Revenue during the quarter grew 13 percent to $46.34 million from $41.01 million in the previous year period. Gross margin for the quarter contracted 16 basis points over the previous year period to 24.37 percent. Total expenses were 85.85 percent of quarterly revenues, down from 87.78 percent for the same period last year. This has led to an improvement of 193 basis points in operating margin to 14.15 percent.

Operating income for the quarter was $6.56 million, compared with $5.01 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $15.21 million compared with $13.59 million in the prior year period. At the same time, adjusted EBITDA margin contracted 31 basis points in the quarter to 32.83 percent from 33.13 percent in the last year period.

Comments from BKEP CEO Mark Hurley: “Our first quarter results clearly reflect the strategic investments made in the past two years in fee-based, terminalling-focused assets as represented by significant quarter over quarter increases in net income, operating income, Adjusted EBITDA and distributable cash flow. Operating income, Adjusted EBITDA and distributable cash flow for the first quarter ended March 31, 2017, increased 31%, 12% and 20%, respectively, when compared with results for the first quarter of 2016. Our asphalt terminalling services segment reported strong quarter-over-quarter performance posting a 27% increase in operating margin, before depreciation and amortization. These solid increases result from the acquisition of the nine Ergon asphalt terminals in October of 2016 and the acquisition of two additional asphalt terminals in the first quarter of 2016.”