PIRAEUS, Greece, Nov. 24, 2014 /PRNewswire/ -- Aegean Marine
Petroleum Network Inc. (NYSE: ANW) ("Aegean" or the "Company")
today announced financial and operating results for the third
quarter ended September
30th, 2014.
Third Quarter Highlights
- Sales volumes of 2,958,882 metric tons.
- Gross profit of $82.6
million.
- Operating income of $4.9
million.
- Net income attributable to Aegean shareholders adjusted for the
sale of non-core assets was $9.4
million or $0.20 basic and
diluted earnings per share.
- Net loss attributable to Aegean shareholders on a GAAP basis
was $4.3 million or $0.09 basic and diluted loss per share.
- EBITDA adjusted for the sale of non-core assets was
$22.7 million.
- Declared an increased dividend of $0.02 for the third quarter.
E. Nikolas Tavlarios, President
of Aegean Marine Petroleum Network, commented, "We believe our
third quarter results demonstrate the strong, sustainable growth
drivers we have in place to deliver long-term growth and
profitability. We have a unique business model that not only allows
Aegean to grow profitability despite macro headwinds and mitigate
industry risks, but also allows us to pursue new pathways to expand
our business. Over the past year, we have successfully integrated
our U.S. East Coast bunkering business and just recently, we
completed our Fujairah storage
facility, which we expect to begin contributing to our financial
results in the first quarter of 2015. We will continue to look for
opportunities to position Aegean to deliver long-term growth for
the benefit of our shareholders."
Mr. Tavlarios continued, "Despite challenges that others in our
industry may be facing, we continue to take decisive actions to
position Aegean Marine for success. Looking ahead, we believe 2015
may be a landmark year for Aegean as we begin to realize the full
benefit of the investments we have made in our U.S. business and
Fujairah storage facility. We are
building considerable momentum across our businesses and are
excited about the many opportunities to continue advancing our
track record of shareholder value creation."
The Company reported net loss attributable to Aegean
shareholders for the three months ended September 30, 2014 of $4.3
million, or $0.09 basic and
diluted loss per share. Net income attributable to Aegean
shareholders excluding a non-cash loss from the sale of non-core
assets was $9.4 million or
$0.20 basic and diluted earnings per
share. For the three months ended September
30, 2013, the Company recorded net income attributable to
Aegean shareholders of $7.3 million,
or $0.16 basic and diluted earnings
per share.
Total revenues for the three months ended September 30, 2014, increased by 13.0% to
$1,809.7 million compared with
$1,602.0 million reported for the
same period in 2013. For the three months ended September 30, 2014, sales of marine petroleum
products increased by 12.6% to $1,791.3
million compared with $1,590.2
million for the same period in 2013. Gross profit, which
equals total revenue less directly attributable cost of revenue
increased by 16.7% to $82.6 million
in the third quarter of 2014 compared with $70.8 million in the same period in 2013.
For the three months ended September 30,
2014, the volume of marine fuel sold by the Company
increased by 18.5% to 2,958,882 metric tons compared with 2,496,457
metric tons in the same period in 2013.
Operating income for the third quarter of 2014, adjusted for the
sale of non-core assets, increased to $18.7
million as compared to $12.4
million, adjusted for the sale of non-core assets for the
same period in 2013. Operating expenses increased by $19.3 million, or 33.0%, to $77.7 million for the three months ended
September 30, 2014, compared with
$58.4 million for the same period in
2013.
Liquidity and Capital Resources
Net cash provided by operating activities was $54.5 million for the three months ended
September 30, 2014. Net income, as
adjusted for non-cash items (as defined in Note 9) was $16.8 million for the period.
Net cash provided by investing activities was $13.2 million for the three months ended
September 30, 2014, mainly due to net
proceeds from the sale of vessels. Net cash used in financing
activities was $54.7 million for the
three months ended September 30,
2014, mainly used in the reduction of short-term
borrowings.
As of September 30, 2014, the
Company had cash and cash equivalents of $117.6 million and working capital of
$226.6 million. Non-cash working
capital, or working capital excluding cash and debt, was
$606.9 million.
As of September 30, 2014, the
Company had $689.6 million in
available liquidity, which includes unrestricted cash and cash
equivalents of $117.6 million and
available undrawn amounts under the Company's working capital
facilities of $572.0 million, to
finance working capital requirements.
The basic and diluted weighted average number of common shares
outstanding for the three months ended September 30, 2014 were 46,318,687. The basic and
diluted weighted average number of common shares outstanding for
the three months ended September 30,
2013 were 45,681,518.
Spyros Gianniotis, Aegean's Chief
Financial Officer, stated, "Our differentiated business model
continues to distinguish our company from the competitive landscape
and generate strong financial results. Our operating strategy
remains focused on maintaining a lean and flexible infrastructure,
which we have achieved through the ongoing divestiture of older,
non-core vessels and the streamlining of expenses."
Mr. Gianniotis concluded, "We are also committed to using our
balance sheet to return cash to our shareholders and have recently
doubled our quarterly dividend and authorized a new $20 million share repurchase program. I
would like to thank our dedicated employees who have been
instrumental in building a solid foundation for our company and
continue to focus on delivering profitable growth for our
shareholders."
|
Summary
Consolidated Financial and Other Data (Unaudited)
|
|
|
|
|
|
|
For the Three
Months Ended
September 30,
|
|
For the Nine
Months Ended
September 30,
|
|
|
2013
|
|
2014
|
|
|
2013
|
|
2014
|
|
|
(in thousands of
U.S. dollars, unless otherwise stated)
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
Revenues - third
parties
|
$
|
1,595,104
|
$
|
1,801,722
|
|
$
|
4,841,082
|
$
|
5,203,859
|
|
Revenues - related
companies
|
|
6,880
|
|
7,977
|
|
|
23,217
|
|
20,418
|
|
Total
revenues
|
|
1,601,984
|
|
1,809,699
|
|
|
4,864,299
|
|
5,224,277
|
|
Cost of
revenues - third parties
|
|
1,323,487
|
|
1,615,070
|
|
|
4,323,548
|
|
4,674,314
|
|
Cost of revenues -
related companies
|
|
207,676
|
|
112,010
|
|
|
329,725
|
|
299,968
|
|
Total cost of
revenues
|
|
1,531,163
|
|
1,727,080
|
|
|
4,653,273
|
|
4,974,282
|
|
Gross
profit
|
|
70,821
|
|
82,619
|
|
|
211,026
|
|
249,995
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution
|
|
51,068
|
|
52,443
|
|
|
150,646
|
|
163,209
|
|
General and
administrative
|
|
6,934
|
|
10,577
|
|
|
21,174
|
|
27,040
|
|
Amortization of
intangible assets
|
|
380
|
|
892
|
|
|
1,130
|
|
2,947
|
|
Loss on sale of
vessels, net
|
|
37
|
|
13,770
|
|
|
3,817
|
|
13,277
|
|
Vessel impairment
charge
|
|
-
|
|
-
|
|
|
-
|
|
4,062
|
|
Operating
income
|
|
12,402
|
|
4,937
|
|
|
34,259
|
|
39,460
|
|
Net financing
cost
|
|
6,497
|
|
8,112
|
|
|
19,733
|
|
25,102
|
|
Gain on sale of
subsidiary, net
|
|
-
|
|
-
|
|
|
(4,174)
|
|
-
|
|
Foreign exchange
(gains)/ losses, net
|
|
(424)
|
|
3,342
|
|
|
(753)
|
|
3,245
|
|
Income tax expense/
(benefit)
|
|
(951)
|
|
(2,192)
|
|
|
(555)
|
|
973
|
|
Net income /
(loss)
|
|
7,280
|
|
(4,325)
|
|
|
20,008
|
|
10,140
|
|
Less income
attributable to non-controlling interest
|
|
(45)
|
|
20
|
|
|
(43)
|
|
66
|
|
Net income
attributable to AMPNI shareholders
|
$
|
7,325
|
$
|
(4,345)
|
|
$
|
20,051
|
$
|
10,074
|
|
Basic earnings per
share (U.S. dollars)
|
$
|
0.16
|
$
|
(0.09)
|
|
$
|
$0.43
|
$
|
$0.21
|
|
Diluted earnings per
share (U.S. dollars)
|
$
|
0.16
|
$
|
(0.09)
|
|
$
|
$0.43
|
$
|
$0.21
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
|
20,099
|
$
|
8,929
|
|
$
|
60,839
|
$
|
59,126
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data:
|
|
|
|
|
|
|
|
|
|
|
Gross spread on
marine petroleum products(2)
|
$
|
65,249
|
$
|
73,578
|
|
$
|
191,695
|
$
|
224,912
|
|
Gross spread on
lubricants(2)
|
|
827
|
|
633
|
|
|
2,982
|
|
2,120
|
|
Gross spread on
marine fuel(2)
|
|
64,422
|
|
72,945
|
|
|
188,713
|
|
222,792
|
|
Gross spread per
metric ton of marine fuel sold
(U.S. dollars) (2)
|
|
25.8
|
|
24.7
|
|
|
25.0
|
|
26.8
|
|
Net cash provided by/
(used in) operating activities
|
$
|
26,062
|
$
|
54,522
|
|
$
|
1,878
|
$
|
(12,311)
|
|
Net cash (used in)/
provided by investing activities
|
|
(7,170)
|
|
13,226
|
|
|
(30,531)
|
|
(33,542)
|
|
Net cash (used in)/
provided by financing activities
|
|
(9,809)
|
|
(54,721)
|
|
|
23,584
|
|
103,430
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volume Data
(Metric Tons): (3)
|
|
|
|
|
|
|
|
|
|
|
Total sales
volumes
|
|
2,496,457
|
|
2,958,882
|
|
|
7,556,685
|
|
8,324,325
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
Number of owned
bunkering tankers, end of period(4)
|
|
53.0
|
|
49.0
|
|
|
53.0
|
|
49.0
|
|
Average number of
owned bunkering tankers(4)(5)
|
|
53.6
|
|
49.4
|
|
|
54.4
|
|
50.8
|
|
Special Purpose
Vessels, end of period(6)
|
|
1.0
|
|
1.0
|
|
|
1.0
|
|
1.0
|
|
Number of operating
storage facilities, end of period(7)
|
|
8.0
|
|
13.0
|
|
|
8.0
|
|
13.0
|
|
Summary
Consolidated Financial and Other Data (Unaudited)
|
|
|
|
As
of
December
31,
2013
|
As
of
September
30,
2014
|
|
|
|
|
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
|
Balance Sheet
Data:
|
|
|
|
Cash and cash
equivalents
|
|
62,575
|
117,583
|
|
Gross trade
receivables
|
|
472,543
|
545,776
|
|
Allowance for
doubtful accounts
|
|
(2,622)
|
(3,380)
|
|
Inventories
|
|
303,297
|
187,965
|
|
Current
assets
|
|
896,730
|
935,967
|
|
Total
assets
|
|
1,616,185
|
1,661,776
|
|
Trade
payables
|
|
241,743
|
182,149
|
|
Current liabilities
(including current portion of long-term debt)
|
|
652,277
|
709,362
|
|
Total debt
|
|
783,317
|
892,938
|
|
Total
liabilities
|
|
1,072,439
|
1,103,824
|
|
Total
equity
|
|
543,746
|
557,942
|
|
|
|
|
|
Working Capital
Data:
|
|
|
|
|
Working
capital(8)
|
|
244,453
|
226,605
|
|
Working capital
excluding cash and debt(8)
|
|
541,919
|
606,933
|
|
|
|
|
|
Notes:
|
|
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 September 30,
|
|
2013
|
2014
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
|
Net income
attributable to AMPNI shareholders
|
7,325
|
(4,345)
|
|
|
|
|
Add: Net financing cost
including amortization of financing costs
|
6,497
|
8,112
|
|
Add/(Less):
Income tax expense/(income)
|
(951)
|
(2,192)
|
|
Add:
Depreciation and amortization excluding amortization of financing
costs
|
7,228
|
7,354
|
|
|
|
|
EBITDA
|
20,099
|
8,929
|
|
|
|
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 MGO
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
customer. For 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
September 30,
|
|
|
2013
|
|
2014
|
|
|
|
|
Sales of marine
petroleum products
|
1,590,161
|
|
1,791,261
|
|
|
Less: Cost of marine
petroleum products sold
|
(1,524,912)
|
|
(1,717,683)
|
|
|
Gross spread on
marine petroleum products
|
65,249
|
|
73,578
|
|
|
Less: Gross spread on
lubricants
|
(827)
|
|
633
|
|
|
Gross spread on
marine fuel
|
64,422
|
|
72,945
|
|
|
|
|
|
|
|
Sales volume of
marine fuel (metric tons)
|
2,496,457
|
|
2,958,882
|
|
|
|
|
|
|
|
Gross spread per
metric ton of marine
fuel sold (U.S.
dollars)
|
25.8
|
|
24.7
|
|
|
|
|
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 use the sales volume of lubricants as an
indicator.
|
|
|
|
The Company's markets
include its physical supply operations in the United Arab Emirates,
Gibraltar, Jamaica, Singapore, Northern Europe, Vancouver, Portland
(U.K.), Trinidad and Tobago (Southern Caribbean), Tangiers
(Morocco), Las Palmas, Tenerife, Panama, Hong Kong, Barcelona,
Algeciras, US East Coast and Greece, where the Company conducts
operations through its related company, Aegean Oil.
|
|
|
|
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 uses a
barge, the Mediterranean, as a floating storage facility in Greece
and a small tanker, the Tapuit, as a floating storage facility in
Northern Europe. The Company also operates on-land storage
facilities in Portland, Las Palmas, Tangiers, Panama, U.S.A. and
Barcelona.
|
|
|
|
The ownership of
storage facilities allows the Company to mitigate its risk of
supply shortages. Generally, storage costs are included in the
price of refined marine fuel quoted by local suppliers. The Company
expects that the ownership of storage facilities will allow it to
convert the variable costs of this storage fee mark-up per metric
ton quoted by suppliers into fixed costs of operating its owned
storage facilities, thus enabling the Company to spread larger
sales volumes over a fixed cost base and to decrease its refined
fuel costs.
|
|
|
|
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.
|
|
|
Third Quarter Dividend Announcement
On
November 24, 2014, the Company's
Board of Directors declared a third quarter 2014 dividend of
$0.02 per share payable on
December 22, 2014 to shareholders of
record as of December 8, 2014. The
dividend amount was determined in accordance with the Company's
dividend policy of paying cash dividends on a quarterly basis
subject to factors including the requirements of Marshall Islands law, future earnings, capital
requirements, financial condition, future prospects and such other
factors as are determined by the Company's Board of Directors. The
Company anticipates retaining most of its future earnings, if any,
for use in operations and business expansion.
Conference Call and Webcast Information
Aegean Marine
Petroleum Network Inc. will conduct a conference call and
simultaneous Internet webcast on Tuesday,
November 25, 2014 at 8:30 a.m.
Eastern Time, to discuss its third quarter results.
Investors may access the webcast and related slide presentation, by
visiting the Company's website at www.ampni.com, and clicking on
the webcast link. The conference call also may be accessed via
telephone by dialing (888) 430-8705 (for U.S.-based callers) or
(719) 325-2323 (for international callers) and enter the passcode:
6995289.
A replay of the webcast will be available soon after the
completion of the call and will be accessible on www.ampni.com. A
telephone replay will be available through December 9, 2014 by dialing (888) 203-1112 or
(for U.S.-based callers) or (719) 457-0820 (for international
callers) and enter the passcode: 6995289.
About Aegean Marine Petroleum Network Inc.
Aegean Marine Petroleum Network Inc. is an international marine
fuel logistics company that markets and physically supplies refined
marine fuel and lubricants to ships in port and at sea. The Company
procures product from various sources (such as refineries, oil
producers, and traders) and resells it to a diverse group of
customers across all major commercial shipping sectors and leading
cruise lines. Currently, Aegean has a global presence in 27
markets, including Vancouver,
Montreal, Mexico, Jamaica, Trinidad
and Tobago, Gibraltar,
U.K., Northern Europe, Piraeus,
Patras, the United Arab Emirates,
Singapore, Morocco, the Antwerp-Rotterdam-Amsterdam (ARA) region, Las Palmas, Tenerife, Panama, Hong
Kong, Barcelona, US East
Coast and Algeciras. The Company has also entered into a strategic
alliance to extend its global reach to China. To learn more about Aegean, visit
http://www.ampni.com.
Cautionary Statement Regarding Forward-Looking
Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and is including this cautionary statement in connection with this
safe harbor legislation. The words "believe," "intend,"
"anticipate," "estimate," "project," "forecast," "plan,"
"potential," "may," "should," "expect" and similar expressions
identify forward-looking statements. The forward-looking statements
in this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including
without limitation, our management's examination of historical
operating trends, data contained in our records and other data
available from third parties. Although we believe that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors
that, in our view, could cause actual results to differ materially
from those discussed in the forward-looking statements include our
ability to manage growth, our ability to maintain our business in
light of our proposed business and location expansion, our ability
to obtain double hull secondhand bunkering tankers, the outcome of
legal, tax or regulatory proceedings to which we may become a
party, adverse conditions in the shipping or the marine fuel supply
industries, our ability to retain our key suppliers and key
customers, material disruptions in the availability or supply of
crude oil or refined petroleum products, changes in the market
price of petroleum, including the volatility of spot pricing,
increased levels of competition, compliance or lack of compliance
with various environmental and other applicable laws and
regulations, our ability to collect accounts receivable, changes in
the political, economic or regulatory conditions in the markets in
which we operate, and the world in general, our failure to hedge
certain financial risks associated with our business, our ability
to maintain our current tax treatments and our failure to comply
with restrictions in our credit agreements and other factors.
Please see our filings with the Securities and Exchange Commission
for a more complete discussion of these and other risks and
uncertainties.
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SOURCE Aegean Marine Petroleum Network Inc.