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Media - The Forum on Supply Chain Risk + Compliance Management 2016

PBF Logistics LP announced second quarter 2016 net income of $16.3 million

PARSIPPANY, N.J., July 29, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") announced today second quarter 2016 net income of $16.3 million, or $0.41 per common unit. During the second quarter, the Partnership generated cash from operations of approximately $17.0 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $26.0 million and distributable cash flow of $20.0 million. Included in our general and administrative expenses for the second quarter are $3.5 million, or $0.10 per common unit, of transaction expenses related to the acquisition of four refined products terminals (the "East Coast Terminals") from an affiliate of Plains All American Pipeline L.P. and expenses related to unit-based compensation in conjunction with a senior executive retirement.

"During the second quarter our assets performed well and, with the completion of the East Coast Terminals acquisition in April, we increased our asset base and introduced third-party revenue to our growing business. The integration of the East Coast Terminals into our legacy East Coast assets went well and we have commenced the necessary infrastructure investments to expand the East Coast Terminals and generate additional revenue," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. "We are pleased that the board of directors has approved an increase in our quarterly distribution to $0.43 per common unit. We look forward to continuing to execute our growth strategy for the Partnership and create additional value for our unitholders."

As of June 30, 2016, the Partnership had approximately $315 million of liquidity, including $49.9 million in cash and cash equivalents and access to approximately $265 million under its existing revolving credit facility. The Partnership intends to use its financial resources to fund organic growth projects at the Partnership and future drop-down and third-party acquisitions.

PBF Logistics Announces Increased Quarterly Distribution

The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.43 per common unit. The distribution is payable on August 23, 2016, to unitholders of record at the close of business on August 9, 2016.

This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

Non-GAAP Financial Measures

This earnings release, and the discussion during the management conference call, may include references to non-GAAP financial measures including, but not limited to, EBITDA and distributable cash flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBFX's non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP financial measures used in this release and reconciliations to the most directly comparable GAAP measures.

Conference Call Information

The Partnership's senior management will host a conference call and webcast regarding quarterly results and other business matters on Friday, July 29, 2016, at 11:00 a.m. ET. The call can also be heard by dialing (888) 632-3381 or (785) 424-1678, conference ID: PBFXQ216. The audio replay will be available two hours after the end of the call through August 14, 2016, by dialing (800) 753-5575 or (402) 220-0683. The call is being webcast and can be accessed on the Partnership's website,

Forward-Looking Statements

This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including the Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.

PBF Logistics LP

PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.

Results of Operations (Unaudited)

Factors Affecting Comparability

The following tables present our results of operations, related operational information, and a reconciliations of net income and net cash provided by operating activity to EBITDA and distributable cash flows (both as defined below) of PBFX for the three and six months ended June 30, 2016 and 2015.  The financial information presented contains the financial results of PBFX and the Delaware City Products Pipeline and Truck Rack prior to its acquisition by PBFX on May 14, 2015. The Delaware City Products Pipeline and Truck Rack include a products pipeline (the "Delaware City Products Pipeline"), truck rack and related facilities located at PBF Energy's Delaware city refinery. The Delaware City Products Pipeline and Truck Rack were acquired from subsidiaries of our indirect parent company, PBF Energy Inc. ("PBF Energy"). The results of the Delaware City Products Pipeline and Truck Rack are included in the Transportation and Terminaling segment.

The Delaware City Products Pipeline was the only asset that recorded revenue for transactions with PBF Energy prior to our acquisition of the Delaware City Products Pipeline and Truck Rack from PBF Energy Company LLC ("PBF LLC"). Affiliate revenues have been recorded for the Delaware City Products Pipeline and Truck Rack subsequent to the commencement of the commercial agreements with PBF Energy.

On April 29, 2016, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), purchased four refined product terminals (the "East Coast Terminals"), including a storage facility to service the East Coast Terminals, from an affiliate of Plains All American Pipeline, L.P. (the "Plains Asset Purchase") which has subsequently generated third party revenues. Prior to the Plains Asset Purchase, we did not record third-party revenue, except for third party revenue generated by the Delaware Pipeline Company ("DPC") from charging fees for transporting refined products pursuant to an agreement with Morgan Stanley Capital Group Inc. prior to August 2013. Additionally, our results may not be comparable due to additional revenue, operating and maintenance expense and general and administrative expense associated with the East Coast Terminals.

As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.

Non-GAAP Financial Measures

We define EBITDA as net income (loss) before interest expense, income tax expense, depreciation and amortization expense. We define distributable cash flow as EBITDA plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. Distributable cash flow and EBITDA are not financial measures prescribed by U.S. generally accepted accounting principles ("GAAP").

While EBITDA and distributable cash flow are not financial measures prescribed by U.S. GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

  • our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
  • the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
  • our ability to incur and service debt and fund capital expenditures; and
  • the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities.

We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP.

These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.

Source:  PBF Logistics


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