Rio Vista Energy Partners L.P. Announces Results for the Quarter Ended September 30, 2006.Partnership Reports Net Loss from Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of ($0.41) Per Common Unit and Net Income from Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $2.82 Per Common Unit HOUSTON -- Rio Vista Rio Vista may refer to:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :RVEP), historically a provider of liquefied petroleum gas liquefied petroleum gas or LPG, mixture of gases, chiefly propane and butane, produced commercially from petroleum and stored under pressure to keep it in a liquid state. ("LPG LPG: see liquefied petroleum gas. 1. LPG - Linguaggio Procedure Grafiche (Italian for "Graphical Procedures Language"). dott. Gabriele Selmi. Roughly a cross between Fortran and APL, with graphical-oriented extensions and several peculiarities. ") for distribution to northeastern Mexico until the sale of certain of its LPG assets during August 2006, announced its financial results for the quarter ended September 30, 2006. Rio Vista reported a net loss from continuing operations of ($797,000) and a net loss from continuing operations allocable al·lo·ca·ble adj. Capable of being allocated. Adj. 1. allocable - capable of being distributed allocatable, apportionable distributive - serving to distribute or allot or disperse to its common units of ($789,000) or ($0.41) per common unit. During the quarter ended September 30, 2005, Rio Vista reported a net loss from continuing operations of ($1.7) million and a net loss from continuing operations allocable to its common units of ($1.7) million or ($0.89) per common unit. During the quarter ended September 30, 2006, Rio Vista also reported a gain from discontinued operations, in connection with Rio Vista's sale of certain of its LPG assets to TransMontaigne Product Services Inc. ("TransMontaigne") during August 2006, of $5.5 million, or $2.82 per common unit. For tax purposes, gain will be allocated to holders of common units in accordance with Rio Vista's amended and restated limited partnership agreement and applicable law. Unitholders should consult their individual tax advisors A tax advisor is a financial expert especially trained in tax law. Some countries require tax advisors to verify the balance sheets of companies above a certain size. Individuals usually require tax advisors to minimize taxation, to avoid learning the details of tax law in regarding the tax consequences associated with ownership of Rio Vista's common units. The following discussion of Rio Vista's results of operations from continuing operations excludes the results of operations related to sale of certain LPG assets referred to above, including revenues, direct costs and associated interest expenses, which have been reclassified as discontinued operations. As a result, the results of operations from continuing operations reflects only the results associated with the LPG transportation business which began on August 22, 2006 pursuant to an agreement between Rio Vista and TransMontaigne (the "LPG Transportation Business"), including all costs associated with operation of the US-Mexico Pipelines and Matamoros Terminal Facility and all indirect income and expenses of Rio Vista. Three Months Ended September 30, 2006 Compared With Three Months Ended September 30, 2005 Revenues. Revenues for the three months ended September 30, 2006, were $0.2 million. There were no revenues during the three months ended September 30, 2005 since the LPG Transportation business did not commence until August 22, 2006. All revenues prior to August 22, 2006 were derived from Rio Vista's LPG sales business and have been reclassified as discontinued operations. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold . Cost of goods sold for the three months ended September 30, 2006 was $0.4 million compared with $0.8 million for the three months ended September 30, 2005, a decrease of $0.4 million or 50.0%. The cost of goods sold consists primarily of costs associated with operation of the US - Mexico Pipelines and Matamoros Terminal Facility. All costs associated with Rio Vista's LPG sales business have been reclassified as discontinued operations. Nine Months Ended September 30, 2006 Compared With Nine Months Ended September 30, 2005 Revenues. Revenues for the nine months ended September 30, 2006, were $0.2 million. There were no revenues during the nine months ended September 30, 2005 since the LPG Transportation business did not commence until August 22, 2006. All revenues prior to August 22, 2006 were derived from Rio Vista's LPG sales business and have been reclassified as discontinued operations. Cost of goods sold. Cost of goods sold for the nine months ended September 30, 2006 was $1.4 million compared with $1.7 million for the nine months ended September 30, 2005, a decrease of $0.3 million or 17.6%. The cost of goods sold consists primarily of costs associated with operation of the US - Mexico Pipelines and Matamoros Terminal Facility. All costs associated with Rio Vista's LPG sales business have been reclassified as discontinued operations. About Rio Vista Energy Partners L.P. Rio Vista is an energy services master limited partnership that owns certain liquefied petroleum gas assets, including pipelines running from a terminal facility in Brownsville, Texas Brownsville is the county seat of Cameron County, Texas, United States, the southernmost city in Texas. As of 2005, U.S. Census estimates put Brownsville at a population of 167,493. owned by TransMontaigne Product Services, Inc. ("TransMontaigne") to a terminal facility in Matamoros, Mexico owned by Rio Vista. Pursuant to an LPG Transportation Agreement with TransMontaigne, Rio Vista uses its assets to transport LPG exclusively for TransMontaigne on a fee-for-services basis. Rio Vista seeks to grow through the acquisition of qualified oil and gas assets. All of Rio Vista's common units were distributed to the stockholders of Penn Octane oc·tane n. 1. Any of various isomeric paraffin hydrocarbons with the formula C8H18, found in petroleum and used as a fuel and solvent. 2. An octane number. Corporation ("Penn Octane") on September 30, 2004. 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. Certain of the statements in this news release are forward-looking statements, including statements regarding the tax consequences of ownership of common units, including those resulting from the sale of assets to TransMontaigne, the use of the LPG assets retained by Rio Vista, and the possible acquisition of qualified oil and gas assets. Although these statements reflect Rio Vista's beliefs, they are subject to uncertainties and risks that could cause actual results to differ materially from expectations. The tax consequences of ownership of common units, including the sale of assets to TransMontaigne, are dependent on the specific tax circumstances of each unitholder. Even with the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the sale of LPG assets to TransMontaigne, Rio Vista may not have sufficient available cash to pay minimum quarterly distributions. In addition, Rio Vista may not distribute sufficient cash to meet the tax obligations of unitholders associated with the ownership of common units. If Rio Vista is not able to obtain adequate financing and does not receive sufficient revenues from the use of its retained LPG assets, Rio Vista would suffer material adverse consequences to its LPG transportation business and will not have sufficient available cash to pay minimum quarterly distributions. If Rio Vista does not have sufficient capital resources for acquisitions or opportunities for expansion, Rio Vista's growth will be limited. Rio Vista may be unable to complete future acquisitions of qualified oil and gas assets or other transactions and, even if completed, acquisitions may not prove successful. Additional information regarding risks affecting Rio Vista's business may be found in Rio Vista's most recent reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , Form 10-Q Form 10-Q See 10-Q. and Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its registration statement on Form 10 and Penn Octane's most recent reports on Form 8-K, Form 10-Q and Form 10-K filed with the Securities and Exchange Commission. |
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