World Point Terminals Inc. - Third quarter 2009 report to our shareholders


    
    (Amounts in thousands of U.S. dollars, except share and per share data,
    or as indicated)
    
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<p><location>MONTREAL</location>, <chron>Nov. 13</chron> /CNW/ - TSX:WPO: World Point Terminals Inc. (the "Company") is pleased to announce its results for the third quarter of 2009. During the first nine months of 2009 virtually 100% of the Company's tankage remained under contract.</p>
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<p>RESULTS OF OPERATIONS</p>
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<p>Revenues from continuing operations for the first nine months of 2009 were <money>$71,999</money> compared to <money>$59,791</money> in 2008, an increase of 20 percent. 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.</p>
<p>Center Point's revenues grew by <money>$1,378</money> for the first nine months of 2009 or 3 percent as compared to the first nine months of 2008.</p>
<p>South Riding Point's revenues increased by <money>$10,867</money> or 77 percent for the first nine months of 2009 compared to the same period in 2008. This increase was attributable 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.</p>
<p>Freepoint's revenues decreased by <money>$37</money> for the first nine months of 2009 or 2 percent compared to the first nine months of 2008. This decrease is a result of decreased activity.</p>
<p>Operating expenses for the first nine months of 2009 totaled <money>$26,554</money> as compared to <money>$26,067</money> for the first nine months of 2008, a 2 percent increase. This increase was primarily attributable to the business license fee imposed by the Bahamian government on South Riding Point.</p>
<p>Net income for the first nine months of 2009 was <money>$21,123</money> versus <money>$13,366</money> for the first nine months of 2008 and basic earnings per share were US$0.857 versus US$0.552. Diluted earnings per share increased to US$0.855 in the first nine months of 2009 from US$0.552 in the first nine months of 2008. Income from continuing operations in the first nine months of 2009 was <money>$21,285</money> versus <money>$14,457</money> in the first nine months of 2008 and basic earnings per share from continuing operations were US$0.864 in the first nine months of 2009 versus US$0.597 in the first nine months of 2008. It should be noted that the results of operations for the first nine months of 2009 reflect a gain related to insurance proceeds of <money>$776</money>. The 2008 results of operations also include a gain from insurance proceeds of <money>$1,536</money>. The insurance gains are not part of the underlying operations of the business, but rather a result of our insurance proceeds received on previously incurred insurance claims.</p>
<p>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.</p>
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<p>Recent Developments/Outlook</p>
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<p>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 2009. 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.</p>
<p>On <chron>June 17, 2009</chron>, the Company issued 1,000,000 shares in a private placement. The price per share was C$10.34. The Company received <money>$9,140</money> for the placement of the shares. On <chron>September 15, 2009</chron> the Company used the proceeds to acquire the terminal assets located on the Weirton, West Virginia land from an affiliate of the purchaser of the shares in the private placement.</p>
<p>On <chron>July 8, 2009</chron>, the Company signed a stock purchase and sale agreement with StatoilHydro ASA ("Statoil") for the possible sale of its Bahamian operations, which was subject to various Bahamian government approvals. Those operations include the South Riding Point storage terminal and the fifty percent interest in the Freepoint tug boat business, both located on Grand Bahama Island. On <chron>October 22, 2009</chron>, the day after all approvals were received, the Company completed the sale of South Riding Point. The final purchase price for the shares was <money>$258,249</money>. In addition, South Riding Point was paid for working capital and related items.</p>
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<p>General</p>
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<p>World Point Terminals Inc. ("World Point") and its subsidiaries (the "Company") own and operate 10.4 million barrels of liquid bulk storage and terminal facilities located in <location>North America</location> ("Center Point"). These facilities store, blend, and transship petroleum and other liquid products as an integral part of the wholesale distribution system.</p>
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<p>Cautionary Statement Regarding Forward-Looking Statements</p>
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<p>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.</p>
<p>This discussion and analysis of operating results and the financial position of the Company should be read in conjunction with the third quarter 2009 report to shareholders and the 2008 audited financial statements of the Company and Management's Discussion and Analysis as filed on Sedar.</p>
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    On behalf of the Board:
    Bernard A. Roy
    President and CEO
    November 13, 2009
    (514) 847-4519
    

For further information: For further information: Bernard A. Roy, President and CEO, (514) 847-4519

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WORLD POINT TERMINALS INC.

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