PBF Logistics LP

10/29/2020 | Press release | Distributed by Public on 10/29/2020 04:32

PBF Logistics Declares Quarterly Distribution of $0.30 per Unit and Announces Third Quarter 2020 Earnings Results

PARSIPPANY, N.J., Oct. 29, 2020 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) (the 'Partnership') today announced third quarter 2020 net income attributable to the limited partners of $44.2 million, or $0.71 per common unit. During the quarter, the Partnership generated cash from operations of $61.7 million, EBITDA attributable to PBFX of $59.3 million, Adjusted EBITDA of $60.5 million and distributable cash flow of $48.5 million. Included in reported results for the third quarter are $1.2 million, or $0.02 per common unit, of non-cash unit-based compensation expense and continued environmental remediation costs associated with the East Coast Terminals. Also included in results for the third quarter is a $4.7 million, or $0.7 per common unit, net gain to the Partnership as a result of a contract termination at one of its storage facilities. This includes a gain on the change in contingent consideration, offset by impairment expense and acceleration of depreciation and amortization on the applicable assets.

'Our focus during the third quarter continued to be on the health and safety of our employees and operations. We continuously monitored the effectiveness of our enhanced safety protocols to ensure the well-being of our employees while continuing uninterrupted service to our customers. Our strong contracted minimum volume commitments and base-load regional demand have continued to provide stable support for our business,' said PBF Logistics GP LLC Executive Vice President Matt Lucey. 'We announced a distribution of $0.30 per unit today and continued to reduce leverage during the third quarter. Going forward, we intend to remain conservative in our capital allocation and focus on strengthening the balance sheet.'

As of September 30, 2020, the Partnership had approximately $310.0 million of liquidity, including approximately $27.9 million in cash and cash equivalents, and access to approximately $282.1 million under its revolving credit facility.

PBF Logistics Declares Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.30 per common unit. The distribution is payable on November 30, 2020, to unitholders of record at the close of business on November 16, 2020.

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
The Partnership defines EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions and earnings attributable to the CPI earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI Operations LLC ('CPI'), (the 'Contingent Consideration')). The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. The Partnership defines distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ('GAAP').

For additional information on the Partnership's non-GAAP financial measures, including reconciliations to their most directly comparable financial measures calculated and presented in accordance with GAAP, refer to the supplemental information provided in 'Results of Operations' and the Earnings Release Tables included herein.

Conference Call Information
The Partnership will host a conference call and webcast regarding quarterly results and other business matters on Thursday, October 29, 2020, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 876-9173 or (785) 424-1667, conference ID: PBFXQ320. The audio replay will be available two hours after the end of the call through November 12, 2020, by dialing (800) 753-4606 or (402) 220-2103.

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, the possibility that the Partnership may not consummate any potential future acquisitions, the Partnership's plans for financing any potential future acquisitions, the duration and severity of the COVID-19 pandemic, 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 its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. 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)

Business Developments

COVID-19

The outbreak of the coronavirus disease 2019 ('COVID-19') pandemic continues to negatively impact worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products. The COVID-19 pandemic and resulting governmental and consumer responses have also resulted in significant business and operational disruptions, including business and school closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. Such impacts have resulted in revenue declines due to lower demand and throughput volumes across certain of our facilities, which may continue to affect our business for the foreseeable future. In response to the COVID-19 pandemic, we are taking steps to mitigate potential adverse impacts on our business and operations by limiting capital expenditures, reducing discretionary activities and third-party services and lowering our quarterly distribution to our minimum quarterly distribution of $0.30 per unit. This distribution reduction, effective with the distribution for the first quarter of 2020 that was paid on June 17, 2020, represents a strategic shift to build our cash flow coverage, de-lever our business and increase our financial resources as we continue to identify potential organic growth projects or strategic acquisitions. In addition, our parent sponsor and largest customer, PBF Energy Inc., has endeavored to take the necessary steps to preserve liquidity and solidify its operations under the adverse market conditions caused by the COVID-19 pandemic.

The full extent to which the COVID-19 pandemic impacts our business and operations, or that of our parent sponsor, is unknown and will depend on the severity, location and duration of the effects and spread of COVID-19, the actions undertaken by national, regional and local governments and health officials to contain the virus or treat its effects, related consumer responses and how quickly and to what extent economic conditions improve and normal business and operating conditions resume.

Factors Affecting Comparability

The following tables present our results of operations, related operational information and reconciliations of net income and net cash provided by operating activities to our EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow (each as defined below) for the three and nine months ended September 30, 2020 and 2019.

On October 1, 2018, we acquired from Crown Point International, LLC, its wholly-owned subsidiary, CPI Operations LLC ('CPI'), whose assets include a storage facility with multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and certain other idled assets (the 'East Coast Storage Assets') located on the Delaware River near Paulsboro, New Jersey (the 'East Coast Storage Assets Acquisition'). In connection with the acquisition, the purchase and sale agreement included an earn-out provision related to an existing commercial agreement with a third party, based on the future results of certain of the acquired idled assets, which recommenced operations in October 2019. Pursuant to the terms of the commercial agreement, in the third quarter of 2020, the counterparty exercised its right to terminate the contract at the conclusion of the current contract year, resulting in an adjustment to the contingent consideration (as defined below). In addition, as a result of the contract termination, we recorded an impairment charge to write-down the related processing unit assets and customer contract intangible asset of $3.0 million and $4.0 million, respectively. The impairment charge represents a write-down of the CPI assets due to the reduction of future earnings as a result of the contract termination. The fair values of the assets were determined using the income approach and was based on the expected undiscounted future net cash flows over the remaining contractual period.

On April 24, 2019, we entered into a Contribution Agreement with PBF Energy Company LLC ('PBF LLC'), pursuant to which PBF LLC contributed to us all of the issued and outstanding limited liability company interests of TVP Holding Company LLC ('TVP Holding'), which held the remaining 50% equity interest in Torrance Valley Pipeline Company LLC ('TVPC'), for total consideration of $200.0 million (the 'TVPC Acquisition'). Subsequent to the closing of the TVPC Acquisition on May 31, 2019, we own 100% of the equity interest in TVPC.

On April 24, 2019, we entered into subscription agreements to sell an aggregate of 6,585,500 common units to certain institutional investors in a registered direct public offering (the '2019 Registered Direct Offering') for gross proceeds of approximately $135.0 million. The 2019 Registered Direct Offering closed on April 29, 2019.

In addition, our results in the current year have been negatively affected by the impact of the COVID-19 pandemic on our business, including lower throughput volumes at our terminals, as the industry reacts to the related economic downturn and volatile commodity markets.

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 net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions and earnings attributable to the CPI earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI (the 'Contingent Consideration')). We define Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX 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 calculated by dividing distributable cash flow by our total distribution declared. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ('GAAP').

While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed 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 economic returns on various investment opportunities.

We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. 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 and it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.

EBITDA, EBITDA attributable to PBFX, Adjusted 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. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.

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.

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except unit and per unit data)





Three Months Ended

September 30,


Nine Months Ended

September 30,

2020


2019


2020


2019

Revenue (a):









Affiliate

$

70,716



$

78,026



$

218,681



$

224,014



Third-party

18,294



8,351



52,487



23,958


Total revenue

89,010



86,377



271,168



247,972










Costs and expenses:









Operating and maintenance expenses (a)

22,730



28,356



75,385



86,825



General and administrative expenses

4,112



4,552



12,798



18,142



Depreciation and amortization

14,305



9,079



36,821



26,654



Impairment expense

7,000



-



7,000



-



Change in contingent consideration

(14,765)



-



(14,235)



-


Total costs and expenses

33,382



41,987



117,769



131,621










Income from operations

55,628



44,390



153,399



116,351










Other expense:









Interest expense, net

(10,544)



(12,230)



(33,929)



(34,359)



Amortization of loan fees and debt premium

(328)



(444)



(1,309)



(1,339)



Accretion on discounted liabilities

(594)



(722)



(1,726)



(2,255)


Net income

44,162



30,994



116,435



78,398



Less: Net income attributable to noncontrolling interest (g)

-



-



-



7,881


Net income attributable to PBF Logistics LP unitholders

$

44,162



$

30,994



$

116,435



$

70,517










Net income per limited partner unit (h):









Common units - basic

$

0.71



$

0.50



$

1.87



$

1.23



Common units - diluted

0.71



0.50



1.87



1.23










Weighted-average limited partner units outstanding (h):









Common units - basic

62,519,105



62,361,974



62,424,217



57,314,382



Common units - diluted

62,529,489



62,460,669



62,429,475



57,385,166










See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION

(Unaudited, amounts in thousands except barrel and per unit data)













Three Months Ended

September 30,


Nine Months Ended

September 30,



2020


2019


2020


2019

Transportation and Terminaling Segment










Terminals











Total throughput (barrels per day ('bpd')) (b)(d)


199,139



334,340



240,159



287,027




Lease tank capacity (average lease capacity barrels per month) (d)


2,587,334



2,088,044



2,343,637



2,229,890



Pipelines











Total throughput (bpd) (b)(d)


143,273



165,757



153,909



158,307




Lease tank capacity (average lease capacity barrels per month) (d)


1,123,864



1,388,849



1,144,915



1,355,645












Storage Segment











Storage capacity reserved (average shell capacity barrels per month) (d)


7,687,505



8,033,679



7,634,264



8,006,785




Total throughput (bpd) (b)(d)


21,835



-



24,704



-










Cash Flow Information:









Net cash provided by (used in):











Operating activities


$

61,741



$

39,757



$

141,429



$

95,643




Investing activities


(1,763)



(8,028)



(9,635)



(23,180)




Financing activities


(53,695)



849



(138,909)



(39,793)





Net change in cash and cash equivalents


$

6,283



$

32,578



$

(7,115)



$

32,670










Other Financial Information:









EBITDA attributable to PBFX (c)

$

59,281



$

53,469



$

174,457



$

132,825



Adjusted EBITDA (c)

$

60,519



$

55,451



$

178,459



$

146,744



Distributable cash flow (c)

$

48,486



$

39,538



$

136,233



$

99,074



Quarterly distribution declared per unit (e)

$

0.3000



$

0.5200



$

0.9000



$

1.5450



Distributions (e):










Common units

$

18,848



$

32,709



$

56,541



$

97,188





Total distributions

$

18,848



$

32,709



$

56,541



$

97,188





Coverage ratio (c)

2.57x



1.21x



2.41x



1.02x



Capital expenditures

$

1,763



$

8,028



$

9,635



$

23,180












See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION (continued)

(Unaudited, in thousands)



September 30,


December 31,

Balance Sheet Information:


2020


2019


Cash and cash equivalents (f)

$

27,851



$

34,966



Property, plant and equipment, net

829,832



854,610



Total assets

941,767



973,002



Total debt (f)

733,414



802,104



Total liabilities

788,211



867,919



Partners' equity

153,556



105,083



Total liabilities and equity

941,767



973,002






See Footnotes to Earnings Release Tables











PBF LOGISTICS LP

EARNINGS RELEASE TABLES

RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP

TO EBITDA AND DISTRIBUTABLE CASH FLOW

(Unaudited, in thousands)









Three Months Ended

September 30,


Nine Months Ended

September 30,

2020


2019


2020


2019

Reconciliation of net income to EBITDA and distributable cash flow (c):









Net income

$

44,162



$

30,994



$

116,435



$

78,398




Interest expense, net

10,544



12,230



33,929



34,359




Amortization of loan fees and debt premium

328



444



1,309



1,339




Accretion on discounted liabilities

594



722



1,726



2,255




Change in contingent consideration

(14,765)



-



(14,235)



-




Impairment expense

7,000



-



7,000



-




Depreciation and amortization

14,305



9,079



36,821



26,654



EBITDA

62,168



53,469



182,985



143,005




Less: Noncontrolling interest EBITDA (g)

-



-



-



10,180




Less: Earnings attributable to the CPI earn-out

2,887



-



8,528



-



EBITDA attributable to PBFX

59,281



53,469



174,457



132,825




Non-cash unit-based compensation expense

995



1,271



3,242



5,622




Cash interest

(10,760)



(12,334)



(34,481)



(34,760)




Maintenance capital expenditures attributable to PBFX

(1,030)



(2,868)



(6,985)



(4,613)



Distributable cash flow

$

48,486



$

39,538



$

136,233



$

99,074










Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (c):









Net cash provided by operating activities

$

61,741



$

39,757



$

141,429



$

95,643



Change in operating assets and liabilities

(9,122)



2,753



10,869



18,625




Interest expense, net

10,544



12,230



33,929



34,359




Non-cash unit-based compensation expense

(995)



(1,271)



(3,242)



(5,622)



EBITDA

62,168



53,469



182,985



143,005




Less: Noncontrolling interest EBITDA (g)

-



-



-



10,180




Less: Earnings attributable to the CPI earn-out

2,887



-



8,528



-



EBITDA attributable to PBFX

59,281



53,469



174,457



132,825




Non-cash unit-based compensation expense

995



1,271



3,242



5,622




Cash interest

(10,760)



(12,334)



(34,481)



(34,760)




Maintenance capital expenditures attributable to PBFX

(1,030)



(2,868)



(6,985)



(4,613)



Distributable cash flow

$

48,486



$

39,538



$

136,233



$

99,074










See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP

TO EBITDA AND ADJUSTED EBITDA

(Unaudited, in thousands)









Three Months Ended

September 30,


Nine Months Ended

September 30,

2020


2019


2020


2019

Reconciliation of net income to EBITDA and Adjusted EBITDA (c):









Net income

$

44,162



$

30,994



$

116,435



$

78,398




Interest expense, net

10,544



12,230



33,929



34,359




Amortization of loan fees and debt premium

328



444



1,309



1,339




Accretion on discounted liabilities

594



722



1,726



2,255




Change in contingent consideration

(14,765)



-



(14,235)



-




Impairment expense

7,000



-



7,000



-




Depreciation and amortization

14,305



9,079



36,821



26,654



EBITDA

62,168



53,469



182,985



143,005




Less: Noncontrolling interest EBITDA (g)

-



-



-



10,180




Less: Earnings attributable to the CPI earn-out

2,887



-



8,528



-



EBITDA attributable to PBFX

59,281



53,469



174,457



132,825




Acquisition and transaction costs

6



281



116



3,389




Non-cash unit-based compensation expense

995



1,271



3,242



5,622




East Coast Terminals environmental remediation costs

237



430



644



4,026




PNGPC tariff true-up adjustment

-



-



-



882



Adjusted EBITDA

$

60,519



$

55,451



$

178,459



$

146,744










See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION

(Unaudited, in thousands)












Three Months Ended September 30, 2020



Transportation
and Terminaling


Storage


Corporate


Consolidated
Total

Total revenue (a)


$

66,992



$

22,018



$

-



$

89,010


Depreciation and amortization


7,010



7,295



-



14,305


Income (loss) from operations


43,377



16,363



(4,112)



55,628


Other expense


-



-



11,466



11,466


Capital expenditures


1,438



325



-



1,763













Three Months Ended September 30, 2019



Transportation
and Terminaling


Storage


Corporate


Consolidated
Total

Total revenue (a)


$

73,269



$

13,108



$

-



$

86,377


Depreciation and amortization


7,051



2,028



-



9,079


Income (loss) from operations


43,596



5,346



(4,552)



44,390


Other expense


-



-



13,396



13,396


Capital expenditures


2,781



5,247



-



8,028













Nine Months Ended September 30, 2020



Transportation
and Terminaling


Storage


Corporate


Consolidated
Total

Total revenue (a)


$

203,944



$

67,224



$

-



$

271,168


Depreciation and amortization


21,105



15,716



-



36,821


Income (loss) from operations


127,557



38,640



(12,798)



153,399


Other expense


-



-



36,964



36,964


Capital expenditures


6,469



3,166



-



9,635













Nine Months Ended September 30, 2019



Transportation
and Terminaling


Storage


Corporate


Consolidated
Total

Total revenue (a)


$

208,884



$

39,088



$

-



$

247,972


Depreciation and amortization


20,831



5,823



-



26,654


Income (loss) from operations


120,676



13,817



(18,142)



116,351


Other expense


-



-



37,953



37,953


Capital expenditures


15,014



8,166



-



23,180











See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION (continued)

(Unaudited, in thousands)












Balance at September 30, 2020



Transportation
and Terminaling


Storage


Corporate


Consolidated
Total

Total assets


$

705,416



$

213,118



$

23,233



$

941,767













Balance at December 31, 2019



Transportation
and Terminaling


Storage


Corporate


Consolidated
Total

Total assets


$

726,374



$

228,495



$

18,133



$

973,002


PBF LOGISTICS LP

EARNINGS RELEASE TABLES

FOOTNOTES TO EARNINGS RELEASE TABLES

(Unaudited, in thousands, except per unit data)













(a)


See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below:






Revenue - On October 1, 2018, we closed the East Coast Storage Assets Acquisition, which was accounted for as a business combination. In October 2019, we recommenced operations of certain of the acquired idled assets, which began revenue generating activities. As such, there was no revenue associated with the acquired idled assets prior to their recommencement.






On May 31, 2019, we closed the TVPC Acquisition in which we acquired the remaining 50% equity interest in TVPC. As such, we now own 100% of the equity interest in TVPC and no longer record a noncontrolling interest related to our ownership of TVPC.






Operating and maintenance expenses - As a result of our acquisitions and the completion of certain organic growth projects, our operating expenses are not comparative to prior periods as it pertains to expenses associated with those assets.






In addition, our results in the current year have been negatively affected by the impact of the COVID-19 pandemic on our business, including lower throughput at our terminals, as the industry reacts to the related economic downturn and volatile commodity markets.













(b)


Calculated as the sum of the average throughput per day for each asset group for the periods presented.













(c)


See 'Non-GAAP Financial Measures' on page 5 for definitions of EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA, distributable cash flow and coverage ratio.













(d)


Operating information reflects activity subsequent to our acquisitions, the execution of the commercial agreements with PBF Holding and the completion of certain organic growth projects.




(e)


On October 29, 2020, we announced a quarterly cash distribution of $0.30 per limited partner unit based on the results of the third quarter of 2020. The distribution is payable on November 30, 2020 to PBFX unitholders of record at the close of business on November 16, 2020. The total distribution amount includes the expected distributions to be made related to third quarter earnings.




(f)


Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is also useful to investors since we have the ability to, and may decide to, use a portion of our cash and cash equivalents to retire or pay down our debt. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of September 30, 2020 and December 31, 2019 was $705,563 and $767,138, respectively.













(g)


Prior to the TVPC Acquisition, our wholly-owned subsidiary, PBFX Operating Company LLC ('PBFX Op Co'), held a 50% controlling equity interest in TVPC, with the other 50% equity interest in TVPC owned by TVP Holding, a subsidiary of PBF Holding. PBFX Op Co was the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidated the financial results of TVPC and recorded a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations included the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets included the portion of net assets of TVPC attributable to TVP Holding.






Subsequent to the TVPC Acquisition, we own 100% of the equity interest in TVPC and no longer record a noncontrolling interest related to TVPC.




(h)


We base our calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period and the amount of available cash that has been, or will be, distributed to the limited partners.

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SOURCE PBF Logistics LP