interest with 330,017 equivalent units outstanding at September 30, 2017 and 329,339 equivalent units outstanding at December 31, 2016) |
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53,319 |
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52,692 |
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Total partners’ equity |
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369,409 |
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372,734 |
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$ |
701,895 |
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$ |
689,694 |
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See accompanying notes to consolidated financial statements (unaudited).
4
TransMontaigne Partners L.P. and subsidiaries
Consolidated statements of operations (unaudited)
(In thousands, except per unit amounts)
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2017 |
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2016 |
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2017 |
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2016 |
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Revenue: |
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External customers |
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$ |
43,512 |
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$ |
39,328 |
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$ |
130,442 |
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$ |
115,570 |
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Affiliates |
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1,937 |
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1,310 |
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5,221 |
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6,830 |
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Total revenue |
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45,449 |
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40,638 |
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135,663 |
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122,400 |
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Operating costs and expenses and other: |
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Direct operating costs and expenses |
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(17,719) |
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(17,048) |
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(50,214) |
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(50,657) |
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General and administrative expenses |
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(5,247) |
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(3,605) |
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(13,298) |
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(10,929) |
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Insurance expenses |
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(999) |
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(969) |
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(3,007) |
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(2,776) |
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Equity-based compensation expense |
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(544) |
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(251) |
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(2,713) |
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(2,664) |
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Depreciation and amortization |
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(8,882) |
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(8,169) |
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(26,379) |
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(24,168) |
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Earnings from unconsolidated affiliates |
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1,884 |
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2,960 |
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6,564 |
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6,940 |
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Total operating costs and expenses and other |
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(31,507) |
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(27,082) |
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(89,047) |
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(84,254) |
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Operating income |
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13,942 |
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13,556 |
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46,616 |
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38,146 |
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Other expenses: |
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Interest expense |
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(2,656) |
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(1,467) |
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(7,333) |
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(6,627) |
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Amortization of deferred financing costs |
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(320) |
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(204) |
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(885) |
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(614) |
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Total other expenses |
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(2,976) |
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(1,671) |
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(8,218) |
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(7,241) |
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Net earnings |
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10,966 |
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11,885 |
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38,398 |
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30,905 |
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Less—earnings allocable to general partner interest including incentive distribution rights |
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(3,270) |
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(2,429) |
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(9,218) |
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(6,727) |
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Net earnings allocable to limited partners |
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$ |
7,696 |
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$ |
9,456 |
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$ |
29,180 |
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$ |
24,178 |
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Net earnings per limited partner unit—basic |
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$ |
0.47 |
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$ |
0.58 |
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$ |
1.79 |
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$ |
1.49 |
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Net earnings per limited partner unit—diluted |
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$ |
0.47 |
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$ |
0.58 |
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$ |
1.79 |
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$ |
1.49 |
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See accompanying notes to consolidated financial statements (unaudited).
5
TransMontaigne Partners L.P. and subsidiaries
Consolidated statements of partners’ equity (unaudited)
Year ended December 31, 2016 and nine months ended September 30, 2017
(Dollars in thousands)
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General |
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Common |
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partner |
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units |
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interest |
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Total |
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Balance December 31, 2015 |
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$ |
326,224 |
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$ |
57,747 |
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$ |
383,971 |
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Distributions to unitholders |
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(44,211) |
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(8,898) |
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(53,109) |
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Equity-based compensation |
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3,128 |
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— |
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3,128 |
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Issuance of 19,008 common units pursuant to our long-term incentive plan |
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135 |
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— |
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135 |
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Issuance of 2,094 common units pursuant to our savings and retention program |
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— |
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— |
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— |
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TransMontaigne GP to maintain its 2% general partner interest |
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— |
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9 |
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9 |
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Excess of $12.0 million purchase price of hydrant system from TransMontaigne LLC over the carryover basis of the net assets |
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— |
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(5,506) |
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(5,506) |
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Net earnings for year ended December 31, 2016 |
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34,766 |
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|
9,340 |
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44,106 |
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Balance December 31, 2016 |
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|
320,042 |
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52,692 |
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372,734 |
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Distributions to unitholders |
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(35,134) |
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(8,621) |
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(43,755) |
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Equity-based compensation |
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2,713 |
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— |
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|
2,713 |
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Settlement of tax withholdings on equity-based compensation |
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(711) |
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|
— |
|
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(711) |
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Issuance of 33,205 common units pursuant to our savings and retention program |
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|
— |
|
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— |
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— |
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TransMontaigne GP to maintain its 2% general partner interest |
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— |
|
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30 |
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30 |
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Net earnings for nine months ended September 30, 2017 |
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|
29,180 |
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|
9,218 |
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|
38,398 |
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Balance September 30, 2017 |
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$ |
316,090 |
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$ |
53,319 |
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$ |
369,409 |
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See accompanying notes to consolidated financial statements (unaudited).
6
TransMontaigne Partners L.P. and subsidiaries
Consolidated statements of cash flows (unaudited)
(In thousands)
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2017 |
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2016 |
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2017 |
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2016 |
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Cash flows from operating activities: |
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Net earnings |
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$ |
10,966 |
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$ |
11,885 |
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$ |
38,398 |
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$ |
30,905 |
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Adjustments to reconcile net earnings to net cash provided by operating activities: |
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|
|
|
|
|
|
|
|
|
|
|
|
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Depreciation and amortization |
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|
8,882 |
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|
8,169 |
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26,379 |
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24,168 |
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Earnings from unconsolidated affiliates |
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(1,884) |
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(2,960) |
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(6,564) |
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(6,940) |
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Distributions from unconsolidated affiliates |
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|
4,201 |
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|
4,457 |
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|
13,096 |
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|
12,663 |
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Equity-based compensation |
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|
544 |
|
|
251 |
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2,713 |
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|
2,664 |
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Amortization of deferred financing costs |
|
|
320 |
|
|
204 |
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|
885 |
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|
614 |
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Amortization of deferred revenue |
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(170) |
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(108) |
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(211) |
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(428) |
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Unrealized (gain) loss on derivative instruments |
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65 |
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(578) |
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(155) |
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557 |
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Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: |
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|
|
|
|
|
|
|
|
|
|
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Trade accounts receivable, net |
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(1,020) |
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|
(1,950) |
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|
(879) |
|
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(2,949) |
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Due from affiliates |
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(49) |
|
|
(640) |
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|
(805) |
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(76) |
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Other current assets |
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1,146 |
|
|
(788) |
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|
3,905 |
|
|
(793) |
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Amounts due under long-term terminaling services agreements, net |
|
|
772 |
|
|
(121) |
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|
447 |
|
|
(193) |
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Deposits |
|
|
(4) |
|
|
11 |
|
|
50 |
|
|
11 |
|
|
Trade accounts payable |
|
|
2,095 |
|
|
266 |
|
|
2,526 |
|
|
(1,570) |
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Due to affiliates |
|
|
— |
|
|
(107) |
|
|
— |
|
|
— |
|
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Accrued liabilities |
|
|
1,537 |
|
|
3,926 |
|
|
4,004 |
|
|
7,176 |
|
|
Net cash provided by operating activities |
|
|
27,401 |
|
|
21,917 |
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|
83,789 |
|
|
65,809 |
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Cash flows from investing activities: |
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|
|
|
|
|
|
|
|
|
|
|
|
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Acquisition of terminal assets |
|
|
— |
|
|
— |
|
|
— |
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(12,000) |
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Investments in unconsolidated affiliates |
|
|
— |
|
|
— |
|
|
(2,145) |
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|
(2,225) |
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Capital expenditures |
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(8,682) |
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|
(10,139) |
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|
(37,327) |
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|
(34,105) |
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Net cash used in investing activities |
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|
(8,682) |
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|
(10,139) |
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(39,472) |
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|
(48,330) |
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Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
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|
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Borrowings of debt under credit facility |
|
|
14,600 |
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|
35,400 |
|
|
101,700 |
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|
140,200 |
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Repayments of debt under credit facility |
|
|
(14,600) |
|
|
(33,100) |
|
|
(91,500) |
|
|
(117,900) |
|
|
Deferred financing costs |
|
|
— |
|
|
(228) |
|
|
(5,361) |
|
|
(680) |
|
|
Deferred issuance costs |
|
|
(457) |
|
|
— |
|
|
(460) |
|
|
— |
|
|
Settlement of tax withholdings on equity-based compensation |
|
|
(304) |
|
|
— |
|
|
(711) |
|
|
— |
|
|
Distributions paid to unitholders |
|
|
(15,078) |
|
|
(13,438) |
|
|
(43,755) |
|
|
(39,345) |
|
|
Contribution of cash by TransMontaigne GP |
|
|
8 |
|
|
1 |
|
|
30 |
|
|
6 |
|
|
Net cash used in financing activities |
|
|
(15,831) |
|
|
(11,365) |
|
|
(40,057) |
|
|
(17,719) |
|
|
Increase (decrease) in cash and cash equivalents |
|
|
2,888 |
|
|
413 |
|
|
4,260 |
|
|
(240) |
|
|
Cash and cash equivalents at beginning of period |
|
|
1,965 |
|
|
28 |
|
|
593 |
|
|
681 |
|
|
Cash and cash equivalents at end of period |
|
$ |
4,853 |
|
$ |
441 |
|
$ |
4,853 |
|
$ |
441 |
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
2,688 |
|
$ |
2,049 |
|
$ |
7,279 |
|
$ |
6,048 |
|
|
Property, plant and equipment acquired with accounts payable |
|
$ |
3,733 |
|
$ |
9,295 |
|
$ |
3,733 |
|
$ |
9,295 |
|
|
See accompanying notes to consolidated financial statements (unaudited).
7
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Nature of business
TransMontaigne Partners L.P. (“we,” “us,” “our,” “the Partnership”) was formed in February 2005 as a Delaware limited partnership. We provide integrated terminaling, storage, transportation and related services for companies engaged in the trading, distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. We conduct our 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 are controlled by our general partner, TransMontaigne GP L.L.C. (“TransMontaigne GP”), which as of February 1, 2016 is a wholly‑owned indirect subsidiary of ArcLight Energy Partners Fund VI, L.P. (“ArcLight”). Prior to February 1, 2016, TransMontaigne LLC, a wholly-owned subsidiary of NGL Energy Partners LP (“NGL”), owned all the issued and outstanding ownership interests of TransMontaigne GP.
(b) Basis of presentation and use of estimates
Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include the accounts of TransMontaigne Partners L.P. and its controlled subsidiaries. Investments where we do not have the ability to exercise control, but do have the ability to exercise significant influence, are accounted for using the equity method of accounting. All inter‑company accounts and transactions have been eliminated in the preparation of the accompanying consolidated financial statements. The accompanying consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly our financial position as of September 30, 2017 and December 31, 2016 and our results of operations for the three and nine months ended September 30, 2017 and 2016. Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
The preparation of financial statements in conformity with “GAAP” requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. The following estimates, in management’s opinion, are subjective in nature, require the exercise of judgment, and/or involve complex analyses: useful lives of our plant and equipment and accrued environmental obligations. Changes in these estimates and assumptions will occur as a result of the passage of time and the occurrence of future events. Actual results could differ from these estimates.
(c) Accounting for terminal and pipeline operations
In connection with our terminal and pipeline operations, we utilize the accrual method of accounting for revenue and expenses. We generate revenue from terminaling services fees, transportation fees, management fees and cost reimbursements, fees from other ancillary services and gains from the sale of refined products. Terminaling services revenue is recognized ratably over the term of the agreement for storage fees and minimum revenue commitments that are fixed at the inception of the agreement and when product is delivered to the customer for fees based on a rate per barrel of throughput; transportation revenue is recognized when the product has been delivered to the customer at the specified delivery location; management fee revenue and cost reimbursements are recognized as the services are performed or as the costs are incurred; ancillary service revenue is recognized as the services are performed; and gains from the sale of refined products are recognized when the title to the product is transferred.
Pursuant to terminaling services agreements with certain of our throughput customers, we are entitled to the volume of product gained resulting from differences in the measurement of product volumes received and distributed at our terminaling facilities. Consistent with recognized industry practices, measurement differentials occur as the result of the inherent variances in measurement devices and methodology. We recognize as revenue the net proceeds from the sale of the product gained. For the three months ended September 30, 2017 and 2016, we recognized revenue of
8
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
approximately $2.4 million and $1.6 million, respectively, for net product gained. Within these amounts, approximately $nil for both the three months ended September 30, 2017 and 2016, were pursuant to terminaling services agreements with affiliate customers. For the nine months ended September 30, 2017 and 2016, we recognized revenue of approximately $7.5 million and $4.2 million, respectively, for net product gained. Within these amounts, approximately $nil and $0.3 million for the nine months ended September 30, 2017 and 2016, respectively, were pursuant to terminaling services agreements with affiliate customers.
(d) Cash and cash equivalents
We consider all short‑term investments with a remaining maturity of three months or less at the date of purchase to be cash equivalents.
(e) Property, plant and equipment
Depreciation is computed using the straight‑line method. Estimated useful lives are 15 to 25 years for terminals and pipelines and 3 to 25 years for furniture, fixtures and equipment. All items of property, plant and equipment are carried at cost. Expenditures that increase capacity or extend useful lives are capitalized. Repairs and maintenance are expensed as incurred.
We evaluate long‑lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable based on expected undiscounted future cash flows attributable to that asset group. If an asset group is impaired, the impairment loss to be recognized is the excess of the carrying amount of the asset group over its estimated fair value.
(f) Investments in unconsolidated affiliates
We account for our investments in unconsolidated affiliates, which we do not control but do have the ability to exercise significant influence over, using the equity method of accounting. Under this method, the investment is recorded at acquisition cost, increased by our proportionate share of any earnings and additional capital contributions and decreased by our proportionate share of any losses, distributions received and amortization of any excess investment. Excess investment is the amount by which our total investment exceeds our proportionate share of the book value of the net assets of the investment entity. We evaluate our investments in unconsolidated affiliates for impairment whenever events or circumstances indicate there is a loss in value of the investment that is other than temporary. In the event of impairment, we would record a charge to earnings to adjust the carrying amount to estimated fair value.
(g) Environmental obligations
We accrue for environmental costs that relate to existing conditions caused by past operations when probable and reasonably estimable (see Note 10 of Notes to consolidated financial statements). Environmental costs include initial site surveys and environmental studies of potentially contaminated sites, costs for remediation and restoration of sites determined to be contaminated and ongoing monitoring costs, as well as fines, damages and other costs, including direct legal costs. Liabilities for environmental costs at a specific site are initially recorded, on an undiscounted basis, when it is probable that we will be liable for such costs, and a reasonable estimate of the associated costs can be made based on available information. Such an estimate includes our share of the liability for each specific site and the sharing of the amounts related to each site that will not be paid by other potentially responsible parties, based on enacted laws and adopted regulations and policies. Adjustments to initial estimates are recorded, from time to time, to reflect changing circumstances and estimates based upon additional information developed in subsequent periods. Estimates of our ultimate liabilities associated with environmental costs are difficult to make with certainty due to the number of variables involved, including the early stage of investigation at certain sites, the lengthy time frames required to complete remediation, technology changes, alternatives available and the evolving nature of environmental laws and regulations. We periodically file claims for insurance recoveries of certain environmental remediation costs with our insurance carriers under our comprehensive liability policies (see Note 5 of Notes to consolidated financial statements).
9
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
We recognize our insurance recoveries as a credit to income in the period that we assess the likelihood of recovery as being probable (i.e., likely to occur).
In connection with our previous acquisitions of certain terminals from TransMontaigne LLC, TransMontaigne LLC has agreed to indemnify us against certain potential environmental claims, losses and expenses at those terminals (see Note 2 of Notes to consolidated financial statements).
(h) Asset retirement obligations
Asset retirement obligations are legal obligations associated with the retirement of long‑lived assets that result from the acquisition, construction, development or normal use of the asset. Generally accepted accounting principles require that the fair value of a liability related to the retirement of long‑lived assets be recorded at the time a legal obligation is incurred. Once an asset retirement obligation is identified and a liability is recorded, a corresponding asset is recorded, which is depreciated over the remaining useful life of the asset. After the initial measurement, the liability is adjusted to reflect changes in the asset retirement obligation. If and when it is determined that a legal obligation has been incurred, the fair value of any liability is determined based on estimates and assumptions related to retirement costs, future inflation rates and interest rates. Our long‑lived assets consist of above‑ground storage facilities and underground pipelines. We are unable to predict if and when these long‑lived assets will become completely obsolete and require dismantlement. We have not recorded an asset retirement obligation, or corresponding asset, because the future dismantlement and removal dates of our long‑lived assets is indeterminable and the amount of any associated costs are believed to be insignificant. Changes in our assumptions and estimates may occur as a result of the passage of time and the occurrence of future events.
(i) Equity-based compensation
Generally accepted accounting principles require us to measure the cost of services received in exchange for an award of equity instruments based on the measurement‑date fair value of the award. That cost is recognized during the period services are provided in exchange for the award (see Note 14 of Notes to consolidated financial statements).
(j) Accounting for derivative instruments
Generally accepted accounting principles require us to recognize all derivative instruments at fair value in the consolidated balance sheets as assets or liabilities (see Note 9 of Notes to consolidated financial statements). Changes in the fair value of our derivative instruments are recognized in earnings.
At both September 30, 2017 and December 31, 2016, our derivative instruments were limited to interest rate swap agreements with an aggregate notional amount of $125.0 million. Our derivative instruments expire between March 25, 2018 and March 11, 2019. Pursuant to the terms of the interest rate swap agreements, we pay a blended fixed rate of approximately 1.01% and receive interest payments based on the one-month LIBOR. The net difference to be paid or received under the interest rate swap agreements is settled monthly and is recognized as an adjustment to interest expense. The fair value of our interest rate swap agreements are determined using a pricing model based on the LIBOR swap rate and other observable market data.
(k) Income taxes
No provision for U.S. federal income taxes has been reflected in the accompanying consolidated financial statements because we are treated as a partnership for federal income tax purposes. As a partnership, all income, gains, losses, expenses, deductions and tax credits generated by us flow through to our unitholders.
10
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
(l) Net earnings per limited partner unit
Net earnings allocable to the limited partners, for purposes of calculating net earnings per limited partner unit, are calculated under the two-class method and accordingly are net of the earnings allocable to the general partner interest and distributions payable to any restricted phantom units granted under our equity-based compensation plans that participate in our distributions. The earnings allocable to the general partner interest include the distributions of available cash (as defined by our partnership agreement) attributable to the period to the general partner interest, net of adjustments for the general partner’s share of undistributed earnings, and the incentive distribution rights. Undistributed earnings are the difference between the earnings and the distributions attributable to the period. Undistributed earnings are allocated to the limited partners and general partner interest based on their respective sharing of earnings or losses specified in the partnership agreement, which is based on their ownership percentages of 98% and 2%, respectively. The incentive distribution rights are not allocated a portion of the undistributed earnings given they are not entitled to distributions other than from available cash. Further, the incentive distribution rights do not share in losses under our partnership agreement. Basic net earnings per limited partner unit is computed by dividing net earnings allocable to the limited partners by the weighted average number of limited partner units outstanding during the period. Diluted net earnings per limited partner unit is computed by dividing net earnings allocable to the limited partners by the weighted average number of limited partner units outstanding during the period and any potential dilutive securities outstanding during the period.
(m) Comprehensive income
Entities that report items of other comprehensive income have the option to present the components of net earnings and comprehensive income in either one continuous financial statement, or two consecutive financial statements. As the Partnership has no components of comprehensive income other than net earnings, no statement of comprehensive income has been presented.
(n) Recent accounting pronouncements
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The objective of this update is to clarify the principles for recognizing revenue and to develop a common revenue standard. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period.
We expect to adopt the new standard on January 1, 2018 using the modified retrospective method described within the ASU. This approach requires us to apply the new revenue standard to (i) all new revenue contracts entered into after January 1, 2018 and (ii) all existing revenue contracts as of January 1, 2018 through a cumulative adjustment to equity. We have established a working group to evaluate the impact of ASU 2014-09 and all related ASU’s. The working group is in the late stages of reviewing contracts in order to determine the impact the ASU will have on our disclosures and financial statements. We have also begun designing required disclosures.
In February 2016, the FASB issued ASU 2016-02, Leases. The objective of this update is to improve financial reporting about leasing transactions. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. We are currently evaluating the potential impact that the adoption will have on our disclosures and financial statements.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipt and Cash Payments, to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating the potential impact that the adoption will have on our disclosures and financial statements.
11
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, to simplify the accounting for goodwill impairment by eliminating step 2 from the goodwill impairment test. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. We are currently evaluating the potential impact that the adoption will have on our disclosures and financial statements.
(2) TRANSACTIONS WITH AFFILIATES
Omnibus agreement. On May 27, 2005 we entered into an omnibus agreement with TransMontaigne LLC and our general partner, which agreement has been subsequently amended from time to time. In connection with the ArcLight acquisition of our general partner, effective February 1, 2016, we entered into the second amended and restated omnibus agreement to consent to the assignment of the omnibus agreement from TransMontaigne LLC to Gulf TLP Holdings LLC, an ArcLight subsidiary, to waive the automatic termination that would have occurred at such time as TransMontaigne LLC ceased to control our general partner and to remove certain legacy provisions that were no longer applicable to the Partnership. The omnibus agreement will continue in effect until the earlier of (i) ArcLight ceasing to control our general partner or (ii) the election of either us or the owner of TransMontaigne GP, following at least 24 months prior written notice to the other parties.
Under the omnibus agreement we pay Gulf TLP Holdings, the owner of TransMontaigne GP, an administrative fee for the provision of various general and administrative services for our benefit. The administrative fee paid for the three months ended September 30, 2017 and 2016 was approximately $3.4 million and $2.8 million, respectively. For the nine months ended September 30, 2017 and 2016, the administrative fee paid was approximately $9.4 million and $8.5 million, respectively. The administrative fee is recognized as a component of general and administrative expenses and encompasses services to perform centralized corporate functions, such as legal, accounting, treasury, insurance administration and claims processing, health, safety and environmental, information technology, human resources, credit, payroll, taxes, engineering and other corporate services. The Partnership has no officers or employees and all of our management and operational activities are provided by officers and employees of TLP Management Services, a wholly owned subsidiary of Gulf TLP Holdings.
If we acquire or construct additional facilities, the owner of TransMontaigne GP may propose a revised administrative fee covering the provision of services for such additional facilities, subject to approval by the conflicts committee of our general partner. Effective May 3, 2017 the board of TransMontaigne GP, with the concurrence of the conflicts committee, approved a $1.8 million annual increase (or $150,000 monthly) to the administrative fee related to the construction of approximately 2.0 million barrels of new tank capacity at our Collins, Mississippi bulk storage terminal. The increase will be ratably applied monthly beginning May 3, 2017 based on the percentage of the approximately 2.0 million barrels of new tank capacity that has been placed into service.
The omnibus agreement further provides that we pay the owner of TransMontaigne GP for insurance policies purchased on our behalf to cover our facilities and operations. For the three months ended September 30, 2017 and 2016, the insurance reimbursement paid was approximately $nil and $1.0 million, respectively. For the nine months ended September 30, 2017 and 2016, the insurance reimbursement paid was approximately $nil and $2.8 million, respectively. Beginning October 31, 2016, we contracted directly with insurance carriers for the majority of our insurance requirements. For the three months ended September 30, 2017 and 2016, the expense associated with insurance contracted directly by us was approximately $1.0 million and $nil, respectively. For the nine months ended September 30, 2017 and 2016, the expense associated with insurance contracted directly by us was approximately $3.0 million and $nil, respectively. We also pay the owner of TransMontaigne GP for direct operating costs and expenses, such as salaries of operational personnel performing services on‑site at our terminals and pipelines and the cost of their employee benefits, including 401(k) and health insurance benefits.
12
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
Under the omnibus agreement we have agreed to reimburse the owner of TransMontaigne GP for bonus awards made to key employees under the owner of TransMontaigne GP’s savings and retention program, provided the compensation committee and the conflicts committee of our general partner approve the annual awards granted under the program. We have the option to provide the reimbursement in either a cash payment or the delivery of our common units to the owner of TransMontaigne GP or directly to the award recipients, with the reimbursement made in accordance with the underlying vesting and payment schedule of the savings and retention program (see Note 14 of Notes to the consolidated financial statements).
Environmental indemnification. In connection with our acquisition of the Florida and Midwest terminals on May 27, 2005, TransMontaigne LLC agreed to indemnify us against certain potential environmental claims, losses and expenses that were identified on or before May 27, 2010, and that were associated with the ownership or operation of the Florida and Midwest terminals prior to May 27, 2005. TransMontaigne LLC’s maximum liability for this indemnification obligation is $15.0 million. TransMontaigne LLC has no obligation to indemnify us for losses until such aggregate losses exceed $250,000. TransMontaigne LLC has no indemnification obligations with respect to environmental claims made as a result of additions to or modifications of environmental laws promulgated after May 27, 2005.
In connection with our acquisition of the Brownsville, Texas and River terminals on December 31, 2006, TransMontaigne LLC agreed to indemnify us against potential environmental claims, losses and expenses that were identified on or before December 31, 2011, and that were associated with the ownership or operation of the Brownsville and River facilities prior to December 31, 2006. TransMontaigne LLC’s maximum liability for this indemnification obligation is $15.0 million. TransMontaigne LLC has no obligation to indemnify us for losses until such aggregate losses exceed $250,000. The deductible amount, cap amount and limitation of time for indemnification do not apply to any environmental liabilities known to exist as of December 31, 2006. TransMontaigne LLC has no indemnification obligations with respect to environmental claims made as a result of additions to or modifications of environmental laws promulgated after December 31, 2006.
In connection with our acquisition of the Southeast terminals on December 31, 2007, TransMontaigne LLC agreed to indemnify us against potential environmental claims, losses and expenses that were identified on or before December 31, 2012, and that were associated with the ownership or operation of the Southeast terminals prior to December 31, 2007. TransMontaigne LLC’s maximum liability for this indemnification obligation is $15.0 million. TransMontaigne LLC has no obligation to indemnify us for losses until such aggregate losses exceed $250,000. The deductible amount, cap amount and limitation of time for indemnification do not apply to any environmental liabilities known to exist as of December 31, 2007. TransMontaigne LLC has no indemnification obligations with respect to environmental claims made as a result of additions to or modifications of environmental laws promulgated after December 31, 2007.
In connection with our acquisition of the Pensacola terminal on March 1, 2011, TransMontaigne LLC agreed to indemnify us against potential environmental claims, losses and expenses that were identified on or before March 1, 2016, and that were associated with the ownership or operation of the Pensacola terminal prior to March 1, 2011. TransMontaigne LLC’s maximum liability for this indemnification obligation is $2.5 million. TransMontaigne LLC has no obligation to indemnify us for losses until such aggregate losses exceed $200,000. The deductible amount, cap amount and limitation of time for indemnification do not apply to any environmental liabilities known to exist as of March 1, 2011. TransMontaigne LLC has no indemnification obligations with respect to environmental claims made as a result of additions to or modifications of environmental laws promulgated after March 1, 2011.
The forgoing environmental indemnification obligations of TransMontaigne LLC to us remain in place and were not affected by ArcLight’s acquisition of our general partner.
Operations and reimbursement agreement—Frontera. We have a 50% ownership interest in the Frontera Brownsville LLC joint venture, or “Frontera”. We operate Frontera, in accordance with an operations and reimbursement agreement executed between us and Frontera, for a management fee that is based on our costs incurred. Our agreement with Frontera stipulates that we may resign as the operator at any time with the prior written consent of Frontera, or that
13
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
we may be removed as the operator for good cause, which includes material noncompliance with laws and material failure to adhere to good industry practice regarding health, safety or environmental matters. We recognized revenue related to this operations and reimbursement agreement of approximately $1.3 million and $1.2 million for the three months ended September 30, 2017 and 2016, respectively, and approximately $3.9 million and $3.8 million for the nine months ended September 30, 2017 and 2016, respectively.
Terminaling services agreement—Brownsville terminals. In September 2016, we entered into a terminaling services agreement with Frontera relating to our Brownsville, Texas facility that will expire in June 2019, subject to a two-year automatic renewal unless terminated by either party upon 180 days’ prior notice. In exchange for its minimum throughput commitment, we have agreed to provide Frontera with approximately 151,000 barrels of storage capacity.
We recognized revenue related to this agreement of approximately $0.4 million and $0.1 million for the three months ended September 30, 2017 and 2016, respectively, and approximately $1.1 million and $0.1 million for the nine months ended September 30, 2017 and 2016, respectively.
Terminaling services agreement—Brownsville terminals. In June 2017, we entered into a terminaling services agreement with Frontera relating to our Brownsville, Texas facility that will expire in June 2018, subject to a one-year automatic renewal unless terminated by either party upon 90 days’ prior notice. In exchange for its minimum throughput commitment, we have agreed to provide Frontera with approximately 90,000 barrels of storage capacity.
We recognized revenue related to this agreement of approximately $0.2 million and $nil for the three months ended September 30, 2017 and 2016, respectively, and approximately $0.2 million and $nil for the nine months ended September 30, 2017 and 2016, respectively.
Terminaling services agreement—Southeast terminals. In connection with the ArcLight acquisition of our general partner, our Southeast terminaling services agreement with NGL was amended to extend the term of the agreement through July 31, 2040 at the prevailing contract rate terms contained within the agreement. Subsequent to January 31, 2023, NGL has the ability to terminate the agreement at any time upon at least 24 months’ prior notice of its intent to terminate the agreement. Subsequent to the ArcLight acquisition, effective February 1, 2016, revenue associated with the Southeast terminaling services agreement is recorded as revenue from external customers as opposed to revenue from affiliates.
Under this agreement, NGL is obligated to throughput a volume of refined product that, at the fee schedule contained in the agreement, resulted in minimum throughput payments to us of approximately $7.0 million and $6.8 million for the three months ended September 30, 2017 and 2016, respectively, and approximately $20.7 million and $20.3 million for the nine months ended September 30, 2017 and 2016, respectively. The agreement contains stipulated annual increases in throughput payments based on increases in the United States Consumer Price Index. The minimum annual throughput payment is reduced proportionately for any decrease in storage capacity due to out‑of‑service tank capacity.
If a force majeure event occurs that renders us unable to perform our obligations with respect to an asset, the obligations would be temporarily suspended with respect to that asset. If a force majeure event continues for 30 consecutive days or more and results in a diminution in the storage capacity we make available, the counterparty may terminate its obligations with respect to the asset affected by the force majeure event and their minimum revenue commitment would be reduced proportionately for the duration of the agreement.
(3) ACQUISITION OF TERMINAL ASSETS FROM AFFILIATE
Effective January 28, 2016, we acquired from TransMontaigne LLC its Port Everglades, Florida hydrant system for a cash payment of $12.0 million. The hydrant system encompasses a system for fueling cruise ships. The acquisition of the hydrant system from TransMontaigne LLC has been recorded at the carryover basis as a reorganization of entities under common control. Accordingly, we recorded the assets at their net book value of $6.5 million with the remaining purchase price of $5.5 million recorded as a reduction to the general partner interest. TransMontaigne LLC controlled
14
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
our general partner on the acquisition date; therefore, the difference between the consideration we paid to TransMontaigne LLC and the carryover basis of the net assets purchased has been reflected in the accompanying consolidated balance sheets and statements of partners’ equity as a decrease to the general partner interest. The accompanying consolidated financial statements include the assets, liabilities and results of operations of the hydrant system from January 28, 2016. As this transaction is not considered material to our consolidated financial statements we did not recast prior period consolidated financial statements.
(4) CONCENTRATION OF CREDIT RISK AND TRADE ACCOUNTS RECEIVABLE
Our primary market areas are located in the United States along the Gulf Coast, in the Southeast, in Brownsville, Texas, along the Mississippi and Ohio Rivers, and in the Midwest. We have a concentration of trade receivable balances due from companies engaged in the trading, distribution and marketing of refined products and crude oil. These concentrations of customers may affect our overall credit risk in that the customers may be similarly affected by changes in economic, regulatory or other factors. Our customers’ historical financial and operating information is analyzed prior to extending credit. We manage our exposure to credit risk through credit analysis, credit approvals, credit limits and monitoring procedures, and for certain transactions we may request letters of credit, prepayments or guarantees. We maintain allowances for potentially uncollectible accounts receivable.
Trade accounts receivable, net consists of the following (in thousands):
|
|
September 30, |
|
December 31, |
|
||
|
|
2017 |
|
2016 |
|
||
Trade accounts receivable |
|
$ |
10,422 |
|
$ |
9,416 |
|
Less allowance for doubtful accounts |
|
|
(119) |
|
|
(119) |
|
|
|
$ |
10,303 |
|
$ |
9,297 |
|
The following customers accounted for at least 10% of our consolidated revenue in at least one of the periods presented in the accompanying consolidated statements of operations:
|
|
Three months ended |
|
|
Nine months ended |
|
||||
|
|
September 30, |
|
|
September 30, |
|
||||
|
|
2017 |
|
2016 |
|
|
2017 |
|
2016 |
|
NGL Energy Partners LP |
|
27 |
% |
22 |
% |
|
26 |
% |
21 |
% |
Castleton Commodities International LLC |
|
13 |
% |
15 |
% |
|
13 |
% |
14 |
% |
RaceTrac Petroleum Inc. |
|
13 |
% |
13 |
% |
|
13 |
% |
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
Other current assets are as follows (in thousands):
|
|
September 30, |
|
December 31, |
|
||
|
|
2017 |
|
2016 |
|
||
Amounts due from insurance companies |
|
$ |
2,054 |
|
$ |
1,810 |
|
Additive detergent |
|
|
1,249 |
|
|
1,364 |
|
Prepaid insurance |
|
|
2,075 |
|
|
4,684 |
|
Deposits and other assets |
|
|
1,080 |
|
|
2,045 |
|
|
|
$ |
6,458 |
|
$ |
9,903 |
|
Amounts due from insurance companies. We periodically file claims for recovery of environmental remediation costs with our insurance carriers under our comprehensive liability policies. We recognize our insurance recoveries in the period that we assess the likelihood of recovery as being probable (i.e., likely to occur). At September 30, 2017 and December 31, 2016, we have recognized amounts due from insurance companies of approximately $2.1 million and $1.8 million, respectively, representing our best estimate of our probable insurance recoveries. During
15
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
the nine months ended September 30, 2017, we received reimbursements from insurance companies of approximately $1.0 million. During the nine months ended September 30, 2017, we increased our estimate of probable future insurance recoveries by approximately $1.2 million.
(6) PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, net is as follows (in thousands):
|
|
September 30, |
|
December 31, |
|
||
|
|
2017 |
|
2016 |
|
||
Land |
|
$ |
53,079 |
|
$ |
53,079 |
|
Terminals, pipelines and equipment |
|
|
679,801 |
|
|
651,783 |
|
Furniture, fixtures and equipment |
|
|
4,386 |
|
|
4,100 |
|
Construction in progress |
|
|
19,361 |
|
|
11,715 |
|
|
|
|
756,627 |
|
|
720,677 |
|
Less accumulated depreciation |
|
|
(330,160) |
|
|
(303,929) |
|
|
|
$ |
426,467 |
|
$ |
416,748 |
|
Goodwill is as follows (in thousands):
|
|
September 30, |
|
December 31, |
|
||
|
|
2017 |
|
2016 |
|
||
Brownsville terminals |
|
$ |
8,485 |
|
$ |
8,485 |
|
Goodwill is required to be tested for impairment annually unless events or changes in circumstances indicate it is more likely than not that an impairment loss has been incurred at an interim date. Our annual test for the impairment of goodwill is performed as of December 31. The impairment test is performed at the reporting unit level. Our reporting units are our operating segments (see Note 18 of Notes to consolidated financial statements). The fair value of each reporting unit is determined on a stand‑alone basis from the perspective of a market participant and represents an estimate of the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to be impaired.
At September 30, 2017 and December 31, 2016, our only reporting unit that contained goodwill was our Brownsville terminals. We did not recognize any goodwill impairment charges during the nine months ended September 30, 2017 or during the year ended December 31, 2016 for this reporting unit. However, a significant decline in the price of our common units with a resulting increase in the assumed market participants’ weighted average cost of capital, the loss of a significant customer, the disposition of significant assets, or an unforeseen increase in the costs to operate and maintain the Brownsville terminals could result in the recognition of an impairment charge in the future.
(8) INVESTMENTS IN UNCONSOLIDATED AFFILIATES
At September 30, 2017 and December 31, 2016, our investments in unconsolidated affiliates include a 42.5% Class A ownership interest in Battleground Oil Specialty Terminal Company LLC (“BOSTCO”) and a 50% ownership interest in Frontera Brownsville LLC (“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. Class A and Class B ownership interests share in cash distributions on a 96.5% and 3.5% basis, respectively. Class B ownership interests do not have voting rights and are not required to make capital investments. Frontera is a terminal facility located in Brownsville, Texas that encompasses approximately 1.5 million barrels of light petroleum product storage, as well as related ancillary facilities.
16
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
The following table summarizes our investments in unconsolidated affiliates:
|
|
Percentage of |
|
|
Carrying value |
|
|
||||||
|
|
ownership |
|
|
(in thousands) |
|
|
||||||
|
|
September 30, |
|
December 31, |
|
|
September 30, |
|
December 31, |
|
|
||
|
|
2017 |
|
2016 |
|
|
2017 |
|
2016 |
|
|
||
BOSTCO |
|
42.5 |
% |
42.5 |
% |
|
$ |
212,518 |
|
$ |
217,941 |
|
|
Frontera |
|
50 |
% |
50 |
% |
|
|
24,188 |
|
|
23,152 |
|
|
Total investments in unconsolidated affiliates |
|
|
|
|
|
|
$ |
236,706 |
|
$ |
241,093 |
|
|
At September 30, 2017 and December 31, 2016, our investment in BOSTCO includes approximately $7.1 million and $7.2 million, respectively, of excess investment related to a one time buy-in fee to acquire our 42.5% interest and capitalization of interest on our investment during the construction of BOSTCO amortized over the useful life of the assets. Excess investment is the amount by which our investment exceeds our proportionate share of the book value of the net assets of the BOSTCO entity.
Earnings from investments in unconsolidated affiliates were as follows (in thousands):
|
|
Three months ended |
|
Nine months ended |
|
|
||||||||
|
|
September 30, |
|
September 30, |
|
|
||||||||
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
||||
BOSTCO |
|
$ |
923 |
|
$ |
1,885 |
|
$ |
3,904 |
|
$ |
4,794 |
|
|
Frontera |
|
|
961 |
|
|
1,075 |
|
|
2,660 |
|
|
2,146 |
|
|
Total earnings from investments in unconsolidated affiliates |
|
$ |
1,884 |
|
$ |
2,960 |
|
$ |
6,564 |
|
$ |
6,940 |
|
|
Additional capital investments in unconsolidated affiliates were as follows (in thousands):
|
|
Three months ended |
|
Nine months ended |
|
|
||||||||
|
|
September 30, |
|
September 30, |
|
|
||||||||
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
||||
BOSTCO |
|
$ |
— |
|
$ |
— |
|
$ |
145 |
|
$ |
2,125 |
|
|
Frontera |
|
|
— |
|
|
— |
|
|
2,000 |
|
|
100 |
|
|
Additional capital investments in unconsolidated affiliates |
|
$ |
— |
|
$ |
— |
|
$ |
2,145 |
|
$ |
2,225 |
|
|
Cash distributions received from unconsolidated affiliates were as follows (in thousands):
|
|
Three months ended |
|
Nine months ended |
|
|
||||||||
|
|
September 30, |
|
September 30, |
|
|
||||||||
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
||||
BOSTCO |
|
$ |
3,074 |
|
$ |
3,546 |
|
$ |
9,472 |
|
$ |
10,487 |
|
|
Frontera |
|
|
1,127 |
|
|
911 |
|
|
3,624 |
|
|
2,176 |
|
|
Cash distributions received from unconsolidated affiliates |
|
$ |
4,201 |
|
$ |
4,457 |
|
$ |
13,096 |
|
$ |
12,663 |
|
|
17
TransMontaigne Partners L.P. and subsidiaries
Notes to consolidated financial statements (unaudited) (continued)
The summarized financial information of our unconsolidated affiliates was as follows (in thousands):
Balance sheets:
|
|
BOSTCO |
|
Frontera |
|
||||||||
|
|
September 30, |
|
December 31, |
|
September 30, |
|
December 31, |
|
||||
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
||||
Current assets |
|
$ |
21,827 |
|
$ |
23,237 |
|
$ |
8,119 |
|
$ |
5,779 |
|
Long-term assets |
|
|
472,477 |
|
|
485,331 |
|
|
42,603 |
|
|
41,966 |
|
Current liabilities |
|
|
(10,950) |
|
|
(12,799) |
|
|
(2,146) |
|
|
(1,172) |
|
Long-term liabilities |
|
|
— |
|
|
— |
|
|
(200) |
|
|
(269) |
|
Net assets |
|
$ |
483,354 |
|
$ |
495,769 |
|
$ |
48,376 |
|
$ |
46,304 |
|
Statements of operations:
|
|
|
BOSTCO |
|
Frontera |
|
|
||||||||
|
|
|
Three months ended |
|
Three months ended |
|
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
|
||||||||
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
||||
Revenue |
|
|
$ |
16,066 |
|
$ |
17,033 |
|
$ |
5,807 |
|
$ |
5,232 |
|
|
Expenses |
|
|
|
(13,517) |
|
|
(12,178) |
|
|
(3,885) |
|
|
(3,082) |
|
|
Net earnings |
|
|
$ |
2,549 |
|
$ |
4,855 |