AEGEAN MARINE PETROLEUM NETWORK INC. PIRAEUS, Greece, March 16, 2015 /PRNewswire/ -- Aegean Marine Petroleum Network Inc. (NYSE: ANW) ("Aegean" or the "Company") today announced financial and operating results for the fourth quarter ended December 31(st), 2014.
Fourth Quarter Highlights and Full Year Highlights
-- Recorded sales volumes of 3,008,060 metric tons in Q4 2014 and
11,332,385 for the full year.
-- Recorded gross profit of $85.2 million in Q4 2014 and $335.2 million for
the full year.
-- Recorded operating income of $18.5 million for the quarter and $57.9
million for the full year.
-- Recorded net income attributable to Aegean shareholders of $7.5 million
or $0.16 basic diluted earnings per share in Q4 2014 and $17.6 million
or $0.37 basic and diluted earnings per share for the full year.
-- Net income attributable to Aegean shareholders adjusted for bad debt
expense related to the OW bankruptcy and a sale of non-core assets
was $10.4 million or $0.22 basic and diluted earnings per share in
Q4 2014 and $37.8 or $0.79 basic diluted earnings per share for the
full year.
-- Recorded EBITDA of $22.9 million in Q4 2014 and $82.0 million for the
full year.
-- EBITDA adjusted for bad debt expense related to the OW bankruptcy
and a sale of non-core assets was $25.8 million in Q4 2014 and
$102.2 million for the full year. [1]
-- Operational Highlights:
-- Integrated U.S. East Coast operations.
-- Launched commercial leasing efforts for Fujairah storage facility.
-- Launched physical supply and marketing operations in Germany.
-- Commenced operations in the Gulf of Mexico
-- Commenced operations in Los Angeles
-- Increased liquidity through convertible note offering
"2014 was a landmark year for Aegean," commented E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network. "We took advantage of recent sector turbulence to expand into new markets, and announced new operations across four continents. We have already fully integrated our new operations in the Gulf of Mexico and the Port of Los Angeles, and are close to completing the integration of our new operations in Hamburg, Germany, and St. Petersburg, Russia. In addition, we launched our long-awaited Fujairah storage facility, fully integrated our U.S. East Coast operations, and continued to streamline our expenses to maximize utilization of our fleet. We are proud to have significantly grown our company and delivered solid results despite industry-wide headwinds."
(1) Please see below for a
reconciliation of EBITDA, a
non-GAAP measure, to net
income.
Mr. Tavlarios continued, "Throughout 2014 we successfully executed on our strategy to streamline and our infrastructure and leverage our full-year results, which include fourth quarter and full-year operating income growth of 42 and 47% respectively. Looking ahead, we expect to continue building on our strong momentum in 2015 to deliver continued bottom line growth. We look forward to evaluating additional expansion opportunities and leveraging our strengthened global position to drive continued growth and value creation."
For the three months ended December 31, 2014 the Company achieved net income attributable to Aegean shareholders of $7.5 million, or $0.16 basic diluted earnings per share. Net income attributable to Aegean shareholders excluding a write-down on bad debt expense related to the OW bankruptcy and a non-cash gain from the sale of non-core assets was $10.4 million or $0.22 basic and diluted earnings per share. For the three months ended December 31, 2013, the Company recorded net income attributable to Aegean shareholders of $7.0 million, or $0.15 basic and diluted earnings per share. Net income attributable to Aegean shareholders excluding a non-cash loss from the sale of a non-core vessel was $7.5 million or 0.16 basic and diluted earnings per share.
Following a reduction in commodity prices our total revenues for the three months ended December 31, 2014, decreased by 2.2% to $1,437.7 million compared with $1,470.4 million reported for the same period in 2013. For the three months ended December 31, 2014, sales of marine petroleum products decreased by 2.2% to $1,421.0 million compared with $1,453.0 million for the same period in 2013. Gross profit, which equals total revenue less directly attributable cost of revenue increased by 13.6% to $85.2 million in the fourth quarter of 2014 compared with $75.0 million in the same period in 2013.
For the three months ended December 31, 2014, the volume of marine fuel sold by the Company increased by 26.2% to 3,008,060 metric tons compared with 2,384,376 metric tons in the same period in 2013.
Operating income for the fourth quarter of 2014 amounted to $18.5 million compared to $14.5 million for the same period in 2013. Operating expenses increased by $6.2 million, or 10.2%, to $66.7 million for the three months ended December 31, 2014, compared with $60.5 million for the same period in 2013 largely due to a $3.3m bad debt expense related to the OW bankruptcy.
Liquidity and Capital Resources
Net cash provided by operating activities was $193.9 million for the three months ended December 31, 2014. Net income, as adjusted for non-cash items (as defined in Note 9) was $6.2 million for the period.
Net cash used in investing activities was $25.3 million for the three months ended December 31, 2014, primarily driven by the construction and completion of our storage facility in Fujairah.
Net cash used in financing activities was $140.2 million for the three months ended December 31, 2014, which was used to repay short term borrowings.
As of December 31, 2014, the Company had cash and cash equivalents of $143.1 million and working capital of $205.3 million. Non-cash working capital, or working capital excluding cash and debt, was $431.1 million.
As of December 31, 2014, the Company had $912.4 million in available liquidity, which includes unrestricted cash and cash equivalents of $143.1 million and available undrawn amounts under the Company's working capital facilities of $769.3 million, to finance working capital requirements.
The weighted average basic and diluted shares outstanding for the three months ended December 31, 2014 were 46,336,307. The weighted average basic and diluted shares outstanding for the three months ended December 31, 2013 were 45,685,472.
Spyros Gianniotis, Aegean's Chief Financial Officer, stated, "Aegean continues to successfully execute on a strategy of expanding/ enhancing its global offering while streamlining its operating platform and has achieved strong growth despite market volatility. Notably, we upsized and priced our previously announced 4.00% Convertible Senior Notes due 2018, which will provide us with additional liquidity to continue pursuing growth opportunities."
Ms. Gianniotis concluded, "Going forward we will continue to vigilantly monitor our capital allocation to capitalize on our expanded global scale and world-class integrated logistics platform and enhance shareholder value. I'd like to welcome all of our new employees around the world, and thank our dedicated team for their strong execution that is allowing us to enhance value for our shareholders."
Summary Consolidated Financial and For the Three Months Ended For the Year Ended
Other Data (Unaudited) December 31,
December 31,
2013 2014 2013 2014
---- ---- ---- ----
(in thousands of U.S. dollars, unless otherwise stated)
Income Statement Data:
Revenues - third parties $1,462,023 $1,431,457 $6,303,105 $6,635,316
Revenues - related companies 8,407 6,281 31,624 26,699
----- ----- ------ ------
Total revenues 1,470,430 1,437,738 6,334,729 6,662,015
Cost of revenues - third parties 1,299,902 1,301,227 5,621,408 5,975,541
Cost of revenues- related companies 95,562 51,343 427,329 351,311
------ ------ ------- -------
Total cost of revenues 1,395,464 1,352,570 6,048,737 6,326,852
--------- --------- --------- ---------
Gross profit 74,966 85,168 285,992 335,163
------ ------ ------- -------
Operating expenses:
Selling and distribution 50,951 55,690 201,597 218,899
General and administrative 8,553 11,059 29,727 38,099
Amortization of intangible assets 473 376 1,603 3,323
Loss/(Gain) on sale of vessels, net 495 (413) 4,312 12,864
Vessel impairment charge - - - 4,062
Operating income 14,494 18,456 48,753 57,916
Net financing cost 8,265 8,679 27,998 33,781
Gain on sale of subsidiary, net - - (4,174) -
Foreign exchange (gains) / losses, net (370) 2,787 (1,123) 6,032
Other expense - - - -
Income taxes expense / (income) (423) (509) (978) 464
---- ---- ---- ---
Net income 7,022 7,499 27,030 17,639
----- ----- ------ ------
Less income/(loss) attributable to non-controlling interest 10 (17) (33) 49
--- --- --- ---
Net income attributable to AMPNI shareholders $7,012 $7,516 $27,063 $17,590
====== ====== ======= =======
Basic earnings per share (U.S. dollars) $0.15 $0.16 $$0.58 $$0.37
Diluted earnings per share (U.S. dollars) $0.15 $0.16 $$0.58 $$0.37
EBITDA(1) $22,392 $22,894 $83,231 $82,019
Other Financial Data:
Gross spread on marine petroleum products(2) $65,029 $78,238 $256,724 $303,150
Gross spread on lubricants(2) 932 828 3,914 2,948
Gross spread on marine fuel(2) 64,097 77,410 252,810 300,202
Gross spread per metric ton of marine 26.9 25.7 25.4 26.5
fuel sold (U.S. dollars) (2)
Net cash provided by operating activities $38,705 $193,857 $40,583 $181,546
Net cash used in investing activities (151,290) (25,292) (181,821) (58,834)
Net cash provided by/ (used in) financing activities 102,394 (140,183) 125,978 (36,753)
Sales Volume Data (Metric Tons): (3)
Total sales volumes 2,384,376 3,008,060 9,941,061 11,332,385
--------- --------- --------- ----------
Other Operating Data:
Number of owned bunkering tankers, end of period(4) 51.0 48.0 51.0 48.0
Average number of owned bunkering tankers(4)(5) 52.3 48.4 53.8 50.2
Special Purpose Vessels, end of period(6) 1.0 1.0 1.0 1.0
Number of operating storage facilities, end of period(7) 14.0 14.0 14.0 14.0
Summary Consolidated Financial and Other Data (Unaudited)
As of As of
December 31, December 31,
2013 2014
---- ----
(in thousands of U.S.
dollars,
unless otherwise stated)
Balance Sheet Data:
Cash and cash equivalents 62,575 143,078
Gross trade receivables 472,543 354,459
Allowance for doubtful accounts (2,622) (5,851)
Inventories 303,297 156,990
Current assets 896,730 750,415
Total assets 1,616,185 1,498,252
Trade payables 241,743 120,451
Current liabilities (including current portion of long-term debt) 652,277 545,067
Total debt 783,317 754,407
Total liabilities 1,072,439 930,836
Total stockholder's equity 543,746 567,416
Working Capital Data:
Working capital(8) 244,453 205,348
Working capital excluding cash and debt(8) 541,919 431,081
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 December 31,
---------------------------------------
2013 2014
---- ----
(in thousands of U.S. dollars,
unless otherwise stated)
-----------------------
Net income attributable
to AMPNI shareholders 7,012 7,516
Add: Net financing cost
including amortization
of financing costs 8,265 8,679
Add/ (Less): Income tax
expense/ (income) (423) (509)
Add: Depreciation and
amortization excluding
amortization of
financing costs 7,538 7,208
EBITDA 22,392 22,894
------ ------
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,
------------
2013 2014
---- ----
Sales of marine petroleum
products $1,452,993 $1,421,025
Less: Cost of marine
petroleum products sold (1,387,964) (1,342,787)
Gross spread on marine
petroleum products 65,029 78,238
Less: Gross spread on
lubricants (932) (828)
---- ----
Gross spread on marine fuel 64,097 77,410
Sales volume of marine fuel
(metric tons) 2,384,376 3,008,060
--------- ---------
Gross spread per metric ton
of marine $26.9 $25.7
fuel sold (U.S. dollars)
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
and West Coast, Gulf of Mexico,
Russia, Germany 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 owns one 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., Barcelona
and Fujairah.
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, 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.
Fourth Quarter 2014 Dividend Announcement
On March 16, 2015, the Company's Board of Directors declared a fourth quarter 2014 dividend of $0.02 per share payable on April 13, 2015 to shareholders of record as of March 30, 2015. 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, March 17, 2015 at 8:30 a.m. Eastern Time, to discuss its fourth 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) 378-0320 (for U.S.-based callers) or (719) 457-1035 (for international callers) and enter the passcode: 9791775.
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 March 31, 2015 by dialing (888) 203-1112 or (for U.S.-based callers) or (719) 457-0820 (for international callers) and enter the passcode: 9791775.
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 30 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, the U.S. East Coast, Los Angeles Algeciras, Germany and Russia. 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.
