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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------
FORM 10-Q
(Mark One)
[X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended JUNE 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _______________________to_______________________
COMMISSION FILE NUMBER 333-18455
--------------------
STATIA TERMINALS INTERNATIONAL N.V.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
NETHERLANDS ANTILLES 52-2003102
------------------------------ -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
TUMBLEDOWN DICK BAY
ST. EUSTATIUS, NETHERLANDS ANTILLES
(011) 5993-82300
----------------------------------------------------------------------------
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
STATIA TERMINALS CANADA, INCORPORATED
------------------------------------------------------
(Exact name of registrant as specified in its charter)
NOVA SCOTIA, CANADA 98-0164788
------------------------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3817 PORT MALCOLM ROAD
PORT HAWKESBURY, NOVA SCOTIA B0E 2V0
(902) 625-1711
--------------------------------------------------------------------------
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
--------------------
Indicate by check mark whether each of the registrants: (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes [X] No [ ]
The equity securities of the registrants have not been, and are not
required to be, registered under either the Securities Act of 1933 or the
Securities Exchange Act of 1934.
<PAGE>
STATIA TERMINALS INTERNATIONAL N.V.
AND
STATIA TERMINALS CANADA, INCORPORATED
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
PAGE NO.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets 1
Consolidated Statements of Income 2
Consolidated Statement of Cash Flows 3
Notes to Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 13
Item 3. Quantitative and Qualitative Disclosures About Market Risk 17
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 18
Item 2. Changes in Securities 18
Item 3. Defaults Upon Senior Securities 18
Item 4. Submission of Matters to a Vote of Security Holders 18
Item 5. Other Information 18
Item 6. Exhibits and Reports on Form 8-K 18
THIS QUARTERLY REPORT ON FORM 10-Q (THE "REPORT") CONTAINS
FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF 27A OF THE SECURITIES ACT OF
1933. DISCUSSIONS CONTAINING SUCH FORWARD-LOOKING STATEMENTS MAY BE FOUND IN
ITEMS 1, 2 AND 3 OF PART I HEREOF, AS WELL AS WITHIN THIS REPORT GENERALLY. IN
ADDITION, WHEN USED IN THIS REPORT, THE WORDS "BELIEVES," "ANTICIPATES,"
"EXPECTS" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING
STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES.
ACTUAL RESULTS IN THE FUTURE COULD DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE
FORWARD-LOOKING STATEMENTS AS A RESULT OF FLUCTUATIONS IN THE SUPPLY OF AND
DEMAND FOR CRUDE OIL AND OTHER PETROLEUM PRODUCTS, CHANGES IN THE LIQUID
TERMINALING INDUSTRY, CHANGES IN GOVERNMENT REGULATIONS AFFECTING THE PETROLEUM
INDUSTRY, THE FINANCIAL CONDITION OF THE COMPANY'S CUSTOMERS, ADVERSE WEATHER
CONDITIONS, THE CONDITION OF THE UNITED STATES ECONOMY AND OTHER MATTERS SET
FORTH IN THE REPORT. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO PUBLICLY
RELEASE THE RESULTS OF ANY REVISIONS TO THESE FORWARD-LOOKING STATEMENTS THAT
MAY BE MADE TO REFLECT ANY FUTURE EVENTS OR CIRCUMSTANCES.
<PAGE>
PART I.
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
UNAUDITED
DECEMBER 31, JUNE 30,
1996 1997
------------ -----------
ASSETS:
Current assets:
Cash and cash equivalents $ 9,264 $ 8,750
Accounts receivable -
Trade, net 12,165 7,236
Other 3,096 1,286
Inventory, net 4,969 2,797
Prepaid expenses 1,036 956
Assets held for sale 20,000 20,000
--------- ---------
Total current assets 50,530 41,025
Property and equipment, net 203,187 200,561
Other non-current assets, net 6,438 6,119
--------- ---------
$ 260,155 $ 247,705
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 9,926 $ 8,096
Accrued interest expense 1,521 2,027
Accrued expenses 15,303 8,380
--------- ---------
Total current liabilities 26,750 18,503
Long-term debt 135,000 135,000
--------- ---------
Total liabilities 161,750 153,503
--------- ---------
Equity subject to reduction 20,000 20,000
Stockholders' equity:
Common stock 6 6
Additional paid-in capital 78,494 78,494
Accumulated deficit (95) (4,298)
--------- ---------
Total stockholders' equity 78,405 74,202
--------- ---------
$ 260,155 $ 247,705
========= =========
The accompanying notes are an integral part of these financial statements.
Page 1
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND ACCUMULATED DEFICIT
(DOLLARS IN THOUSANDS)
UNAUDITED UNAUDITED
QUARTER ENDED JUNE 30, YEAR TO DATE JUNE 30,
----------------------- ---------------------
1996 1997 1996 1997
---------- -------- -------- ---------
<S> <C> <C> <C> <C>
Revenues $ 38,396 $ 33,147 $ 76,849 $ 65,857
Costs of services and products sold 34,356 28,725 68,644 57,343
-------- -------- -------- --------
Gross profit 4,040 4,422 8,205 8,514
Administrative expense 1,786 1,699 3,234 3,160
-------- -------- -------- --------
Income from operations 2,254 2,723 4,971 5,354
Interest expense 1,086 3,997 2,334 7,974
-------- -------- -------- --------
Income (loss) before income taxes 1,168 (1,274) 2,637 (2,620)
Provision for income taxes 186 30 285 233
-------- -------- -------- --------
Net income (loss) 982 (1,304) 2,352 (2,853)
Preferred dividends 285 -- 566 --
-------- -------- -------- --------
Net income (loss) available to common shareholders 697 (1,304) 1,786 (2,853)
Accumulated deficit, opening balance (23,911) (2,994) -- (95)
Dividends -- -- (25,000) (1,350)
-------- -------- -------- --------
Accumulated deficit, closing balance $(23,214) $ (4,298) $(23,214) $ (4,298)
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 2
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(DOLLARS IN THOUSANDS)
UNAUDITED UNAUDITED
YEAR TO DATE YEAR TO DATE
AS OF AS OF
JUNE 30, 1996 JUNE 30, 1997
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 2,352 $ (2,853)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities-
Depreciation and amortization expense 4,999 5,384
Provision for possible bad debts 303 2
(Gain) loss on disposal of fixed assets 260 (3)
Decrease (increase) in accounts receivable-trade (2,646) 4,927
Decrease (increase) in other receivables (3,393) 1,810
Decrease (increase) in inventory (1,873) 2,172
Decrease (increase) in prepaid expenses (358) 81
Decrease (increase) in other non-current assets 755 (136)
Increase (decrease) in accounts payable 1,392 (1,829)
Decrease in accrued expenses (1,556) (6,437)
Increase (decrease) in payables to affiliates (1,115) 15
-------- --------
Net cash provided by (used in) operating activities (880) 3,133
-------- --------
Cash flows from investing activities:
Proceeds from sale of fixed assets -- 6
Purchase of property and equipment (3,077) (2,303)
-------- --------
Net cash used in investing activities (3,077) (2,297)
-------- --------
Cash flows from financing activities:
Bank loan repayments (66,400) --
Increase in notes payable 66,000 --
Increase in advances from CBI/Praxair 28,615 --
Dividends paid (25,605) (1,350)
-------- --------
Net cash provided by (used in) financing activities 2,610 (1,350)
-------- --------
Decrease in cash and cash equivalents (1,347) (514)
Cash and cash equivalents, beginning balance 1,469 9,264
-------- --------
Cash and cash equivalents, ending balance $ 122 $ 8,750
======== ========
Supplemental disclosure of cash flow information:
Cash paid for income taxes $ 490 $ 199
Cash paid for interest $ 3,549 $ 7,403
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 3
<PAGE>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(DOLLARS IN THOUSANDS)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The unaudited consolidated financial statements of Statia Terminals
International N.V. and its Subsidiaries (the "Company") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X. Accordingly, they do not include all the information and footnotes required
by generally accepted accounting principles for complete financial statements.
Significant accounting policies followed by the Company were disclosed in the
Notes to the Consolidated Financial Statements included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1996. In the opinion of the
Company's management, the accompanying consolidated financial statements contain
adjustments, consisting of normal recurring accruals, necessary to present
fairly the financial position of the Company at June 30, 1997 and the results of
operations and cash flows for the periods ended June 30, 1997 and 1996.
Operating results for the three months and six months ended June 30, 1997 are
not necessarily indicative of the results that may be expected for the year
ended December 31, 1997.
2. ACQUISITIONS
Prior to January 12, 1996, the Company was a wholly owned subsidiary of
CBI Industries, Inc. On January 12, 1996, pursuant to the merger agreement dated
December 22, 1995, CBI became a wholly owned subsidiary of Praxair, Inc. The
Praxair purchase transaction was reflected in the Company's consolidated
financial statements in accordance with the purchase method of accounting
effective January 1, 1996. On November 27, 1996, the Company acquired from
Praxair, Inc. all of the outstanding common shares of Statia Terminals, Inc. and
its subsidiaries and certain affiliates (the "CHPII Acquisition"). The CHPII
Acquisition has been accounted for under the purchase method of accounting.
Accordingly, the purchase price has been allocated on a preliminary basis to the
assets and liabilities of the Company based on their respective fair values as
of the date of the CHPII Acquisition. The preliminary estimates may be revised
at a later date. The application of purchase accounting resulted in changes to
the historical cost basis of accounting for certain assets. In addition, in
conjunction with the Praxair and CHPII Acquisitions, the Company refinanced or
paid its bank debt, retired certain preferred stock, satisfied an off-balance
sheet lease obligation and issued 11-3/4% First Mortgage Notes (the "Notes").
Accordingly, the financial information provided in the consolidated statements
of income and cash flows for the periods ended June 30, 1996 and 1997 may not be
comparable. A solid black line has been inserted in the financial statements and
in Management's Discussion and Analysis of Financial Condition and Results of
Operations where financial information may not be comparable across periods.
3. FINANCIAL STATEMENTS BY JURISDICTION
The Notes are guaranteed on a full, unconditional, joint and several
basis by each of the indirect and direct active subsidiaries of Statia Terminals
International N.V., other than Statia Terminals Canada, Incorporated (`Statia
Canada") which is a co-obligor on the Notes. Each of the subsidiary guarantors
are wholly-owned. The Company has several inactive non-guaranteeing subsidiaries
which are inconsequential, individually and in the aggregate, and which have no
assets, liabilities or operations, and are in process of being dissolved by the
Company. The following condensed combining financial data illustrates the
composition of the Company's subsidiary guarantors combined by jurisdiction as
the enforceability of the guarantees may be affected differently under the laws
of the foreign and domestic jurisdictions. Separate financial statements of the
subsidiaries are not presented because management of the Company has determined
that they are not material to investors.
Page 4
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
CONDENSED COMBINING BALANCE SHEETS
AS OF DECEMBER 31, 1996
(DOLLARS IN THOUSANDS)
GUARANTEEING SUBSIDIARIES
------------------------------------------------------------------
STATIA TERMINALS NETHERLANDS
STATIA TERMINALS CANADA, INC. ANTILLES OTHER
INTERNATIONAL N.V. (WHICH INCLUDES ALL STATIA TERMINALS THAN STATIA UNITED
(UNCONSOLIDATED) CANADIAN ENTITIES) N.V. TERMINALS N.V. STATES
------------------ ------------------- ---------------- --------------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 7,065 $ 854 $ 1,304 $ 41 $ --
Accounts receivable -
Trade, net -- 873 10,876 (88) 504
Other 54 630 2,421 33 414
Inventory, net -- 1,157 3,812 -- --
Prepaid expenses -- 67 26 1 942
Receivable from (payable to)
affiliates (11,020) -- (37) 20,557 (4,517)
Assets held for sale -- -- 10,000 -- 10,000
--------- --------- --------- --------- ----------
Total current assets (3,901) 3,581 28,402 20,544 7,343
Property and equipment, net -- 29,036 172,316 1,394 441
Investment in subsidiaries 103,040 -- -- 180,424 213
Other non-current assets, net -- 1,366 5,039 -- 33
--------- --------- --------- --------- ---------
$ 99,139 $ 33,983 $ 205,757 $ 202,362 $ 8,030
========= ========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ -- $ 688 $ 5,453 $ 43 $ 4,199
Accrued expenses 734 4,613 8,814 (29) 1,131
Accrued interest -- 316 1,205 -- --
--------- --------- --------- --------- ---------
Total current liabilities 734 5,617 15,472 14 5,330
Long-term debt -- 28,060 106,940 -- --
Payable to (receivable from) CBI
affiliates -- (1,597) 6,619 -- --
--------- --------- --------- --------- ---------
Total liabilities 734 32,080 129,031 14 5,330
--------- --------- --------- --------- ---------
Equity subject to reduction 20,000 -- -- -- --
Stockholders' equity:
Common stock 6 -- 19,395 159,006 3,000
Additional paid-in capital 78,494 2,266 56,847 43,207 --
Retained earnings (deficit) (95) (363) 484 135 (300)
--------- --------- --------- --------- --------
Total stockholders' equity 78,405 1,903 76,726 202,348 2,700
--------- --------- --------- --------
$ 99,139 $ 33,983 $ 205,757 $ 202,362 $ 8,030
========= ========= ========= ========= =========
</TABLE>
RECLASSIFICATIONS
AND CONSOLIDATED
ELIMINATIONS TOTAL
---------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ -- $ 9,264
Accounts receivable -
Trade, net -- 12,165
Other (456) 3,096
Inventory, net -- 4,969
Prepaid expenses -- 1,036
Receivable from (payable to)
affiliates (4,983) --
Assets held for sale
-- 20,000
--------- ---------
Total current assets (5,439) 50,530
Property and equipment, net -- 203,187
Investment in subsidiaries (283,677) --
Other non-current assets, net -- 6,438
--------- ---------
$(289,116) $ 260,155
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ (457) $ 9,926
Accrued expenses 40 15,303
Accrued interest -- 1,521
--------- ---------
Total current liabilities (417) 26,750
Long-term debt -- 135,000
Payable to (receivable from) CBI
affiliates (5,022) --
---------- ---------
Total liabilities (5,439) 161,750
--------- ---------
Equity subject to reduction -- 20,000
Stockholders' equity:
Common stock (181,401) 6
Additional paid-in capital (102,320) 78,494
Retained earnings (deficit) 44 (95)
--------- ---------
Total stockholders' equity (283,677) 78,405
--------- ---------
$(289,116) $ 260,155
========= =========
Page 5
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
CONDENSED COMBINING STATEMENTS OF INCOME
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 1996
(DOLLARS IN THOUSANDS)
RECLASSIFICATIONS
NETHERLANDS UNITED AND
CANADA ANTILLES STATES ELIMINATIONS TOTAL
-------- ----------- -------- ----------------- --------
<S> <C> <C> <C> <C> <C>
Revenues $ 1,975 $ 35,680 $ 2,228 $ (1,487) $ 38,396
Costs of services and products sold 1,792 31,903 391 270 34,356
-------- -------- -------- -------- --------
Gross profit 183 3,777 1,837 (1,757) 4,040
Administrative expense 510 895 2,138 (1,757) 1,786
-------- -------- -------- -------- --------
Income (loss) from operations (327) 2,882 (301) -- 2,254
Interest expense 944 142 -- -- 1,086
-------- -------- -------- -------- --------
Income (loss) before income taxes (1,271) 2,740 (301) -- 1,168
Provision for (benefit from) income taxes 175 32 (21) -- 186
-------- -------- -------- -------- --------
Net income (loss) (1,446) 2,708 (280) -- 982
Preferred dividends 285 -- -- -- 285
-------- -------- -------- -------- --------
Net income (loss) available to common
shareholders (1,731) 2,708 (280) -- 697
Retained Earnings, opening balance (1,884) (21,857) (170) -- (23,911)
Dividends -- -- -- -- --
-------- -------- -------- -------- --------
Accumulated deficit, closing balance $ (3,615) $(19,149) $ (450) $ -- $(23,214)
======== ======== ======== ======== ========
</TABLE>
Page 6
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
CONDENSED COMBINING STATEMENTS OF INCOME
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1996
(DOLLARS IN THOUSANDS)
RECLASSIFICATIONS
NETHERLANDS UNITED AND
CANADA ANTILLES STATES ELIMINATIONS TOTAL
-------- ----------- -------- ----------------- --------
<S> <C> <C> <C> <C> <C>
Revenues $ 5,235 $ 70,408 $ 4,132 $ (2,926) $ 76,849
Costs of services and products sold 5,018 62,402 822 402 68,644
-------- -------- -------- -------- --------
Gross profit 217 8,006 3,310 (3,328) 8,205
Administrative expense 965 1,776 3,821 (3,328) 3,234
-------- -------- -------- -------- --------
Income (loss) from operations (748) 6,230 (511) -- 4,971
Interest expense 2,050 284 0 -- 2,334
-------- -------- -------- -------- --------
Income (loss) before income taxes (2,798) 5,946 (511) -- 2,637
Provision for income taxes 251 95 (61) -- 285
-------- -------- -------- -------- --------
Net income (loss) (3,049) 5,851 (450) -- 2,352
Preferred dividends 566 -- -- -- 566
-------- -------- -------- -------- --------
Net income (loss) available to common
shareholders (3,615) 5,851 (450) -- 1,786
Retained earnings, opening balance -- -- -- -- --
Dividends -- (25,000) -- -- (25,000)
-------- -------- -------- -------- --------
Accumulated deficit, closing balance $ (3,615) $(19,149) $ (450) $ -- $(23,214)
======== ======== ======== ======== ========
</TABLE>
Page 7
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
CONDENSED COMBINING STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1996
(DOLLARS IN THOUSANDS)
RECLASSIFICA-
TIONS
NETHERLANDS AND
CANADA ANTILLES UNITED STATES ELIMINATIONS TOTAL
-------------- ----------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Net cash provided by (used in) operating
activities $ (6,097) $ 25,841 $(20,624) $ -- $ (880)
-------- -------- -------- -------- --------
Cash flows from investing activities:
Investment in subsidiary -- -- (7) 7 --
Purchase of property and equipment (662) (1,204) (1,211) -- (3,077)
-------- -------- -------- -------- --------
Net cash used in investing
activities (662) (1,204) (1,218) 7 (3,077)
-------- -------- -------- -------- --------
Cash flows from financing activities:
Bank loan repayments (66,400) -- -- -- (66,400)
Increase in notes payable 66,000 -- -- -- 66,000
Additional capital contribution -- 7 -- (7) --
Increase in advances to affiliates 6,823 284 21,508 -- 28,615
Dividends paid (605) (25,000) -- -- (25,605)
-------- -------- -------- -------- --------
Net cash provided by (used in)
financing activities 5,818 (24,709) 21,508 (7) 2,610
-------- -------- -------- -------- --------
Increase (decrease) in cash and cash equivalents (941) (72) (334) -- (1,347)
Cash and cash equivalents, beginning balance 1,207 300 (38) -- 1,469
-------- -------- -------- -------- --------
Cash and cash equivalents, ending balance $ 266 $ 228 $ (372) $ -- $ 122
======== ======== ======== ======== ========
Supplemental disclosure of cash flow information:
Cash paid for income taxes $ 81 $ 140 $ 269 $ -- $ 490
Cash paid for interest $ -- $ 3,549 $ -- $ -- $ 3,549
</TABLE>
Page 8
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
CONDENSED COMBINING BALANCE SHEETS
AS OF JUNE 30, 1997
(DOLLARS IN THOUSANDS)
GUARANTEEING SUBSIDIARIES
------------------------------------------------------------
STATIA TERMINALS NETHERLANDS
STATIA TERMINALS CANADA, INC. STATIA TERMINALS ANTILLES OTHER
INTERNATIONAL N.V. (WHICH INCLUDES ALL N.V. THAN STATIA
(UNCONSOLIDATED) CANADIAN ENTITIES) CONSOLIDATED TERMINALS N.V.
----------------- ------------------- ---------------- --------------
<S> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1 $ 374 $ 7,558 $ 32
Accounts receivable -
Trade, net -- 1,248 5,666 --
Other 54 1,146 30 2
Inventory, net -- 1,004 1,793 --
Prepaid expenses -- 86 52 1
Assets held for sale -- -- 10,000 --
--------- --------- --------- ---------
Total current assets 55 3,858 25,099 35
Property and equipment, net -- 28,540 170,642 1,373
Investment in subsidiaries 94,447 -- -- 181,132
Other non-current assets, net -- 1,272 4,678 --
--------- --------- --------- ---------
$ 94,502 $ 33,670 $ 200,419 $ 182,540
========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ -- $ 1,207 $ 4,132 $ 5
Accrued interest expense -- 421 1,606 --
Accrued expenses 56 3,968 2,984 (9)
Receivable from (payable to) affiliates 244 (429) 11,727 (17,827)
--------- --------- --------- ---------
Total current liabilities 300 5,167 20,449 (17,831)
Long-term debt -- 28,060 106,940 --
--------- --------- --------- ---------
Total liabilities 300 33,227 127,389 (17,831)
--------- --------- --------- ---------
Equity subject to reduction 20,000 -- -- --
Stockholders' equity:
Common stock 6 -- 19,395 159,006
Additional paid-in capital 78,494 2,266 59,526 43,207
Retained earnings (deficit) (4,298) (1,823) (5,891) (1,842)
--------- --------- --------- ---------
Total stockholders' equity 74,202 443 73,030 200,371
--------- --------- --------- ---------
$ 94,502 $ 33,670 $ 200,419 $ 182,540
========= ========= ========= =========
GUARANTEEING SUBSIDIARIES
-------------------------
RECLASSIFICATIONS
AND CONSOLIDATED
UNITED STATES ELIMINATIONS TOTAL
------------- ----------------- ------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 785 $ -- $ 8,750
Accounts receivable -
Trade, net 322 -- 7,236
Other 54 -- 1,286
Inventory, net -- -- 2,797
Prepaid expenses 817 -- 956
Assets held for sale 10,000 -- 20,000
--------- --------- ---------
Total current assets 11,978 -- 41,025
Property and equipment, net 6 -- 200,561
Investment in subsidiaries 203 (275,782) --
Other non-current assets, net 169 -- 6,119
--------- --------- ---------
$ 12,356 $(275,782) $ 247,705
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,752 $ -- $ 8,096
Accrued interest expense -- -- 2,027
Accrued expenses 1,413 (47) 8,365
Receivable from (payable to) affiliates 6,300 -- 15
--------- --------- ---------
Total current liabilities 10,465 (47) 18,503
Long-term debt -- -- 135,000
--------- --------- ---------
Total liabilities 10,465 (47) 153,503
--------- --------- ---------
Equity subject to reduction -- -- 20,000
3,000 (181,401) 6
Stockholders' equity: -- (104,999) 78,494
Common stock (1,109) 10,665 (4,298)
Additional paid-in capital --------- --------- ---------
Retained earnings (deficit) 1,891 (275,735) 74,202
--------- --------- ---------
Total stockholders' equity $ 12,356 $(275,782) $ 247,705
========= ========= =========
</TABLE>
Page 9
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
CONDENSED COMBINING STATEMENTS OF INCOME
FOR THE THREE MONTH PERIOD ENDING JUNE 30, 1997
(DOLLARS IN THOUSANDS)
GUARANTEEING SUBSIDIARIES
------------------------------------------------------------------
STATIA TERMINALS NETHERLANDS
STATIA TERMINALS CANADA, INC. ANTILLES OTHER
INTERNATIONAL N.V. (WHICH INCLUDES ALL STATIA TERMINALS THAN STATIA UNITED
(UNCONSOLIDATED) CANADIAN ENTITIES) N.V. TERMINALS N.V. STATES
----------------- ------------------- ---------------- -------------- --------
<S> <C> <C> <C> <C> <C>
Revenues $ 5,864 $ 4,642 $ 29,331 $ 5,981 $ 2,150
Costs of services and products sold -- 3,601 25,779 114 734
-------- -------- -------- -------- --------
Gross Profit 5,864 1,041 3,552 5,867 1,416
Administrative expense 117 557 837 -- 1,775
-------- -------- -------- -------- --------
Income (loss) from operations 5,747 484 2,715 5,867 (359)
Interest expense -- 816 3,181 -- --
-------- -------- -------- -------- --------
Income (loss) before income taxes 5,747 (332) (466) 5,867 (359)
Provision for income taxes -- 15 71 -- (56)
-------- -------- -------- -------- --------
Net income (loss) 5,747 (347) (537) 5,867 (303)
Earnings (loss) from equity investments (7,051) -- -- (887) (1)
-------- -------- -------- -------- --------
Net income (loss) available to common
shareholders (1,304) (347) (537) 4,980 (304)
Retained earnings (accumulated deficit),
opening balance (2,994) (1,476) 510 (958) (805)
Dividends -- -- (5,864) (5,864) --
-------- -------- -------- -------- --------
Retained earnings (accumulated deficit),
closing balance $ (4,298) $ (1,823) $ (5,891) $ (1,842) $ (1,109)
======== ======== ======== ======== ========
</TABLE>
RECLASSIFICATIONS
AND CONSOLIDATED
ELIMINATIONS TOTAL
----------------- ------------
Revenues $(14,821) $ 33,147
Costs of services and products sold (1,503) 28,725
-------- --------
Gross Profit (13,318) 4,422
Administrative expense (1,587) 1,699
-------- --------
Income (loss) from operations (11,731) 2,723
Interest expense -- 3,997
-------- --------
Income (loss) before income taxes (11,731) (1,274)
Provision for income taxes -- 30
-------- --------
Net income (loss) (11,731) (1,304)
Earnings (loss) from equity investments 7,939 --
-------- --------
Net income (loss) available to common
shareholders (3,792) (1,304)
Retained earnings (accumulated deficit),
opening balance 2,729 (2,994)
Dividends 11,728 --
-------- --------
Retained earnings (accumulated deficit),
closing balance $ 10,665 $ (4,298)
======== ========
Page 10
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
CONDENSED COMBINING STATEMENTS OF INCOME
FOR THE SIX MONTH PERIOD ENDING JUNE 30, 1997
(DOLLARS IN THOUSANDS)
GUARANTEEING SUBSIDIARIES
------------------------------------------------------------------
STATIA TERMINALS NETHERLANDS
STATIA TERMINALS CANADA, INC. ANTILLES OTHER
INTERNATIONAL N.V. (WHICH INCLUDES ALL STATIA TERMINALS THAN STATIA UNITED
(UNCONSOLIDATED) CANADIAN ENTITIES) N.V. TERMINALS N.V. STATES
----------------- ------------------- ---------------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Revenues $ 5,865 $ 7,363 $ 58,633 $ 6,082 $ 4,256
Costs of services and products sold -- 6,107 51,041 215 1,355
-------- -------- -------- -------- --------
Gross Profit 5,865 1,256 7,592 5,867 2,901
Administrative expense 79 1,019 1,652 -- 3,648
-------- -------- -------- -------- --------
Income (loss) from operations 5,786 237 5,940 5,867 (747)
Interest expense -- 1,658 6,311 -- 5
-------- -------- -------- -------- --------
Income (loss) before income taxes 5,786 (1,421) (371) 5,867 (752)
Provision for income taxes -- 39 140 8 46
-------- -------- -------- -------- --------
Net income (loss) 5,786 (1,460) (511) 5,859 (798)
Earnings (loss) from equity investments (8,639) -- -- (1,972) (11)
-------- -------- -------- -------- --------
Net income (loss) available to common
shareholders (2,853) (1,460) (511) 3,887 (809)
Retained earnings (accumulated deficit),
opening balance (95) (363) 484 135 (300)
Dividends (1,350) -- (5,864) (5,864) --
-------- -------- -------- -------- --------
Retained earnings (accumulated deficit),
closing balance $ (4,298) $ (1,823) $ (5,891) $ (1,842) $ (1,109)
======== ======== ======== ======== ========
</TABLE>
RECLASSIFICATIONS
AND CONSOLIDATED
ELIMINATIONS TOTAL
----------------- -------------
Revenues $(16,342) $ 65,857
Costs of services and products sold (1,375) 57,343
-------- --------
Gross Profit (14,967) 8,514
Administrative expense (3,238) 3,160
-------- --------
Income (loss) from operations (11,729) 5,354
Interest expense -- 7,974
-------- --------
Income (loss) before income taxes (11,729) (2,620)
Provision for income taxes -- 233
-------- --------
Net income (loss) (11,729) (2,853)
Earnings (loss) from equity investments 10,622 --
-------- --------
Net income (loss) available to common
shareholders (1,107) (2,853)
Retained earnings (accumulated deficit),
opening balance 44 (95)
Dividends 11,728 (1,350)
-------- --------
Retained earnings (accumulated deficit),
closing balance $ 10,665 $ (4,298)
======== ========
Page 11
<PAGE>
<TABLE>
<CAPTION>
STATIA TERMINALS INTERNATIONAL N.V. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED COMBINING STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1997
(DOLLARS IN THOUSANDS)
GUARANTEEING SUBSIDIARIES
---------------------------------------------------------------
STATIA TERMINALS NETHERLANDS
STATIA TERMINALS CANADA, INC. ANTILLES OTHER
INTERNATIONAL N.V. (WHICH INCLUDES STATIA TERMINALS THAN STATIA UNITED
(UNCONSOLIDATED) CANADIAN ENTITIES) N.V. TERMINALS N.V. STATES
----------------- ----------------- ---------------- --------------- -------
<S> <C> <C> <C> <C> <C>
Net cash provided by (used in) operating
activities (14,353) (101) 13,877 3,884 935
-------- -------- -------- -------- --------
Cash flows from investing activities: --
Purchase of property and equipment -- (379) (1,759) (1) (167)
Proceeds from sale of fixed assets -- -- -- -- 6
Equity investment 8,639 -- -- 1,972 11
-------- -------- -------- -------- --------
Net cash provided by (used in)
investing activities 8,639 (379) (1,759) 1,971 (150)
-------- -------- -------- -------- --------
Cash flows from financing activities:
Dividends paid (1,350) -- (5,864) (5,864) --
-------- -------- -------- -------- --------
Net cash provided by (used in)
financing activities (1,350) -- (5,864) (5,864) --
-------- -------- -------- -------- --------
Increase (decrease) in cash and cash
equivalents (7,064) (480) 6,254 (9) 785
Cash and cash equivalents, beginning
balance 7,065 854 1,304 41 --
-------- -------- -------- -------- --------
Cash and cash equivalents, ending balance $ 1 $ 374 7,558 $ 32 785
======== ======== ======== ======== ========
Supplemental disclosure of cash flow
information:
Cash paid for income taxes $ -- $ 40 $ 140 $ -- $ 19
Cash paid for interest $ -- $ 1,539 $ 5,864 $ -- $ --
RECLASSIFICATIONS
AND CONSOLIDATED
ELIMINATIONS TOTAL
----------------- ------------
<S> <C> <C>
Net cash provided by (used in) operating
activities (1,109) 3,133
-------- --------
Cash flows from investing activities:
Purchase of property and equipment 3 (2,303)
Proceeds from sale of fixed assets -- 6
Equity investment (10,622) --
-------- --------
Net cash provided by (used in)
investing activities (10,619) (2,297)
-------- --------
Cash flows from financing activities:
Dividends paid 11,728 (1,350)
-------- --------
Net cash provided by (used in)
financing activities 11,728 (1,350)
-------- --------
Increase (decrease) in cash and cash
equivalents -- (514)
Cash and cash equivalents, beginning
balance -- 9,264
-------- --------
Cash and cash equivalents, ending balance $ -- $ 8,750
======== ========
Supplemental disclosure of cash flow
information:
Cash paid for income taxes $ -- $ 199
Cash paid for interest $ -- $ 7,403
</TABLE>
Page 12
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
For purposes of the discussion below, reference is made to the
unaudited Consolidated Financial Statements and Notes thereto of Statia
Terminals International N.V. and its Subsidiaries as of June 30, 1997 and the
periods ended June 30, 1997 and 1996 included herein. Reference should also be
made to the Company's Annual Report on Form 10-K as of and for the year ended
December 31, 1996 including the consolidated financial statements of the
Company, Statia Canada and Statia Terminals N.V. ("STNV").
RESULTS OF OPERATIONS
Total revenues for the quarter ending June 30, 1997 were $33.1 million
compared to $38.4 million for the same period in 1996, a decrease of $5.3
million, or 13.8%. Comparative mid-year revenues were down $11.0 million, or
14.3%. The revenue decreases are primarily due to a fall in product sales
(consisting of bunker and other bulk oil sales) at the Company's St. Eustatius
facility partially offset by an increase in product sales at the Point Tupper
facility. Terminaling services revenue (consisting of storage, throughput,
docking charges, response fees and other terminal charges) declined at St.
Eustatius, but showed improvement at Point Tupper for 1997 compared to 1996.
Terminaling services typically produce higher gross margins than product sales.
Gross profit, operating income and net income (loss) for the periods
ended June 30, 1996 and 1997 are not comparable due to the effects of purchase
accounting applied as a result of the CHPII Acquisition. See Note 2 to the
Consolidated Financial Statements of Statia Terminals International N.V. on Page
4 herein for further discussion. Depreciation, amortization and other operating
expenses, which are components of gross profit, changed because of the
revaluation of various assets to their fair values on November 27, 1996. In
addition, since the Company can no longer effectively pool costs with affiliated
companies, certain expenses related to insurance increased during the second
quarter and first half of 1997 compared to the same periods a year ago. However,
during 1997 the Company instituted certain cost reduction programs which lowered
the number of persons employed and reduced certain marine equipment costs.
Changes in the components of the Company's debt and equity accounts resulted in
changes to cost of services and products sold, interest expense and preferred
dividends.
Page 13
<PAGE>
<TABLE>
<CAPTION>
REVENUES AND OPERATING INCOME (LOSS) BY LOCATION
(DOLLARS IN THOUSANDS)
QUARTER ENDED JUNE 30, YEAR TO DATE JUNE 30,
---------------------- ---------------------
1996 1997 1996 1997
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
REVENUES
Netherlands Antilles and the Caribbean
Terminaling services $ 9,583 $ 7,145 $ 20,181 $ 16,893
Bunker and bulk product sales 26,097 22,276 50,227 41,875
-------- -------- -------- --------
35,680 29,421 70,408 58,768
-------- -------- -------- --------
Canada
Terminaling services 1,897 3,577 4,032 5,791
Bunker and bulk product sales 79 1,065 1,203 1,572
-------- -------- -------- --------
1,976 4,642 5,235 7,363
-------- -------- -------- --------
United States
Terminaling services 822 755 1,391 1,585
Corporate services 1,405 1,395 2,741 2,671
-------- -------- -------- --------
2,227 2,150 4,132 4,256
-------- -------- -------- --------
Eliminations (1,487) (3,066) (2,926) (4,530)
-------- -------- -------- --------
Total revenues $ 38,396 $ 33,147 $ 76,849 $ 65,857
======== ======== ======== ========
OPERATING INCOME (LOSS)
Netherlands Antilles and the Caribbean $ 2,882 $ 2,598 $ 6,230 $ 5,864
Canada (326) 484 (748) 237
United States (302) (359) (511) (747)
-------- -------- -------- --------
Total operating income $ 2,254 $ 2,723 $ 4,971 $ 5,354
======== ======== ======== ========
</TABLE>
At St. Eustatius, comparisons of the second quarters of 1996 and 1997
show revenues from terminaling services decreased $2.4 Million, or 25.3%. The
overall percentage of capacity leased was 85% for 1996 versus 75% for 1997.
These decreases are primarily due to petroleum market conditions adverse to the
Company. Substantially all of the facility's clean product tankage was leased
during the second quarter of 1996 while only a small portion of such tankage was
leased during the same period in 1997. The percentage of capacity leased and
lease rates for this facility's crude and fuel oil storage tanks were
essentially unchanged when comparing second quarters. Total throughput fell from
16.7 Million barrels for the second quarter of 1996 to 15.1 Million barrels for
the second quarter of 1997 due to reduced throughput of crude oil partially
offset by higher throughput of fuel oil. The decreases in storage leases for
clean products and reduced throughput led to fewer vessel calls and lower
revenues from dock charges and spill response fees.
Caribbean bunker fuel and other bulk oil sales fell $3.8 Million or
14.6% when comparing the second quarters of 1996 and 1997. The decrease is due
primarily to reduced bunker fuel deliveries partially resulting from the general
perception that petroleum market prices would continue to fall or at least
remain stable during the second quarter of 1997. Management believes that many
vessel owners and charterers opted to purchase smaller quantities or defer
purchases during the period of falling bunker fuel prices. Secondly, bunker fuel
prices were generally cheaper in Europe, the Mediterranean, and the Middle East
compared to the Americas partially due to excess supply. In addition, the
Company made fewer purchases and sales of bulk oil during the second quarter of
1997 versus the same period in 1996 due to fewer profitable opportunities to
make such sales.
At Point Tupper, the percentage of tank capacity leased for the second
quarter of 1997 was 65%, up from 55% last year due to the signing of additional
spot storage contracts during the second quarter. Total revenues
Page 14
<PAGE>
increased by $2.7 million for the second quarter of 1997, or 134.9% versus the
same period last year. Terminaling services revenues rose 88.6% due primarily to
additional storage contracts, increases in throughput and vessel traffic.
Revenues from product sales increased by $1.0 million over the same prior year
period due primarily to the availability of bunker fuel and increased vessel
traffic.
<TABLE>
<CAPTION>
CAPACITY, CAPACITY LEASE, THROUGHPUT AND VESSEL CALLS BY LOCATION
(Capacity and throughput in thousands of barrels)
QUARTER ENDED JUNE 30, YEAR TO DATE JUNE 30,
---------------------- ---------------------
1996 1997 1996 1997
------ ------- ------- ------
<S> <C> <C> <C> <C>
Netherlands Antilles and
the Caribbean
Total capacity 11,334 11,334 11,334 11,334
Capacity leased 85% 75% 87% 78%
Throughput 16,733 15,103 36,838 33,236
Vessel calls 236 210 486 413
Canada
Total capacity 7,404 7,404 7,404 7,404
Capacity leased 55% 65% 55% 60%
Throughput 5,530 11,959 9,936 18,666
Vessel calls 11 29 25 45
Texas
Total capacity 1,649 1,649 1,649 1,649
Capacity leased 30% 20% 29% 34%
Throughput 600 250 1,149 583
Vessel calls 18 15 42 41
All Locations
Total capacity 20,387 20,387 20,387 20,387
Capacity leased 69% 67% 71% 68%
Throughput 22,863 27,312 47,923 52,485
Vessel calls 265 254 553 499
</TABLE>
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 1996, the Company had cash and cash equivalents of $9.3
million which decreased $0.5 million to $8.8 million at June 30, 1997. The
decrease resulted from using cash for capital expenditures of $2.3 million and
dividends of $1.4 million less cash generated by operations of $3.1 million.
During the first half of 1997, the Company's interest expense amounting
to $8.0 million consisted of interest on the 11-3/4% First Mortgage Notes due
2003 and certain bank charges. An interest payment related to the Notes of $7.4
million was paid during the second quarter. Subsequently interest was accrued
for expected payment during the fourth quarter of 1997.
Page 15
<PAGE>
As of June 30, 1997, the Company had not borrowed under its $17.5
million revolving credit facilities which bear interest at the prime rate plus
50 basis points (9.0% at June 30, 1997). These facilities are available for
working capital needs and letter of credit financing. The available borrowing
base under the facilities at the end of the second quarter was $6.9 million
($5.5 million for STNV and $1.4 million for Statia Canada).
During 1997, most capital expenditures were related to sustaining the
Company's existing operations in accordance with its maintenance programs. The
Company's capital expenditure budget for 1997 is $7.5 million and a portion of
planned spending is contingent upon the disposition of certain assets held for
sale and the addition of incremental terminaling business.
CAPITAL EXPENDITURES BY LOCATION
(Dollars in thousands)
QUARTER ENDED JUNE 30, YEAR TO DATE JUNE 30,
--------------------- ---------------------
1996 1997 1996 1997
------ ------- ------- ------
Netherlands Antilles and
the Caribbean $ 173 $1,030 $1,204 $1,757
Canada 464 265 662 379
United States 424 71 1,211 167
------ ------ ------ ------
$1,061 $1,366 $3,077 $2,303
====== ====== ====== ======
During the first six months of 1996, the predecessor company had term
and revolving loans guaranteed by its former parent at the London Interbank
Offer Rate (LIBOR) plus 35 or 50 basis points. In addition, the Company leased a
portion of its facilities from a third party financier under a twenty year
operating lease arrangement. Interest expense and lease payments (consisting
primarily of interest on the underlying debt obligation) for the first half of
1996 amounted to $2.3 million and $3.1 million, respectively.
During the first half of 1996, cash provided by its former parent was
used to repair damages caused by the 1995 hurricanes (causing an increase in
other receivables pending receipt of insurance proceeds), to pay dividends to
its former parent, to reduce bank debt and to purchase property and equipment.
ASSETS HELD FOR SALE
The Company's Brownsville, Texas facility and its emergency response
vessel, M/V MEGAN D. GAMBARELLA, are being held for sale. The following table
sets forth, for the periods indicated, consolidated income from operations with
adjustments to reflect operating income less income (loss) from the Brownsville
terminal adjusted for certain on-going administrative expenses and expenses
related to assets to be retained.
Page 16
<PAGE>
<TABLE>
<CAPTION>
OPERATING INCOME FROM ON-GOING OPERATIONS
(DOLLARS IN THOUSANDS)
FOR THE QUARTERS ENDED JUNE 30, FOR THE YEAR TO DATE JUNE 30,
------------------------------- -----------------------------
1996 1997 1996 1997
-------- ------- ------- --------
<S> <C> <C> <C> <C>
Consolidated income from operations $ 2,254 $ 2,723 $ 4,971 $ 5,354
Less: Operating income (loss) from
Statia Terminals Southwest, Inc. (484) (526) (644) (915)
Add: Estimated adjustment for assets to be
retained and on-going expenses (335) (306) (606) (597)
------- ------- ------- -------
Consolidated income from on-going operations $ 2,403 $ 2,943 $ 5,009 $ 5,672
======= ======= ======= =======
</TABLE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company periodically purchases refined oil products from its
customers and others for resale as bunker fuel, for small volume sales to
commercial interests and to maintain an inventory of blend stocks for its
customers. Petroleum inventories are held for short time periods generally not
exceeding ninety days. The Company does not presently have any derivative
positions to hedge its inventory of petroleum products. The following table
indicates the Company's aggregate carrying value of its petroleum products on
hand at June 30, 1997 at average cost net of any lower of cost or market
valuation provisions and the estimated fair value of such products.
ON BALANCE SHEET C0MMODITY POSITION
(Dollars in thousands)
AS OF JUNE 30, 1997
-------------------
CARRYING FAIR
AMOUNT VALUE
-------- ------
Petroleum Inventory
STNV $1,793 $1,679
Statia Canada 1,004 1,283
------ ------
$2,797 $2,962
====== ======
As substantially all of the Company's transactions are in U.S. dollars,
and as all of the Company's present debt obligations carry a fixed rate of
interest (except for the undrawn revolving credit facilities which vary with
changes in the lender's prime lending rate), management believes the Company's
exposures to foreign currency exchange rate fluctuation and interest rate
fluctuation are minimal.
Page 17
<PAGE>
PART II.
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
Reference is made to Item 3. Legal Proceedings in the Company's Annual
Report on Form 10-K for complete discussion. There have been no material
developments in the Company's legal proceedings since December 31, 1996.
ITEM 2. CHANGES IN SECURITIES.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not Applicable.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits.
27.1 Financial Data Schedule for Statia Terminals International N.V.
(for Electronic filing only)
27.2 Financial Data Schedule for Statia Terminals Canada, Incorporated.
(for Electronic filing only)
(b) Reports on Form 8-K.
None.
Page 18
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrants have duly caused this Report to be signed on their behalf by the
undersigned thereunto duly authorized.
STATIA TERMINALS INTERNATIONAL N.V.
(Registrant)
Date: August 14, 1997
By: /s/ JAMES F. BRENNER
-------------------------
James F. Brenner
Vice President - Finance
(As Authorized Officer)
STATIA TERMINALS CANADA, INCORPORATED
(Registrant)
Date: August 14, 1997
By: /s/ JAMES F. BRENNER
-------------------------
James F. Brenner
Vice President and Treasurer
(As Authorized Officer)
Page S-1
<PAGE>
EXHIBIT INDEX
EXHIBIT PAGE
- ------- ----
27.1 Financial Data Schedule for Statia Terminals International N.V.
(for Electronic filing only)
27.2 Financial Data Schedule for Statia Terminals Canada, Incorporated
(for Electronic filing only)
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001029101
<NAME> STATIA TERMINALS INTERNATIONAL N.V.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> DEC-31-1996
<PERIOD-END> JUN-30-1997
<CASH> 8,750
<SECURITIES> 0
<RECEIVABLES> 9,293
<ALLOWANCES> (771)
<INVENTORY> 2,797
<CURRENT-ASSETS> 41,025
<PP&E> 206,396
<DEPRECIATION> (5,835)
<TOTAL-ASSETS> 247,705
<CURRENT-LIABILITIES> 18,503
<BONDS> 135,000
0
0
<COMMON> 6
<OTHER-SE> 98,494
<TOTAL-LIABILITY-AND-EQUITY> 247,705
<SALES> 40,683
<TOTAL-REVENUES> 65,857
<CGS> 52,214
<TOTAL-COSTS> 52,214
<OTHER-EXPENSES> 8,289
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,974
<INCOME-PRETAX> (2,620)
<INCOME-TAX> 233
<INCOME-CONTINUING> (2,853)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,853)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001029102
<NAME> STATIA TERMINALS CANADA, INCORPORATED
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> DEC-31-1996
<PERIOD-END> JUN-30-1997
<CASH> 374
<SECURITIES> 0
<RECEIVABLES> 2,456
<ALLOWANCES> (62)
<INVENTORY> 1,004
<CURRENT-ASSETS> 3,858
<PP&E> 29,576
<DEPRECIATION> (1,036)
<TOTAL-ASSETS> 33,670
<CURRENT-LIABILITIES> 5,167
<BONDS> 28,060
0
0
<COMMON> 0
<OTHER-SE> 2,266
<TOTAL-LIABILITY-AND-EQUITY> 33,670
<SALES> 1,572
<TOTAL-REVENUES> 7,363
<CGS> 5,138
<TOTAL-COSTS> 5,138
<OTHER-EXPENSES> 1,989
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,658
<INCOME-PRETAX> (1,422)
<INCOME-TAX> 39
<INCOME-CONTINUING> (1,461)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,461)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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