KANEB Reports 2002 Results.Energy Editors/Business Editors DALLAS--(BUSINESS WIRE)--Feb. 26, 2003 KANEB today reported results for the year ended December December: see month. 31, 2002. The Kaneb Companies are Kaneb Services LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (NYSE NYSE See: New York Stock Exchange :KSL KSL - Knowledge Systems Laboratory ) and Kaneb Pipe Line Partners, L.P. (NYSE:KPP KPP Key Performance Parameter KPP K-Profile Parameterization KPP Kepler Packing Problem (mathematics) KPP Kinoform Phase Plate KPP Kodak Premium Processing KPP Knowledge Processing Subsystem ), ("the Partnership"). Kaneb Services LLC's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Kaneb Pipe Line Company LLC, is the Partnership's General Partner. "2002 was a very active and productive year for KANEB. We acquired two large terminaling operations and two very significant pipeline systems that will add substantially to our business and our cash flow for many years to come," said John R. Barnes Barnes, former municipal borough, SE England. See Richmond upon Thames. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Kaneb Services LLC. "KANEB's business is represented in two publicly-traded vehicles - KSL and KPP - each of which offers value to investors. Our business is focused on steady growth, which allows the cash distributed to our investors to grow." 2002 RESULTS FOR KANEB SERVICES LLC Kaneb Services LLC reported net income of $47.2 million for the year, compared with $28.3 million for the prior year. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , as reported for 2002, were $4.02, compared with $2.46 in the prior year. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: income before gain on settlement of treasury lock and loss on debt extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. , net of interest of outside non-controlling partners in KPP's net income, and gain on issuance of units by KPP (see Supplemental Information in the attached table) was $22.4 million, a 23% increase over the comparable amount for 2001 of $18.3 million. Diluted earnings per share, before gain on settlement of treasury lock and loss on debt extinguishment, net of interest of outside non-controlling partners in KPP's net income, and gain on issuance of units by KPP (see Supplemental Information in the attached table) were $1.91, compared to $1.59 last year. KSL was formed as a limited liability company in 2001 with assets previously held by Kaneb Services, Inc. (now Xanser Corporation). Those assets include the KPP general partner interest and incentive as well as 5.1 million Partnership units, a wholesale petroleum product marketing company, and a wholly owned subsidiary that manages and operates the pipeline and terminaling assets of KPP. 2002 RESULTS FOR KANEB PIPE LINE PARTNERS, L.P. Kaneb Pipe Line Partners, L.P. reported revenues of $386.6 million, compared to $207.8 million for the prior year. Net income for 2002 was $73.1 million compared with $64.1 million last year. Net income per unit was $2.96, compared with $3.03 last year. Income before gain on settlement of treasury lock and loss on debt extinguishment, net of minority interest, (see Supplemental Information in the attached table) was $73.3 million, an 11% increase over the comparable amount for 2001 of $66.1 million. Pipeline revenues were $82.7 million, compared with $75.0 million last year. Pipeline operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased to $38.6 million, up from $36.8 million for 2001. The positive, accretive effect of the recent acquisitions and substantial growth in base terminaling operations are reflected in the increased terminaling revenues and operating income. Terminaling revenues increased to $206.0 million, compared with $132.8 million in the prior year and terminaling operating income increased to $65.0 million, compared with $45.3 million for 2001. "We are very pleased with the Partnership's progress in 2002. The acquisitions made late in the year did not have enough time to significantly impact the financial results for the year but we are eager to build on those results in 2003," said Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide D. Doherty
ABOUT KANEB KANEB is a single business represented by two separate publicly traded entities on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . KANEB's business is focused on mid-stream energy assets -- refined petroleum product pipelines, and petroleum and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. liquids storage and terminaling facilities. KANEB is a major transporter of refined petroleum products in the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians and is the third largest independent liquids terminaling company in the world. Worldwide operations include facilities in 29 states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the Netherlands Antilles Netherlands Antilles, island group, an autonomous part of the Netherlands (2005 est. pop. 220,000), 371 sq mi (961 sq km), West Indies. Formerly known as the Dutch West Indies and Netherlands West Indies, they are divided into two groups. , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. and the United Kingdom. Its publicly traded entities are Kaneb Services LLC (NYSE:KSL) and Kaneb Pipe Line Partners, L.P., (NYSE:KPP), ("the Partnership"). Kaneb Services LLC is a unique limited liability company, the only publicly traded, cash distributing entity taxed as a partnership that owns the general partner interest of another publicly traded master limited partnership. KSL's assets are the KPP general partner interest and 5.1 million KPP partnership units. Through a wholly owned subsidiary, Kaneb Pipe Line Company LLC, KSL manages and operates the KPP pipeline and terminaling assets. Another KSL subsidiary provides wholesale fuel marketing services. Kaneb Pipe Line Partners, L.P., a master limited partnership, was formed in 1989 to own a 2,075 mile common carrier pipeline system from Kansas Kansas, state, United States Kansas (kăn`zəs), midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N). to North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). that has been managed by Kaneb Pipe Line Company LLC since 1953. Pipeline acquisitions in 1995 and 1998 added 725 miles of pipeline in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , Iowa, South Dakota South Dakota (dəkō`tə), state in the N central United States. It is bordered by North Dakota (N), Minnesota and Iowa (E), Nebraska (S), and Wyoming and Montana (W). and Wyoming Wyoming, city, United States Wyoming, city (1990 pop. 63,891), Kent co., W Mich., in the greater Grand Rapids metropolitan area, on the Grand River; settled 1832, inc. 1959. . In 2002, the Partnership acquired the largest fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. pipeline in the country, a 2,000-mile pipeline system that runs from the Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. Gulf Coast to
the upper Midwest The Upper Midwest is a region of the United States with no universally agreed-upon boundary, but it almost always lies within the US Census Bureau's definition of the Midwest and includes the states of Minnesota and Wisconsin, as well as at least the Upper Peninsula of Michigan. states. In December 2002, the Partnership acquired a
400 mile products pipeline and four terminals in North Dakota and
Minnesota Minnesota, state, United StatesMinnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces . The Partnership entered the liquids terminaling business with a large acquisition in 1993, and has more than tripled the size of this operation through subsequent acquisitions. In 2001, the Partnership completed a $165 million acquisition of seven West Coast, U.S. terminals. In 2002, the Partnership completed a $300 million acquisition of two world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. terminaling facilities located in Point Tupper, Nova Scotia Point Tupper is a small rural community located in western Cape Breton Island, Nova Scotia on the Strait of Canso. , Canada and on the island of St. Eustatius Noun 1. St. Eustatius - an island in the Netherlands Antilles Saint Eustatius Netherlands Antilles - a group of islands in the Lesser Antilles just to the north of Venezuela that are administered by The Netherlands in the Netherlands Antilles and the acquisition of eight bulk liquid storage terminals in Australia and New Zealand. Certain of the statements in this press release are not purely historical, and as such are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These include statements regarding management's intentions, plans, beliefs, expectations or projections of the future. Forward-looking statements involve risks and uncertainties, including without limitation, the various risks inherent in the company's business, and other risks and uncertainties detailed from time to time in the companies' periodic reports filed with the Securities and Exchange Commission. One or more of these factors have affected, and could in the future affect, the company's business and financial results in future periods, and could cause actual results to differ materially from plans and projections. There can be no assurance that the forward-looking statements made in this document will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by the company, or any other person, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to management, and the company assumes no obligation to update any forward-looking statements.
KANEB PIPE LINE PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per unit
amounts)
(Unaudited)
Three Months Year Ended
Ended December 31, December 31,
------------------ -------------------
2002 2001 2002 2001
--------- -------- --------- ---------
Revenues:
Services $80,723 $53,372 $288,669 $207,796
Products 34,259 - 97,961 -
--------- -------- --------- ---------
Total revenues 114,982 53,372 386,630 207,796
--------- -------- --------- ---------
Costs and expenses:
Cost of products sold 31,465 - 90,898 -
Operating costs 39,375 23,299 131,326 90,632
Depreciation and amortization 12,017 5,858 39,425 23,184
Gain on sale of assets (503) - (609) -
General and administrative 5,758 4,406 19,869 11,889
--------- -------- --------- ---------
Total costs and expenses 88,112 33,563 280,909 125,705
--------- -------- --------- ---------
Operating income 26,870 19,809 105,721 82,091
Interest and other income 3,156 59 3,570 4,277
Interest expense (7,978) (2,639) (28,110) (14,783)
Loss on debt extinguishment (1,170) - (3,282) (6,540)
--------- -------- --------- ---------
Income before minority interest
and income taxes 20,878 17,229 77,899 65,045
Minority interest in net income (198) (169) (738) (648)
Income tax provision (1,102) (379) (4,083) (256)
--------- -------- --------- ---------
Net income 19,578 16,681 73,078 64,141
General partner's interest in
net income (1,526) (906) (5,638) (2,774)
--------- -------- --------- ---------
Limited partners' interest in
net income $18,052 $15,775 $67,440 $61,367
========= ======== ========= =========
Allocation of net income per
unit $0.74 $0.78 $2.96 $3.03
========= ======== ========= =========
Weighted average number of
Partnership units
outstanding 24,296 20,285 22,763 20,285
========= ======== ========= =========
KANEB PIPE LINE
PARTNERS, L.P.
SUPPLEMENTAL INFORMATION
(Unaudited)
Three Months
Ended December 31, Year Ended December 31,
------------------- -----------------------
2002 2001 2002 2001
--------- -------- ------------- ---------
Net income (in 000s) $19,578 $16,681 $73,078 $64,141
Gain on settlement of
treasury lock, net of
minority interest (in
000s) (2,989) - (2,989) (3,782)
Loss on debt
extinguishment, net of
minority interest (in
000s) 1,158 - 3,248 5,757
--------- -------- ------------- ---------
Income before settlement
of treasury lock and
loss on debt
extinguishment (in
000s) $17,747 $16,681 $73,337 $66,116
========= ======== ============= =========
Income per unit before
settlement of treasury
lock and loss on debt
extinguishment $0.67 $0.78 $2.97 $3.12
========= ======== ============= =========
Revenues (in 000s):
Pipeline $24,752 $19,821 $82,698 $74,976
Terminaling 55,971 33,551 205,971 132,820
Product marketing 34,259 - 97,961 -
--------- -------- ------------- ---------
$114,982 $53,372 $386,630 $207,796
========= ======== ============= =========
Operating income (in
000s):
Pipeline $11,202 $10,133 $38,623 $36,773
Terminaling 14,078 9,676 65,040 45,318
Product marketing 1,590 - 2,058 -
--------- -------- ------------- ---------
$26,870 $19,809 $105,721 $82,091
========= ======== ============= =========
Depreciation and
amortization (in 000s):
Pipeline $2,276 $1,541 $6,408 $5,478
Terminaling 9,555 4,317 32,368 17,706
Product marketing 186 - 649 -
--------- -------- ------------- ---------
$12,017 $5,858 $39,425 $23,184
========= ======== ============= =========
Capital expenditures (in
000s):
Pipeline $2,321 $2,184 $9,469 $4,309
Terminaling 6,292 5,473 20,953 12,937
Product marketing 559 - 679 -
--------- -------- ------------- ---------
$9,172 $7,657 $31,101 $17,246
========= ======== ============= =========
Pipeline operating
statistics - Barrel
miles shipped (in
billions)(a) 4.6 4.7 18.3 18.6
========= ======== ============= =========
Terminaling operating
statistics:
Average annual
barrels of tankage
utilized (in
millions) 49.7 30.1 46.5 30.1
========= ======== ============= =========
Average annual
revenues per barrel
of tankage
utilized $4.47 $4.38 $4.43 $4.41
========= ======== ============= =========
(a)Excludes barrel miles
on pipelines
acquired in 2002.
KANEB SERVICES LLC
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per
share amounts)
(Unaudited)
Three Months
Ended December 31, Year Ended December 31,
-------------------- ------------------------
2002 2001 2002 2001
---------- --------- ------------ -----------
Consolidated revenues:
Services $80,723 $53,372 $288,669 $207,796
Products 103,331 63,051 381,159 327,542
---------- --------- ------------ -----------
Total consolidated
revenues 184,054 116,423 669,828 535,338
---------- --------- ------------ -----------
Consolidated costs and
expenses:
Cost of products sold 99,143 63,934 367,870 326,230
Operating costs 39,608 23,565 132,269 91,704
Depreciation and
amortization 12,031 5,879 39,471 23,261
Gain on sale of assets (503) - (609) -
General and
administrative 7,434 5,423 24,468 14,352
---------- --------- ------------ -----------
Total consolidated
costs and expenses 157,713 98,801 563,469 455,547
---------- --------- ------------ -----------
Consolidated operating
income 26,341 17,622 106,359 79,791
Consolidated interest and
other income 3,182 (98) 3,664 4,132
Consolidated interest
expense (8,227) (2,655) (29,171) (15,381)
Consolidated loss on debt
extinguishment (1,170) - (3,282) (6,540)
---------- --------- ------------ -----------
Consolidated income before
gain on issuance of units
by KPP, income taxes and
interest of outside non-
controlling partners in
KPP's net income 20,126 14,869 77,570 62,002
Gain on issuance of units
by KPP 7,550 - 24,882 9,859
Income tax benefit
(expense) (472) 198 (2,585) 2,413
-
Interest of outside non-
controlling partners
in KPP's net income (14,397) (11,813) (52,639) (45,951)
---------- --------- ------------ -----------
Net income $12,807 $3,254 $47,228 $28,323
========== ========= ============ ===========
Earnings per share:
Basic: $1.12 $0.29 $4.13 $2.57
========== ========= ============ ===========
Diluted: $1.09 $0.28 $4.02 $2.46
========== ========= ============ ===========
KANEB SERVICES LLC
SUPPLEMENTAL INFORMATION
(In thousands, except per
share amounts)
(Unaudited)
Three Months
Ended December 31, Year Ended December 31,
-------------------- ------------------------
2002 2001 2002 2001
---------- --------- ------------ -----------
Net income $12,807 $3,254 $47,228 $28,323
Gain on settlement of
treasury lock, net of
interest of outside
non-controlling
partners in KPP's net
income (661) - (661) (1,016)
Loss on debt
extinguishment, net of
interest of
outside non-controlling
partners in KPP's net
income 256 - 758 859
Gain on issuance of units
by KPP (7,550) - (24,882) (9,859)
---------- --------- ------------ -----------
Income, as adjusted $4,852 $3,254 $22,443 $18,307
========== ========= ============ ===========
Diluted earnings per
share, as adjusted $0.41 $0.28 $1.91 $1.59
========== ========= ============ ===========
Weighted average diluted
shares outstanding 11,746 11,674 11,755 11,509
========== ========= ============ ===========
Consolidated revenues
(including KPP):
Pipeline $24,752 $19,821 $82,698 $74,976
Terminaling 55,971 33,551 205,971 132,820
Product Marketing 103,331 63,051 381,159 327,542
---------- --------- ------------ -----------
$184,054 $116,423 $669,828 $535,338
========== ========= ============ ===========
Consolidated operating
income (including KPP):
Pipeline $11,202 $10,133 $38,623 $36,773
Terminaling 14,078 9,676 65,040 45,318
Product Marketing 1,755 (1,360) 4,692 (611)
General and
administrative
expenses (694) (827) (1,996) (1,689)
---------- --------- ------------ -----------
$26,341 $17,622 $106,359 $79,791
========== ========= ============ ===========
Supplemental cash flow
information:
Distributions received
from KPP $5,616 $21,612
Parent Company general
and administrative
expenses (694) (1,996)
Parent Company interest
expense (185) (718)
---------- ------------
$4,737 $18,898
========== ============
Cash distributed to
shareholders $4,749 $18,351
========== ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion