Earnings for the third quarter included a $1.2 million benefit related to the stock appreciation rights (SAR) plan, resulting predominately from a 20% decline in the common unit price from June 30 to September 30, 2007. Without this benefit, net income would have been $0.5 million, or $0.02 per unit, for the quarter.
For the third quarter of 2007, available cash before reserves was $7.3 million. Available cash before reserves is a non-GAAP measure that is defined and reconciled later in this press release to its most directly comparable GAAP financial measure, net cash provided by operating activities. Net cash provided by operating activities was $22.6 million for the third quarter of 2007.
Net income for the first nine months of 2007 was $1.9 million, or $0.11 per unit. Excluding the effects of the $3.1 million of expense for the SAR plan, net income would have been $5 million, or $0.28 per unit.
Net income was $7.7 million, or $0.55 per unit, for the first nine months of 2006. Net income for the 2006 nine-month period included expense for the company’s SAR plan totaling $0.9 million. For the first nine months of 2007, available cash before reserves was $15 million. Net cash provided by operating activities was $25.7 million for the nine months ended September 30, 2007.
Grant Sims, CEO of Genesis Energy, said: For the third quarter of 2007, we generated available cash before reserves, a non-GAAP measure, of $7.3 million. Although the economic effective date of the Davison transaction was April 1, 2007, our results do not include the results of the Davison operations prior to the closing date of July 25, 2007.
