PBF Energy 2013 Annual Report Download - page 75

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68
• does not reflect certain other non-cash income and expenses; and
• excludes income taxes that may represent a reduction in available cash.
The following tables reconcile net (loss) income as reflected in our results of operations to EBITDA and Adjusted
EBITDA for the periods presented:
Year Ended December 31,
2013 2012 2011
Reconciliation of net (loss) income to EBITDA:
Net income (1) $ 214,085 $ 804,037 $ 242,671
Add:Depreciation and amortization expense 111,479 92,238 53,743
Add: Interest expense, net 93,784 108,629 65,120
Add: Income tax expense (1) 16,681 1,275 —
EBITDA $ 436,029 $ 1,006,179 $ 361,534
Reconciliation of EBITDA to Adjusted EBITDA:
EBITDA $ 436,029 $ 1,006,179 $ 361,534
Stock based compensation 3,753 2,954 2,516
Change in tax receivable agreement liability 8,540 — —
Non-cash change in fair value of catalyst lease obligations (4,691) 3,724 (7,316)
Non-cash change in fair value of contingent consideration — 2,768 5,215
Non-cash change in fair value of inventory repurchase
obligations (12,985) 9,271 (1,396)
Non-cash deferral of gross profit on
finished product sales (31,329) 19,177 (6,771)
Adjusted EBITDA $ 399,317 $ 1,044,073 $ 353,782
——————————
(1) Net income for PBF Holding for the years ended December 31, 2013, 2012 and 2011 was $238,876, $805,312
and $242,671 respectively, which excludes $16,681 and $1,275 and $0 of income tax expense of PBF Energy,
respectively, and $8,540 of expense associated with the change in the tax receivable agreement liability for the
year ended December 31, 2013 and includes $423 of interest expense related to the intercompany notes payable
between PBF Holding and PBF Energy for the year ended December 31, 2013.
Liquidity and Capital Resources
Overview
Our primary source of liquidity is our cash flows from operations and borrowing availability under our
credit facilities, as more fully described below. We believe that our cash flows from operations and available capital
resources will be sufficient to meet our capital expenditure, working capital, dividend payments and debt service
requirements for the next twelve months. However, our ability to generate sufficient cash flow from operations
depends, in part, on oil market pricing and general economic, political and other factors beyond our control. We
believe we could, during periods of economic downturn, access the capital markets and/or other available financial
resources or reduce our capital and discretionary expenditure plans to strengthen our financial position.