Zenith Energy Logistics Partners LP

CIK:0001583744|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Third-party customers	$ 25,859	$ 22,933	$ 75,420	$ 68,136
Related parties	1,431	3,739	4,382	10,847
Revenues	27,290	26,672	79,802	78,983
Expenses:
Operating expenses	8,848	8,192	26,595	25,107
Selling, general and administrative	4,999	3,141	10,950	10,168
Selling, general and administrative – affiliate	1,368	1,342	3,941	3,965
Depreciation	4,623	3,972	13,565	11,345
Amortization	3,547	3,672	10,808	11,042
(Gain) Loss on revaluation of contingent consideration, net	534	545	1,465	(303)
Total expenses	23,919	20,864	67,324	61,324
Operating income (loss)	3,371	5,808	12,478	17,659
Other income (expense):
Equity earnings from unconsolidated affiliate	2,431	2,512	7,243	7,439
Gain (Loss) on disposal of property and equipment	(1,484)		(1,484)	0
Other income	60	1	60	2
Interest expense	(3,132)	(2,481)	(8,656)	(7,234)
Total other income (expense)	(2,125)	32	(2,837)	207
Income before income taxes	1,246	5,840	9,641	17,866
Income taxes	55	49	86	101
Net income	1,191	5,791	9,555	17,765
Net income attributable to non-controlling interests	(1,047)	(1,659)	(3,720)	(5,553)
Net income attributable to partners' capital	144	4,132	5,835	12,212
Other comprehensive (loss) income	475	831	1,156	(84)
Comprehensive income (loss) attributable to partners’ capital	$ 619	$ 4,963	$ 6,991	$ 12,128
Common Units [Member]
Earnings (loss) per limited partner unit:
Earnings per limited partner unit, basic and diluted	$ 0.00	$ 0.20	$ 0.27	$ 0.59
Subordinated Units [Member]
Earnings (loss) per limited partner unit:
Earnings per limited partner unit, basic and diluted		$ 0.20		$ 0.59

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flow from operating activities:
Net income	$ 9,555	$ 17,765
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	13,565	11,345
Amortization	10,808	11,042
Equity earnings from unconsolidated affiliate, net of distributions	(1,153)	(120)
Amortization of deferred financing costs	1,258	1,145
Unit-based compensation	1,847	3,523
Net loss (gain) on revaluation of contingent consideration	1,465	(303)
Net loss (gain) on disposal of property and equipment	1,484	0
Changes in operating assets and liabilities:
Trade accounts receivable	(3,125)	583
Due from related parties	841	(34)
Inventories	29	80
Other current assets	(384)	(442)
Accounts payable	952	(573)
Accrued expenses	295	(227)
Due to general partner	680	1,347
Other liabilities	428	(1,829)
Net cash provided by (used in) operating activities	38,545	43,302
Cash flows from investing activities:
Capital expenditures	(12,966)	(20,902)
Investment in unconsolidated affiliate	(6)	0
Net cash paid for acquisitions	0	(8,000)
Net cash provided by (used in) investing activities	(12,972)	(28,902)
Cash flows from financing activities:
Distributions	(25,758)	(25,438)
Deferred financing costs	(213)	(584)
Repayments to credit facility	(15,000)	(3,313)
Proceeds from credit facility	22,000	23,250
Equity contribution from non-controlling interests	1,575	0
Payments of earn-out liability	(2,153)	(1,028)
Distributions paid to non-controlling interests	(7,200)	(8,000)
Net settlement withholding taxes related to stock based compensation	(202)	0
Distribution equivalent rights paid on unissued units	(529)	(763)
Net cash provided by (used in) financing activities	(27,480)	(15,876)
Net increase (decrease) in cash and cash equivalents	(1,907)	(1,476)
Cash and cash equivalents, beginning of period	4,584	5,870
Cash and cash equivalents, end of period	2,677	4,394
Supplemental disclosure of cash flow information:
Cash paid for interest	7,390	6,601
Cash paid for income taxes	86	100
Non-cash investing and financing activities:
Decrease (increase) in earn-out liability in accounts payable and accrued expenses	(288)	0
Increase (decrease) in purchases of property plant and equipment in accounts payable and accrued expenses	$ 2,890	$ (1,365)

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 2,677	$ 4,584
Trade accounts receivable	11,501	8,257
Due from related parties	480	1,321
Inventories	368	397
Other current assets	2,444	2,060
Total current assets	17,470	16,619
Property, plant and equipment, net	396,198	395,511
Investment in unconsolidated affiliate	77,800	75,716
Intangible assets, net	107,140	117,716
Goodwill	39,871	39,871
Other assets	1,935	2,980
Total assets	640,414	648,413
Current liabilities:
Accounts payable	6,298	2,455
Accrued expenses	5,689	5,684
Due to general partner	2,762	2,082
Other liabilities	3,523	2,961
Total current liabilities	18,272	13,182
Credit facility	256,000	249,000
Other non-current liabilities	19,272	19,805
Total liabilities	293,544	281,987
Commitments and contingencies
Limited partners’ interest
Common units – (19,545,944 and 19,477,021 units issued and outstanding at September 30, 2017 and December 31, 2016, respectively)	263,421	282,228
Non-controlling interests	79,636	81,541
Accumulated other comprehensive income	3,813	2,657
Total partners’ capital	346,870	366,426
Total liabilities and partners’ capital	$ 640,414	$ 648,413