Aegean Marine Petroleum Network Inc. announced financial and operating results for the fourth quarter ended December 31st, 2013.
Fourth Quarter Highlights and Full Year Highlights
Recorded sales volumes of 2,384,376 metric tons in Q4 2013 and 9,941,061 for the full year.
Recorded gross profit of $75.0 million in Q4 2013 and $286.0 million for the full year.
Recorded operating income of $14.5 million for the quarter and $48.8 million for the full year.
Recorded net income attributable to Aegean shareholders of $7.0 million or $0.15 basic diluted earnings per share in Q4 2013 and $27.1 million or $0.58 basic and diluted earnings per share for the full year.
Net income attributable to Aegean shareholders adjusted for the sale of non-core assets was $7.5 million or $0.16 basic and diluted earnings per share in Q4 2013 and $27.2 or $0.58 basic diluted earnings per share for the full year.
Recorded EBITDA of $22.4 million in Q4 2013 and $83.2 million for the full year.
EBITDA adjusted for the sale of non-core assets was $22.9 million in Q4 2013 and $83.4 million for the full year. 1
Acquired Hess Corporation's U.S. East Coast bunkering business unit and launched Aegean US East Coast Operations.
Successfully executed $86.3 million convertible note offering.
"We closed 2013 with great momentum and the fourth quarter marked our third consecutive full year of profitability," said E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network. "Despite persisting market headwinds, we executed on our strategy and once again demonstrated the strength of our business model and our ability to drive compelling returns in a challenging environment. By leveraging our flexible infrastructure, we successfully drove profitable top-line growth and opportunistically captured additional voyage and storage revenues. At the same time, we monetized non-core vessels, which will allow Aegean to further drive profitability by increasing our fleet utilization over time, reducing our capital expenditures and streamlining our expense run-rate."
"We have built a steady track record of growth and we believe that the continued execution on our core initiatives will enhance shareholder value," said Mr. Tavlarios. "We continue to build significant and sustainable internal growth drivers, including our new Aegean U.S. East Coast business and our soon-to-be launched Fujairah storage facility, which we believe will allow Aegean to continue to succeed should market headwinds persist. For 2014, however, we are beginning to see indications that the macro environment will improve steadily throughout the year, and we believe Aegean is uniquely positioned to incrementally benefit from this strengthening market."
The Company achieved net income attributable to Aegean shareholders for the three months ended December 31, 2013 of $7.0 million, or $0.15 basic diluted earnings per share. Net income attributable to Aegean shareholders excluding a non-cash loss from the sale of non-core assets was $7.5 million or $0.16 basic and diluted earnings per share. For the three months ended December 31, 2012, the Company recorded net income attributable to Aegean shareholders of $3.3 million, or $0.07 basic and diluted earnings per share. Net income attributable to Aegean shareholders excluding a non-cash loss from the sale of a non core vessel was $5.1 million or 0.11 basic and diluted earnings per share.
Total revenues for the three months ended December 31, 2013, decreased by 15.2% to $1,470.4 million compared with $1,734.7 million reported for the same period in 2012. For the three months ended December 31, 2013, sales of marine petroleum products decreased by 15.7% to $1,453.0 million compared with $1,724 million for the same period in 2012. Gross profit, which equals total revenue less directly attributable cost of revenue increased by 4.5% to $75.0 million in the fourth quarter of 2013 compared with $71.8 million in the same period in 2012.
For the three months ended December 31, 2013, the volume of marine fuel sold by the Company decreased by 12.6% to 2,384,376 metric tons compared with 2,729,070 metric tons in the same period in 2012.
Operating income for the fourth quarter of 2013 amounted to $14.5 million compared to $11.3 million for the same period in 2012. Operating expenses decreased by $0.1 million, or 0.2%, to $60.5 million for the three months ended December 31, 2013, compared with $60.6 million for the same period in 2012.
Liquidity and Capital Resources
Net cash provided by operating activities was $38.7 million for the three months ended December 31, 2013. Net income, as adjusted for non-cash items (as defined in Note 9) was $18.0 million for the period.
Net cash used in investing activities was $151.3 million for the three months ended December 31, 2013, due to our new acquisition in U.S. East Coast and to the advances for other fixed assets under construction.
Net cash provided by financing activities was $102.4 million for the three months ended December 31, 2013, primarily driven by our new facility to finance the purchase of the inventories in the U.S. East Coast.
As of December 31, 2013, the Company had cash and cash equivalents of $62.6 million and working capital of $244.5 million. Non-cash working capital, or working capital excluding cash and debt, was $541.9 million.
As of December 31, 2013, the Company had $615.0 million in available liquidity, which includes unrestricted cash and cash equivalents of $62.6 million and available undrawn amounts under the Company's working capital facilities of $552.4 million, to finance working capital requirements.
The weighted average basic and diluted shares outstanding for the three months ended December 31, 2013 were 45,685,472. The weighted average basic and diluted shares outstanding for the three months ended December 31, 2012 were 45,501,233.
Spyros Gianniotis, Aegean's Chief Financial Officer, stated, "Our focus on growing revenues and strategically leveraging our fixed infrastructure to drive profitability continues to yield strong results. During the quarter we built on our track record of solid financial performance and believe we are very well positioned for the year ahead. We have also continued to maintain our financial flexibility and with the recent establishment of our $150 million credit facility, we now have a total of approximately $1.3 billion in revolving bank borrowing capacity, which will allow us to support our key expansion initiatives such as Aegean Bunkering USA. Our strong financial position and dynamic business model distinguish Aegean from the competitive landscape and we look forward to building on our history of enhancing value for our shareholders."
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