PBF Logistics LP (NYSE:PBFX) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 11:00 am ET


PBF Logistics LP (NYSE:PBFX) Q2 2020 Earnings Conference Call - Final Transcript


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Welcome to the PBF Logistics Second Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions] Please be advised, today's program may be recorded.

It is now my pleasure to turn the floor over to Colin Murray of Investor Relations. Sir, you may begin.

Colin Murray

Thank you, Aaron. Good morning and welcome to today's call. With me today are Matt Lucey, Executive Vice President; Erik Young, our CFO; and several other members of the partnership's senior management team. If you would like a copy of our earnings release, it is available on our website.

Before we begin, I'd like to direct your attention to the forward-looking statements disclaimer contained in today's press release. In summary, it outlines that statements in the press release and on this conference call that state the partnership's or management's expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions under federal securities laws. There are many factors that could cause actual results to differ from our expectations, including those we've described in our filings with the SEC.

As noted in our press release, we will be using certain non-GAAP measures while describing the partnership's operating performance and financial results. For reconciliations of non-GAAP measures to the appropriate GAAP figure, please refer to the supplemental tables provided in today's press release.

I'll now turn the call over to Matt Lucey.

Matthew C. Lucey

Thank you, Colin. Good morning, everyone, and thank you for joining us on today's call. Despite the challenges presented by the pandemic, PBF Logistics operated well during the second quarter. We were impacted by the market turmoil as we saw total revenues come down, primarily due to lower throughputs at our terminals and pipelines as demand declined. This was partially offset by increases in our storage segment. Overall, revenues were down less than 5%, due in large part to our strong sponsor relationship and contract structure that provides support for 90% of our base business.

Our EBITDA and distributable cash flow were up versus last quarter as a result of lower costs. We reduced our corporate overhead, and operating expenses came down due to lower throughputs and savings. We have also reduced capital expenditures, and we are targeting $8 million to $10 million in savings for a total 2020 forecasted capex of approximately $20 million. Going forward, results should continue to be stable as we expect to see comparable consistency in our revenue stream, durable cost decreases and potentially an incremental benefit as demand recovers. Today, we declared a distribution of $0.30 per unit. We will continue to review our distribution policy going forward with respect to Company performance, market conditions, and alternate use of funds.

I'll now turn it over to Erik.

Erik Young

Thank you, Matt. Good morning, everyone, and thank you for joining us on today's call. We reported second quarter net income attributable to the limited partners of $37.5 million. Adjusted partnership EBITDA was $60 million, which includes approximately $1.1 million of non-cash unit-based compensation, transaction-related expenses, and residual