NEW ORLEANS--(BUSINESS WIRE)--Blackwater Midstream Corp. (OTCBB: BWMS) announces financial results for its fiscal year ended March 31, 2011.
- Total Revenues (storage and ancillary) for the fiscal year ended March 31, 2011 increased by 74% over the comparable 2010 fiscal year end period:
Fiscal Year Ended March 31, 2010 = $3,968,122
Fiscal Year Ended March 31, 2011 = $6,903,422
- Gross Profit for the fiscal year ended March 31, 2011 showed a 64% increase over the comparable 2010 fiscal year end period:
Fiscal Year Ended March 31, 2010 = $2,656,545
Fiscal Year Ended March 31, 2011 = $4,356,394
- Net Income for the fiscal year ended March 31, 2011 grew by more than $2.9 Million over the comparable 2010 fiscal year end period:
Fiscal Year Ended March 31, 2010 = $(1,904,524)
Fiscal Year Ended March 31, 2011 = $ 1,003,842
- Net Income, excluding non-cash events, for the fiscal year ended March 31, 2011 grew by more than $2 Million over the comparable 2010 fiscal year end period:
Fiscal Year Ended March 31, 2010 = $ 215,900
Fiscal Year Ended March 31, 2011 = $2,285,200
Leasable Barrel Utilization went from 78% as of March 31, 2010 - to more than 85% as of March 31, 2011. This 9% increase takes into account the additional capacity of the Brunswick, GA Terminal acquisition in July, 2010.
Michael Suder, CEO, attributed the Company’s steady and continued improvement in its quarterly and year end operational results to management’s focus on increasing storage utilization at its Westwego, LA and Brunswick, GA terminals; expanding the ancillary services offered to existing customers; continuous improvements in its overall operational efficiencies; and decreasing SG&A expenses.
Mr. Suder stated, “Even when considering the world’s economic turmoil, we are in an industry where demand for storage continues to outstrip supply, allowing for additional business opportunities. As an independent developer, operator, and third party provider of bulk liquid storage terminals, we take no commodity price risk and obtain favorable, long-term customer contracts.” Suder went on to say that, “Management’s focus is to continue to execute our business model by leveraging our management team’s expertise and abilities and by acquiring additional, strategically located, under-performing, storage terminals. A major element of our business model is to grow by acquisition; which is evidenced by the Company’s recent announcement of its letter of intent to acquire a storage terminal in Salisbury, MD. This acquisition will build asset value for our shareholders and increase our financial results.”
Blackwater Midstream Corp. is an independent operator of bulk liquid storage terminals including a storage terminal located within the Port of New Orleans in Westwego, LA and one located in Brunswick, GA. Both terminals have a combined capacity of more than one million barrels and are capable of storing a wide variety of liquid products. The sites offer modal access for product distribution via marine, rail, and truck. The company is a member of the International Liquid Terminals Association.
The information in this press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to prospective acquisitions or anticipated future results. Forward-looking statements relate to expectations or forecasts of future events. Blackwater Midstream Corp. does not assume the obligation to update any forward-looking statement. Many factors could cause actual results to differ materially from Blackwater Midstream Corp.’s forward-looking statements, including market forces, economic factors, the availability of capital and credit, current and future competition and other uncertainties.
For further details about these and other factors that may impact the forward-looking statements, see Blackwater Midstream Corp.’s Securities and Exchange Commission filings, including the “Risk Factors” in the Annual Report on Form 10-K. This discussion and analysis should be read in conjunction with our audited financial statements and notes included in our Annual Report on Form 10-K as of and for the year ended March 31, 2011. For more information, please reference our website at www.BlackwaterMidstream.com.
| BLACKWATER MIDSTREAM CORP. | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| Year | Year | |||||||||
| Ended | Ended | |||||||||
| March 31, 2011 | March 31, 2010 | |||||||||
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| Revenue | ||||||||||
| Storage | $ | 5,611,784 | $ | 3,720,679 | ||||||
| Other Services | 1,291,638 | 247,443 | ||||||||
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| Total Revenue | 6,903,422 | 3,968,122 | ||||||||
| Cost of revenue | ||||||||||
| Labor | (801,704 | ) | (496,903 | ) | ||||||
| General materials | (583,242 | ) | (86,096 | ) | ||||||
| Subcontractors | (164,151 | ) | (228,971 | ) | ||||||
| Depreciation | (518,265 | ) | (306,214 | ) | ||||||
| Other costs of revenue | (479,666 | ) | (193,393 | ) | ||||||
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| Total cost of revenue | (2,547,028 | ) | (1,311,577 | ) | ||||||
| GROSS PROFIT | 4,356,394 | 2,656,545 | ||||||||
| OTHER OPERATING EXPENSES: | ||||||||||
| Selling, general and administrative | 3,436,639 | 4,252,483 | ||||||||
| Impairment of cost method investment | - | 82,400 | ||||||||
| (Gain) loss on disposal of assets | (247,938 | ) | (255,188 | ) | ||||||
| Depreciation | 46,837 | 39,833 | ||||||||
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| Total other operating expenses | 3,235,538 | 4,119,528 | ||||||||
| Income (Loss) from operations | 1,120,856 | (1,462,983 | ) | |||||||
| Net interest expense | (907,895 | ) | (441,541 | ) | ||||||
| Gain on bargain purchase of assets | 100,000 | - | ||||||||
| Gain on change in fair market value of derivative liabilities | 503,141 | - | ||||||||
| Other Income | 187,740 | - | ||||||||
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| Net Income (Loss) | $ | 1,003,842 | $ | (1,904,524 | ) | |||||
| NET INCOME (LOSS) PER COMMON SHARE, | ||||||||||
| BASIC | $ | 0.02 | $ | (0.04 | ) | |||||
| DILUTED | $ | 0.01 | $ | (0.04 | ) | |||||
| Weighted average number of shares outstanding: | ||||||||||
| BASIC | 54,616,489 | 52,750,676 | ||||||||
| DILUTED | 65,817,436 | 52,750,676 | ||||||||
| The accompanying notes are an integral part of these audited consolidated financial statements. | ||||||||||