AEGEAN MARINE PETROLEUM NETWORK INC.
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(registrant)
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Dated: March 16, 2016
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By:
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/s/ E. Nikolas Tavlarios
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Name:
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E. Nikolas Tavlarios
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Title:
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President
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· | Recorded sales volumes of 4,029,567 metric tons in Q4 2015 and 13,482,478 metric tons for the full year. |
· | Achieved gross profit of $88.3 million in Q4 and $331.8 million for the full year. |
· | Generated operating income of $24.1 million in Q4. |
· | Recorded net income attributable to Aegean shareholders of $9.7 million or $0.20 basic and diluted earnings per share for the fourth quarter and $35.9 million or $0.73 basic and diluted earnings per share for the full year. |
o | Net income adjusted for gains/losses on sales of assets, impairment charges and a non-cash tax item amounting to $2.4 million was $12.1 million or $0.25 basic and diluted earnings per share for the fourth quarter and $43.7 million or $0.89 basic and diluted earnings per share for the full year |
· | Generated EBITDA of $32.8 million in Q4 and $110.8 million for the full year. |
o | Full year EBITDA adjusted for gains/losses on sales of assets and impairment charges was $116.2 million. |
· | Commenced operations in Rio de Janeiro, Brazil. |
· | Increased percentage of blended products sold. |
· | Completed the closure of Portland terminal as part of cost rationalization strategy. |
· | Continued to cultivate relationships with key customers and suppliers. |
· | Revenue – The Company reported total revenue of $929.1 million for Q4 2015, a decrease of 35.4%, compared to the same period in 2014 due to the drop in oil prices. Voyage and other revenues decreased to $16.2 million or by 3.0% compared to the same period in 2014. |
· | Gross profit – Gross Profit, which equals total revenue less directly attributable cost of revenue increased by 1.4% to $88.3 million in the fourth quarter of 2015 compared to $87.1 million in the same period in 2014. Gross Profit for the full year was $331.8 million which was in-line with the prior year's results. |
· | Operating Expense – The Company reported operating expense of $64.2 million, a decrease of $4.4 million or 6.4% compared to the same period in prior year. Operating Expenses for the full year 2015 were $255.3 million, a decrease of 8.6% or $23.9 million compared to prior year. |
· | Operating Income – Operating income for Q4 was $24.1 million, an increase of 30.3% compared to the same period in prior year. Operating income for the full year was $76.6 million, an increase of 32.3% or $18.7 million over the same period in 2014. Full year operating income adjusted for losses on sale of assets/impairment charges was $82.0 million. |
· | Net Income – The Company achieved net income attributable to Aegean shareholders for the three months ended December 31, 2015 of $9.7 million, or $0.20 basic and diluted earnings per share an increase of $2.2 million or 29.2% compared to the same period in 2014. Net income for the full year was $35.9 million or $0.73 basic and diluted earnings per share. Net income adjusted for gains/losses on sales of assets, impairment charges and a non-cash tax item amounting to $2.4 million was $12.1 million or $0.25 basic and diluted earnings per share for the fourth quarter and $43.7 million or $0.89 basic and diluted earnings per share for the full year. |
· | Sales Volume – For the three months ended December 31, 2015, the Company reported record marine fuel sales volumes of 4,029,567 metric tons an increase of 34.0% compared with the same period in 2014. Marine fuel sales volume excluding bulk trading was 3,439,966 metric tons, an increase of 14.4% compared with the same period in 2014. |
· | EBITDA Per Metric Ton – For the three months ended December 31, 2015, the Company reported EBITDA per metric ton sold of $8.14. EBITDA per metric ton in the prior year period was $8.56 per metric ton. |
· | Gross Spread Per Metric Ton – For the three months ended December 31, 2015, the Company reported gross spread per metric ton on an aggregate basis of $20.5 per metric ton. Gross spread per metric ton in the prior year period was $26.2 per metric ton. |
· | Net cash provided by operating activities was $5.3 million for the three months ended December 31, 2015. Net income, as adjusted for non-cash items (as defined in Note 9 below) was $14.9 million for the period. |
· | Net cash provided from investing activities was $0.6 million for the three months ended December 31, 2015, primarily due to the release of restricted cash. |
· | Net cash provided by financing activities was $19.2 million for the three months ended December 31, 2015. |
· | As of December 31, 2015, the Company had cash and cash equivalents of $139.3 million and working capital of $341.8 million. Non-cash working capital, or working capital excluding cash and debt, was $477.6 million. |
· | As of December 31, 2015, the Company had $937.2 million undrawn amounts under its working capital facilities and $139.3 million of unrestricted cash and cash equivalents to finance working capital requirements. |
· | The weighted average basic and diluted shares outstanding for the three months ended December 31, 2015 was 47,436,366. The weighted average basic and diluted shares outstanding for the three months ended December 31, 2014 was 46,336,307 respectively. |
For the Three Months Ended December 31,
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For the Year Ended
December 31,
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|||||||||||||||
2014
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2015
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2014
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2015
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(in thousands of U.S. dollars, unless otherwise stated)
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||||||||||||||||
Income Statement Data:
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||||||||||||||||
Revenues - third parties
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$
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1,421,385
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$
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924,227
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$
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6,625,244
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$
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4,213,359
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||||||||
Revenues - related companies
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16,139
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4,872
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36,557
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20,058
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||||||||||||
Total revenues
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1,437,524
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929,099
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6,661,801
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4,233,417
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Cost of revenues - third parties
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1,297,505
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822,602
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5,971,819
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3,764,684
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||||||||||||
Cost of revenues - related companies
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52,920
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18,180
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352,888
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136,904
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||||||||||||
Total cost of revenues
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1,350,425
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840,782
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6,324,707
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3,901,588
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Gross profit
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87,099
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88,317
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337,094
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331,829
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Operating expenses:
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Selling and distribution
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57,621
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52,033
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220,830
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205,078
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General and administrative
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11,059
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11,859
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38,099
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43,318
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||||||||||||
Amortization of intangible assets
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376
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298
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3,323
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1,421
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||||||||||||
(Gain) / Loss on sale of vessels, net
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(413
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)
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-
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12,864
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130
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Impairment charge
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-
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-
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4,062
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5,308
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||||||||||||
Operating income
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18,456
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24,127
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57,916
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76,574
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||||||||||||
Net financing cost
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(8,679
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)
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(9,949
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)
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(33,781
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)
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(37,556
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)
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Foreign exchange (loss) / gain, net
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(2,787
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)
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(291
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)
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(6,032
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)
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308
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|||||||||
Income taxes benefit / (expense)
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509
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(4,176
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)
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(464
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)
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(3,446
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)
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Net income
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7,499
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9,711
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17,639
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35,880
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Less income attributable to non-controlling interest
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(17
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)
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-
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49
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-
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Net income attributable to AMPNI shareholders
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$
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7,516
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$
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9,711
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$
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17,590
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$
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35,880
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Basic earnings per share (U.S. dollars)
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$
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0.16
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$
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0.20
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$
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$0.37
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$
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0.73
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Diluted earnings per share (U.S. dollars)
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$
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0.16
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$
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0.20
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$
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$0.37
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$
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0.73
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EBITDA(1)
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$
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22,894
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$
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32,797
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$
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82,019
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$
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110,806
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Other Financial Data:
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Gross spread on marine petroleum products(2)
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$
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79,633
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$
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84,243
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$
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304,545
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$
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302,052
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Gross spread on lubricants(2)
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828
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1,776
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2,948
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5,210
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Gross spread on marine fuel(2)
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78,805
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82,467
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301,597
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296,842
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Gross spread per metric ton of marine fuel sold (U.S. dollars) (2)
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26.2
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20.5
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26.6
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22.0
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Net cash provided by operating activities
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194,517
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5,273
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182,206
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49,727
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Net cash (used in) / provided by investing activities
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(25,952
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)
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588
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(59,494
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)
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(7,614
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)
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Net cash (used in) / provided by financing activities
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$
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(153,710
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)
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$
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19,243
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$
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(50,280
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)
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$
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(28,254
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)
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Sales Volume Data (Metric Tons): (3)
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Total sales volumes
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3,008,060
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4,029,567
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11,332,385
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13,482,478
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Other Operating Data:
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Number of owned bunkering tankers, end of period(4)
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48.0
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49.0
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48.0
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49.0
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Average number of owned bunkering tankers(4)(5)
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48.4
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49.0
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50.2
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48.8
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Special Purpose Vessels, end of period (6)
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1.0
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1.0
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1.0
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1.0
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Number of operating storage facilities, end of period(7)
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14.0
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12.0
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14.0
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12.0
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As of
December 31,
2014
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As of
December 31,
2015
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(in thousands of U.S. dollars,
unless otherwise stated)
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Balance Sheet Data:
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Cash and cash equivalents
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129,551
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139,314
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Gross trade receivables
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360,074
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317,152
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||||||
Allowance for doubtful accounts
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(5,851
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)
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(7,843
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)
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Inventories
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156,990
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114,531
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||||||
Current assets
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736,328
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730,950
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||||||
Total assets
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1,488,315
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1,456,656
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||||||
Trade payables
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119,056
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72,417
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||||||
Current liabilities (including current portion of long-term debt)
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533,735
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389,109
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||||||
Total debt
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740,880
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716,660
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||||||
Total liabilities
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920,899
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835,130
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||||||
Total stockholder's equity
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567,416
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621,526
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||||||
Working Capital Data:
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Working capital(8)
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202,593
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341,841
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||||||
Working capital excluding cash and debt(8)
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428,326
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477,594
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||||||
1. | EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of EBITDA may not be comparable to that recorded by other companies. EBITDA is included herein because it is a basis upon which the Company assesses its operating performance and because the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness. The following table reconciles net income to EBITDA for the periods presented: |
For the Three Months Ended December 31,
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||||||||
2014
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2015
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|||||||
(in thousands of U.S. dollars,
unless otherwise stated)
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||||||||
Net income attributable to AMPNI shareholders
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7,516
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9,711
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||||||
Add: Net financing cost including amortization of financing costs
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8,679
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9,949
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||||||
Add: Income tax (benefit) / expense
|
(509
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)
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4,176
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|||||
Add: Depreciation and amortization excluding amortization of financing costs
|
7,208
|
8,961
|
||||||
EBITDA
|
22,894
|
32,797
|
2. | Gross spread on marine petroleum products represents the margin the Company generates on sales of marine fuel and lubricants. Gross spread on marine fuel represents the margin that the Company generates on sales of various classifications of marine fuel oil ("MFO") or marine gas oil ("MGO"). Gross spread on lubricants represents the margin that the Company generates on sales of lubricants. Gross spread on marine petroleum products, gross spread of MFO and gross spread on lubricants are not items recognized by U.S. GAAP and should not be considered as an alternative to gross profit or any other indicator of a Company's operating performance required by U.S. GAAP. The Company's definition of gross spread may not be the same as that used by other companies in the same or other industries. The Company calculates the above-mentioned gross spreads by subtracting from the sales of the respective marine petroleum product the cost of the respective marine petroleum product sold and cargo transportation costs. For arrangements in which the Company physically supplies the respective marine petroleum product using its bunkering tankers, costs of the respective marine petroleum products sold represents amounts paid by the Company for the respective marine petroleum product sold in the relevant reporting period. For arrangements in which the respective marine petroleum product is purchased from the Company's related company, Aegean Oil S.A., or Aegean Oil, cost of the respective marine petroleum products sold represents the total amount paid by the Company to the physical supplier for the respective marine petroleum product and its delivery to the custom arrangements, in which the Company purchases cargos of marine fuel for its floating storage facilities. Transportation costs may be included in the purchase price of marine fuels from the supplier or may be incurred separately from a transportation provider. Gross spread per metric ton of marine fuel sold represents the margin the Company generates per metric ton of marine fuel sold. The Company calculates gross spread per metric ton of marine fuel sold by dividing the gross spread on marine fuel by the sales volume of marine fuel. Marine fuel sales do not include sales of lubricants. The following table reflects the calculation of gross spread per metric ton of marine fuel sold for the periods presented: |
For the Three Months Ended December 31,
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||||||||
2014
|
2015
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|||||||
Sales of marine petroleum products
|
1,420,811
|
912,890
|
||||||
Less: Cost of marine petroleum products sold
|
(1,341,178
|
)
|
(828,647
|
)
|
||||
Gross spread on marine petroleum products
|
79,633
|
84,243
|
||||||
Less: Gross spread on lubricants
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(828
|
)
|
(1,776
|
)
|
||||
Gross spread on marine fuel
|
78,805
|
82,467
|
||||||
Sales volume of marine fuel (metric tons)
|
3,008,060
|
4,029,567
|
||||||
Gross spread per metric ton of marine fuel sold (U.S. dollars)
|
26.2
|
20.5
|
3. | Sales volume of marine fuel is the volume of sales of various classifications of MFO and MGO for the relevant period and is denominated in metric tons. The Company does not include the sales volume of lubricants in the calculation of gross spread per metric ton of marine fuel sold. |
4. | Bunkering fleet comprises both bunkering vessels and barges. |
5. | Figure represents average bunkering fleet number for the relevant period, as measured by the sum of the number of days each bunkering tanker or barge was used as part of the fleet during the period divided by the cumulative number of calendar days in the period multiplied by the number of bunkering tankers at the end of the period. This figure does not take into account non-operating days due to either scheduled or unscheduled maintenance. |
6. | Special Purpose Vessels consists of the Orion, a 550 dwt tanker which is based in our Greek market. |
7. | The Company owns one barge, the Mediterranean, as a floating storage facility in Greece. The Company also operates on-land storage facilities in Las Palmas, Fujairah, Tangiers, Panama, U.S.A., Hamburg and Barcelona. |
8. | Working capital is defined as current assets minus current liabilities. Working capital excluding cash and debt is defined as current assets minus cash and cash equivalents minus restricted cash minus current liabilities plus short-term borrowings plus current portion of long-term debt. |
9. | Net income as adjusted for non-cash items, such as depreciation, provision for doubtful accounts, restricted stock, amortization, deferred income taxes, loss on sale of vessels, net, impairment losses, unrealized loss/(gain) on derivatives and unrealized foreign exchange loss/(gain), net, is used to assist in evaluating our ability to make quarterly cash distributions. Net income as adjusted for non-cash items is not recognized by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company's performance required by accounting principles generally accepted in the United States. |