(Amounts in thousands of U.S. dollars, except share and per share data,
or as indicated)
TORONTO, Nov. 13 /CNW/ - TSX:WPO: World Point Terminals Inc. ("World
Point") and its subsidiaries (the "Company") own and operate 14 million
barrels of liquid bulk storage and terminal facilities located in the United
States of 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. The Company
also has a 50 percent interest in a joint venture that operates a fleet of
tugboats around Grand Bahama Island in the Bahamas ("Freepoint").
Revenues and profits for the nine months ended September 30, 2007 reflect
the benefits of the rate increases put in place during 2006 and 2007 and the
acquisition of the 60 percent interest in the Galveston terminal not owned in
the first half of 2006. During the third quarter of 2007 virtually 100% of the
Company's tankage remained under contract, although four tanks were out of
service throughout much of the quarter. Amounts designated in this report as
from continuing operations exclude the former operations of the Company in the
Netherlands ("Europoint") which were sold effective September 30, 2006.
Revenues and operating expenses are from continuing operations only.
For the first nine months of 2007, consolidated revenues increased by
$16,086 (43%) to $53,769 compared to $37,683 in 2006.
Center Point's revenues increased by $10,713 for the first nine months of
2007 compared to the first nine months of 2006. $5,754 of this increase was
generated by the Galveston terminal, which was only 40 percent owned until
August 31, 2006 when the other 60 percent of the shares were acquired. The
remainder results from rate increases at various Center Point locations and
expansion at the Baton Rouge terminal.
South Riding Point's revenues increased by $4,845 for the first nine
months of 2007 as compared to the first nine months of 2006. This increase
reflects the rate increases put in place in the fourth quarter of 2006 and
greater marine activity.
Freepoint's revenues increased by $528 for the first nine months of 2007
compared to the first nine months of 2006. This increase reflects an increase
in ship movements and rates at the Freeport Container Port.
Center Point had three to four tanks which were out of service for
maintenance during most of the third quarter. On average we expect to have two
tanks remain out of service until the fourth quarter of the year as Center
Point continues to repair and upgrade its facilities. With the exception of
the lost revenues on these out of service tanks at Center Point and marine
revenues at South Riding Point, which are unpredictable, revenues for the
Company's operating segments are expected to continue at levels consistent
with the first nine months of 2007 for the remainder of the year.
For the first nine months of 2007 as compared to the first nine months of
2006, operating expenses were $22,523 versus $18,890, a 19% increase. A large
percentage of this $3,633 increase is due to the operating expenses of the
Galveston terminal not included in the 2006 amount. Operating expenses for the
remainder of 2007 are expected to continue at levels similar to the first nine
Net income for the first nine months of 2007 was $11,250 versus $149,159
for the first nine months of 2006 and basic earnings per share were $0.478
versus $6.392 cents. Diluted earnings per share for the first nine months
decreased from $6.356 in 2006 to $0.468 in 2007. The 2006 results included a
gain on the disposal of a business segment of $141,549. Net income from
continuing operations for the first nine months of 2007 was $13,541 versus
$6,791 for the first nine months of 2006. Basic earnings per share from
continuing operations increased from $0.291 to $0.576 and diluted earnings per
share increased from $0.289 to $0.563. Segmented operating profit (net income
excluding income taxes, general corporate expenses and equity earnings from
investment) increased from $12,145 in 2006 to $21,468 in 2007.
Cash flows from operations during the first nine months of 2007 were
$18,553 compared to $23,189 for the same period in 2006. The key factor in
this change is the inclusion of Europoint's cash flows in the 2006 figures.
Excluding the purchase of new terminals, the Company invested $21,497 in
property, plant and equipment during the first nine months of 2007 compared
with $20,426 in the same period of 2006. The investments in 2006 include
$6,043 at the Europoint facility. South Riding Point has commenced
construction of two additional tanks at the Bahamas facility which will add
1.5 million barrels of storage capacity in the second quarter of 2008.
The Company anticipates that revenues and net income for the remainder of
2007 will be consistent with the levels generated during the first nine
months. The Company continues to look for opportunities to expand its
business, whether through acquisitions of expansion of existing facilities, if
there is a high certainty that the additional capacity will generate
acceptable levels of positive operating cash flow.
On behalf of the Board:
Bernard A. Roy
November 13, 2007
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 unaudited
financial statements contained in this release and the audited financial
statements in the Company's 2006 Annual Report.
For further information:
For further information: Bernard A. Roy, President, (514) 847-4519