PBF Energy 2013 Annual Report Download - page 56

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following review of our results of operations and financial condition should be read in conjunction with
Items 1, 1A, and 2, “Business, Risk Factors, and Properties,” Item 6, “Selected Financial Data,” and Item 8,
“Financial Statements and Supplementary Data,” respectively, included in this Annual Report on Form 10-K.
CAUTIONARY STATEMENT FOR THE PURPOSE OF SAFE HARBOR PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Annual Report on Form 10-K contains certain “forward-looking statements”, as defined in the Private
Securities Litigation Reform Act of 1995, that involve risk and uncertainties. You can identify forward-looking
statements because they contain words such as “believes,” “expects,” “may,” “should,” “seeks,” “approximately,”
“intends,” “plans,” “estimates,” or “anticipates” or similar expressions that relate to our strategy, plans or intentions.
All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows,
growth rates and financial results or to our expectations regarding future industry trends are forward-looking
statements. In addition, we, through our senior management, from time to time make forward-looking public
statements concerning our expected future operations and performance and other developments. These forward-
looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual
results may differ materially from those that we expected. We derive many of our forward-looking statements from
our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our
assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of
course, it is impossible for us to anticipate all factors that could affect our actual results.
Important factors that could cause actual results to differ materially from our expectations, which we refer
to as “cautionary statements,” are disclosed under “Item 1A. Risk Factors,” and "Item 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations" and elsewhere in this Annual Report on Form 10-
K. All forward-looking information in this Annual Report on Form 10-K and subsequent written and oral forward-
looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by
the cautionary statements. Some of the factors that we believe could affect our results include:
• supply, demand, prices and other market conditions for our products;
• the effects of competition in our markets;
• changes in currency exchange rates, interest rates and capital costs;
• adverse developments in our relationship with both our key employees and unionized employees;
• our ability to operate our businesses efficiently, manage capital expenditures and costs (including general
and administrative expenses) and generate earnings and cash flow;
• our substantial indebtedness;
• our supply and inventory intermediation arrangements expose us to counterparty credit and performance risk;
• termination of our Inventory Intermediation Agreements with J. Aron could have a material adverse effect
on our liquidity, as we would be required to finance our refined products inventory covered by the agreements.
Additionally, we are obligated to repurchase from J. Aron all volumes of products located at the Paulsboro
and Delaware City refineries’ storage tanks upon termination of these agreements;
• restrictive covenants in our indebtedness that may adversely affect our operational flexibility;
• payments to the holders of PBF LLC Series A Units and PBF LLC Series B Units under our tax receivable
agreement for certain tax benefits we may claim;
• our assumptions regarding payments arising under the tax receivable agreement and other arrangements
relating to our organizational structure are subject to change due to various factors, including, among other
factors, the timing of exchanges of PBF LLC Series A Units for shares of our Class A common stock as