KIANTONE PIPELINE CO

CIK:0001045539|SEC Filings

Consolidated Statements of Operations - (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Income Statement [Abstract]
Net sales	$ 572,609	$ 497,982	$ 1,616,989	$ 1,511,297
Costs and expenses:
Costs of goods sold (exclusive of depreciation and amortization)	510,111	395,531	1,451,887	1,320,134
Selling, general and administrative expenses	43,440	43,591	130,471	127,690
Depreciation and amortization expenses	11,461	12,175	35,482	36,679
Total costs and expenses	565,012	451,297	1,617,840	1,484,503
Operating income (loss)	7,597	46,685	(851)	26,794
Other expense:
Interest expense, net	(3,438)	(2,718)	(9,261)	(10,705)
Other, net	(394)	81	(1,072)	(2,285)
Loss on extinguishment of debt				(19,316)
Total other income(expense)	(3,832)	(2,637)	(10,333)	(32,306)
Income (loss) before income tax expense (benefit)	3,765	44,048	(11,184)	(5,512)
Income tax expense (benefit)	1,286	16,307	(4,137)	(2,045)
Net income (loss)	$ 2,479	$ 27,741	$ (7,047)	$ (3,467)

Consolidated Statements of Cash Flows - (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	May 31, 2017	May 31, 2016
Cash flows from operating activities:
Net loss	$ (7,047)	$ (3,467)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	35,482	36,679
Amortization of debt discount and deferred financing costs	1,001	1,101
Deferred income taxes	452	3,385
Noncash portion of loss on extinguishment of debt		5,771
Loss on asset dispositions	2,976	840
Cash (used in) provided by working capital items	(62,131)	56,947
Change in operating assets and liabilities:
Other assets, net	264	406
Deferred retirement benefits	(4,844)	(6,790)
Total adjustments	(26,800)	98,339
Net cash (used in) provided by operating activities	(33,847)	94,872
Cash flows from investing activities:
Short-term investments	(98)
Additions to property, plant and equipment	(26,742)	(64,389)
Additions to amortizable assets		(60)
Additions to deferred turnaround costs	(2,274)	(1,362)
Additions to deferred integrity and replacement costs	(2,902)	(66,572)
Proceeds from asset dispositions	373	246
Net cash used in investing activities	(31,643)	(132,137)
Cash flows from financing activities:
Net borrowings on revolving credit facility	30,000
Proceeds from issuance of long-term debt	60,000	301,948
Principal reductions of long-term debt	(22,143)	(251,593)
Dividends to preferred shareholder and stockholder	(6,352)	(45,416)
Deferred financing costs	(605)	(5,793)
Net cash provided by (used in) financing activities	60,900	(854)
Net decrease in cash and cash equivalents	(4,590)	(38,119)
Cash and cash equivalents, beginning of year	48,361	117,028
Cash and cash equivalents, end of period	43,771	78,909
Cash (used in) provided by working capital items:
Accounts receivable, net	(7,589)	14,243
Refundable income taxes	1,759	(4,200)
Inventories, net	(35,060)	41,954
Prepaid income taxes	(9,405)	(5,147)
Prepaid expenses and other assets	5,203	8,632
Amounts due from/to affiliated companies	(3,862)	(2,922)
Accounts payable	(14,118)	14,443
Accrued liabilities	(1,683)	(1,696)
Income taxes payable		(7,397)
Sales, use, and fuel taxes payable	2,624	(963)
Total change	(62,131)	56,947
Cash paid during the period for:
Interest	8,243	9,160
Income taxes	$ 3,131	$ 11,314

Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2017	Aug. 31, 2016
Current:
Cash and cash equivalents	$ 43,771	$ 48,361
Short-term investments	10,254	10,156
Accounts receivable, net	79,093	71,504
Refundable income taxes	1,584	3,343
Inventories, net	202,122	167,062
Prepaid income taxes	13,423	4,018
Prepaid expenses and other assets	16,889	22,092
Amounts due from affiliated companies	3,255
Total current assets	370,391	326,536
Property, plant and equipment, net	408,741	403,631
Goodwill	1,349	1,349
Trade name	10,500	10,500
Amortizable intangible assets, net	712	807
Deferred integrity and replacement costs, net	105,473	112,892
Deferred turnaround costs and other assets, net	14,079	18,852
Total assets	911,245	874,567
Current:
Current installments of long-term debt	29,828	28,029
Accounts payable	47,714	61,832
Accrued liabilities	19,624	21,307
Sales, use and fuel taxes payable	24,273	21,649
Amounts due to affiliated companies	122	729
Total current liabilities	121,561	133,546
Revolving credit facility	30,000
Long-term debt, less current installments	290,952	254,498
Deferred income taxes	48,333	48,173
Deferred retirement benefits	90,732	94,786
Total liabilities	581,578	531,003
Commitments and contingencies
Stockholder's equity:
Common stock; $.10 par value per share - shares authorized 100; issued and outstanding 100	0	0
Series A Preferred stock; $1,000 par value per share - shares authorized 25,000; issued and outstanding 14,116	14,116	14,116
Additional paid-in capital	157,316	157,316
Retained earnings	195,096	208,495
Accumulated other comprehensive loss	(36,861)	(36,363)
Total stockholder's equity	329,667	343,564
Total liabilities and stockholder's equity	$ 911,245	$ 874,567