(Amounts in thousands of U.S. dollars, except share and per share data,
or as indicated)
TORONTO, Aug. 10 /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 six months ended June 30, 2007 reflect the
benefits of the rate increases put in place during 2006 and the acquisition of
the 60 percent interest in the Galveston terminal not owned in the first half
of 2006. During the second quarter of 2007 virtually 100% of the Company's
tankage remained under contract, although three 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.
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.
For the first six months of 2007, consolidated revenues increased by
$11,431 (48%) to $35,462 compared to $24,031 in 2006.
Center Point's revenues increased by $7,617 for the first six months of
2007 compared to the first six months of 2006. $3,739 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 $3,500 for the first six
months of 2007 as compared to the first six months of 2006. This increase
reflects the rate increases put in place in the fourth quarter of 2006 and
greater marine activity in the first half of 2007.
Freepoint's revenues increased by $314 for the first six months of 2007
compared to the first six months of 2006. This increase reflects an increase
in ship movements and rates at the Freeport Container Port.
Center Point had three tanks which are out of service for maintenance
during most of the second quarter. On average we expect to have two tanks
remains 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 the three 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 half for
the remainder of 2007.
For the first six months of 2007 as compared to the first six months of
2006, operating expenses were $15,708 versus $12,468, a 26% increase. A large
percentage of this increase ($2,260) 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 six
Net income for the first six months of 2007 was $7,529 versus $6,578 for
the first six months of 2006 and basic earnings per share were $0.321 versus
$0.282 cents. First six months diluted earnings per share increased from
$0.281 in 2006 to $0.313 in 2007. Net income from continuing operations for
the first six months of 2007 was $7,956 versus $5,179 for the first six months
of 2006. Basic earnings per share from continuing operations increased from
$0.222 to $0.339 and diluted earnings per share increased from $0.221 to
$0.331. Segmented operating profit (net income excluding income taxes, general
corporate expenses and equity earnings from investment) increased from $7,600
in 2006 to $13,434 in 2007.
Cash flows from operations during the first six months of 2007 were
$7,847 compared to $14,355 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 $9,809 in
property, plant and equipment during the first six months of 2007 compared
with $13,989 in the same period of 2006. The investments in 2006 include
$4,977 at the Europoint facility.
On May 3, 2006, Center Point borrowed $15,000 from a commercial bank and
used $11,144 to repay the outstanding borrowing from an affiliate. The $15,000
borrowing from the commercial bank carries a 6.17% interest rate and a term of
The Company anticipates that revenues and net income for the remainder of
2007 will be consistent with the levels generated during the first six 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
August 10, 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, (403) 261-3700