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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 3, 2004
GENESIS ENERGY, L.P.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 1-12295 76-0513049
(State or other jurisdiction of (Commission (I.R.S. Employer Identification No.)
incorporation or organization) File Number)
500 DALLAS, SUITE 2500, HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
(713) 860-2500
(Registrant's telephone number, including area code)
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Copy of Genesis Energy, L.P.'s press release dated
May 3, 2004.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
The following information is furnished pursuant to Item 12, "Results of
Operations and Financial Condition."
Genesis Energy, L.P. ("GELP") issued a press release on May 3, 2004
regarding its financial results for the quarter ended March 31, 2004, and held a
webcast conference call discussing those results on May 4, 2004. A copy of this
earnings press release is furnished as Exhibit 99.1 to this report. Genesis
Energy, L.P. does not intend for this Item 12 or Exhibit 99.1 to be incorporated
by reference into filings under the Securities Exchange Act of 1934.
The webcast conference call will be available for replay on Genesis
Energy, L.P.'s website at www.genesiscrudeoil.com. A summary of this conference
call is archived on our website.
USE OF NON-GAAP FINANCIAL MEASURES
Our earnings press release includes the non-generally accepted accounting
principle ("non-GAAP") financial measures of Segment Margin and Available Cash.
The press release provides reconciliations of these non-GAAP financial measures
to their most directly comparable financial measure calculation and presented in
accordance with accounting principles generally accepted in the United States of
America ("GAAP"). Our non-GAAP measures should not be considered as alternatives
to GAAP measures such as net income, operating income or cash flow from
operating activities or any other GAAP measure of liquidity or financial
performance.
Segment Margin. Our profitability depends to a significant extent upon our
ability to maximize segment margin. This measure forms the basis or our internal
financial reporting and is used by senior management in deciding how to allocate
capital resources among business segments. We believe that investors benefit
from having access to the same financial measures that our management uses in
evaluating segment results. The GAAP measure most directly comparable to total
segment margin is operating income.
We define segment margin as revenues less costs of sales and operating
expenses. This measure is exclusive of depreciation and amortization, general
and administrative expenses, any gains or losses on asset disposals. It also
excludes the effects of any adjustments for the effects of derivative
accounting, minority interests and the cumulative effect of any accounting
changes.
Available Cash. The non-GAAP financial measure of Available Cash is
calculated in accordance with generally accepted accounting principles (GAAP),
with the exception of maintenance capital expenditures as used in our
calculation of Available Cash. Maintenance capital expenditures are capital
expenditures (as defined by GAAP) to replace or enhance partially or fully
depreciated assets in order to sustain the existing operating capacity or
efficiency of our assets and extend their useful lives.
We believe that investors benefit from having access to the same financial
measures being utilized by management. Available Cash is a liquidity measure
used by our management to compare cash flows generated by the Partnership to the
cash distribution we pay to our limited partners and the general partner. This
is an important financial measure to our public unitholders since it is an
indicator of our ability to provide a cash return on their investment.
Specifically, this financial measure tells investors whether or not the
Partnership is generating cash flows at a level that can support a quarterly
cash distribution to our partners. Lastly, Available Cash (also referred to as
distributable cash flow) is a quantitative standard used throughout the
investment community with respect to publicly-traded partnerships.
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Several adjustments to net income are required to calculate Available
Cash. These adjustments include: (1) the addition of non-cash expenses such as
depreciation and amortization expense; (2) miscellaneous non-cash adjustments
such as the addition of decreases or the subtraction of increases in the value
of financial instruments; and (3) the subtraction of maintenance capital
expenditures. As part of our press release information, we have provided a
reconciliation of this non-GAAP financial measure to Cash Flow from Operating
Activities, the most comparable financial measure calculated and presented in
accordance with GAAP.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GENESIS ENERGY, L.P.
(A Delaware Limited Partnership)
By: GENESIS ENERGY, Inc., as
General Partner
Date: May 4, 2004 By: /s/ ROSS A. BENAVIDES
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Ross A. Benavides
Chief Financial Officer
Index to Exhibit
99.1 Genesis Energy, L.P.'s press release dated May 3, 2004.