(Amounts in thousands of U.S. dollars, except share and per share data,
or as indicated)
MONTREAL, May 14 /CNW/ - TSX:WPO: World Point Terminals Inc. (the
"Company") is pleased to announce its results for the first quarter of 2009.
During the first three months of 2009 virtually 100% of the Company's tankage
remained under contract.
RESULTS OF OPERATIONS
Revenues from continuing operations for the first three months of 2009
were $24,055 compared to $18,666 in 2008 - a 29 percent increase. This
increase primarily results from the continued growth in storage capacity
within Center Point and South Riding Point. Additionally, the Company has seen
marine activity increase at its South Riding Point facility which generates
additional port fee revenues.
Center Point's revenues grew by $845 for the first three months of 2009
or 6 percent as compared to the first three months of 2008.
South Riding Point's revenues increased by $4,491 or 105 percent for the
first three months of 2009 compared to the same period in 2008. This increase
was attributed to both higher storage and marine revenues. Storage revenues
increased due to 1.5 million barrels of new storage coming into service in the
third and fourth quarters of 2008. While the Company anticipates revenues from
marine activity to remain strong throughout 2009, these revenues are difficult
to predict as they fluctuate based on the business decisions of the Company's
customers and general market conditions.
Freepoint's revenues increased by $53 for the first three months of 2009
or 7 percent compared to the first three months of 2008. This increase is a
result of rate increases and fuel-surcharges.
Operating expenses for the first three months of 2009 totaled $8,735 as
compared to $8,125 for the first three months of 2008, an 8 percent increase.
This increase was primarily attributable to increased repair and maintenance
costs at Center Point's Chesapeake and Pine Bluff facilities. Overall, repairs
and maintenance costs increased by $347 for the three months ended March 31,
Net income for the first three months of 2009 was $8,469 versus $5,353
for the first three months of 2008 and basic earnings per share were US$0.350
versus US$0.221. Diluted earnings per share increased to US$0.349 in the first
three months of 2009 from US$0.221 in the first three months of 2008. Income
from continuing operations in the first three months of 2009 was $8,399 versus
$5,949 in the first three months of 2008 and basic earnings per share from
continuing operations were US$0.347 in the first three months of 2009 versus
US$0.246 in the first three months of 2008. It should be noted that the
results of operations for the first three months of 2009 reflect a gain
related to insurance proceeds of $550. The 2008 results of operations include
a gain from insurance proceeds of $1,536. The insurance gains are not
attributed to the underlying operations of the business, but rather the
accounting for our ongoing insurance claims.
Operating income (net income excluding income taxes, general corporate
expenses and discontinued operations) increased from $8,647 for the first
three months of 2008 to $11,483 for the first three months of 2009.
Additional information by operating segment is included in the footnotes
to the interim financial statements filed on Sedar. The Company believes that
information by operating segment provides the reader with a better
understanding of the important factors affecting its results.
The outlook for the remainder of the 2009 fiscal year is positive as
virtually all of the Company's tankage continues to be under contract through
the remainder of the year. Market conditions have allowed the Company to
maintain or increase rates at its facilities; however, management cannot give
any assurance that the existing market rates will continue when contracts come
up for renewal. Center Point's expansion project at its Galveston terminal is
in progress which will bring its total capacity to 1.6 million barrels.
World Point Terminals Inc. ("World Point") and its subsidiaries (the
"Company") own and operate 16.1 million barrels of liquid bulk storage and
terminal facilities located in North America ("Center Point") and the Bahamas
("South Riding Point"). These facilities store, blend, and transship petroleum
and other liquid products as an integral part of the wholesale distribution
system. Through a joint venture, the Company also operates a fleet of tugboats
around Grand Bahama Island in the Bahamas ("Freepoint").
On behalf of the Board:
Bernard A. Roy
President and CEO
May 14, 2009
Cautionary Statement Regarding Forward-Looking Statements
Some of the statements contained in this release may be forward-looking
statements, such as estimates and statements that describe the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition to exist or occur. Since
forward-looking statements, by their very nature, involve inherent risks and
uncertainties, actual results in the future could differ materially from those
currently anticipated in such statements by reason of factors including, but
not limited to, changes in economic and market conditions and changes in world
political stability. World Point Terminals will not update or revise any
forward-looking statements for new information, future events or otherwise.
This discussion and analysis of operating results and the financial
position of the Company should be read in conjunction with the first quarter
2009 report to shareholders and the 2008 audited financial statements of the
Company and Management's Discussion and Analysis as filed on Sedar.
For further information:
For further information: Bernard A. Roy, President and CEO, (514)