DAKOTA PLAINS HOLDINGS INC 
By WAYZATA, Minn., March 14, 2014 /PRNewswire/ -- Dakota Plains Holdings, Inc. ("Dakota Plains" and "DAKP"), (OTCQB: DAKP) today announced financial results for the three and twelve months ended December 31, 2013.
Full Year 2013 Operational Summary
-- The Company repositioned itself from a passive holding company to a
company providing management oversight of the construction and the
operations of the Pioneer Terminal, a 192 acre site with two 8,300 foot
loop tracks each capable of 120 car unit trains, 180,000 barrels of
crude oil storage, a high speed loading facility that can accommodate 10
rail cars simultaneously, and transfer stations to receive crude oil
from local gathering pipelines and trucks. Nameplate capacity has
increased from 30,000 bpd to 80,000 bpd as a result.
-- Transloading joint venture volumes increased approximately 13% compared
to 2012 with 8.6 million barrels transloaded in 2013, while construction
of the Pioneer Terminal expansion was underway.
-- Marketing joint venture volumes increased approximately 22% compared to
2012 with 9.4 million barrels sold in 2013.
-- Trucking joint venture volumes, which commenced in the fourth quarter of
2012, were 5.6 million barrels in 2013 and the number of trucks
increased from 8 to 27.
-- The Company executed a new agreement with UNIMIN Corporation ("UNIMIN")
to construct a 750,000 ton per year frac sand automated terminal, which
remains on schedule for completion in May 2014. The facility, whose
construction is being funded entirely by UNIMIN, will comprise 8,000
tons of sand storage and four new ladder tracks, with Dakota Plains
providing management oversight of the joint venture operations.
Full Year 2013 Financial Summary
-- The Company completed a $15.0 million equity offering, reduced its
senior notes from $26.6 million to $7.7 million, and ended the year with
positive working capital.
-- The transloading joint venture experienced a 23% increase in net income
compared to 2012 primarily as a result of the 13% increase in barrels
transloaded.
-- The marketing joint venture recorded a 72% reduction in net income
compared to 2012 primarily due to a significant narrowing of the Brent
to WTI price spread from March through October 2013.
-- The trucking joint venture recorded a modest income of $130,000 in 2013.
-- Net loss was $(1.7) million compared to a net loss of $(2.0) million in
2012.
-- EBITDA was $2.4 million compared to $11.8 million in 2012, primarily due
to a collapsed Brent to WTI pricing spread, Pioneer Terminal expansion,
and costs associated with the transition to managing operations.
-- The Company began consolidating reporting of the transloading joint
venture at the end of the fourth quarter of 2013, which increases total
assets to approximately $87 million and increases stockholders' equity
from $37 million to over $62 million when compared to the equity
accounting method applied previously.
Craig M. McKenzie, Chairman and Chief Executive Officer of Dakota Plains, said: "Last year was pivotal for Dakota Plains: we successfully completed the construction of the Pioneer Terminal expansion, transforming our operations in New Town, North Dakota; reduced corporate debt by $19 million; launched our inbound business with a major frac sand supplier; and expanded our organization to provide management oversight of all transloading operations. We accomplished these operational successes amidst a narrow Brent-WTI spread that prevailed over much of the year and negatively impacted returns from our marketing business."
McKenzie added: "For 2014 we are focused on increasing throughput rates at Pioneer to achieve our forecast average rate of 45,000 barrels per day and are considering further growth initiatives to leverage the Pioneer asset. We remain committed to improving the predictability and profitability of our marketing business."
Fourth Quarter 2013 Financial Results
The Company reported net income of $337,000 for the three months ended December 31, 2013, compared to net income of $10.3 million for the three months ended December 31, 2012. The net income for the fourth quarter of 2012 was primarily the result of a gain related to the November 2012 debt restructuring. Income from the Company's indirect ownership interest in both the transloading and marketing joint ventures were relatively flat for the three months ended December 31, 2013, compared to the three months ended December 31, 2012. General and administrative expenses were $2.5 million for the three months ended December 31, 2013, compared to $0.8 million for the three months ended December 31, 2012. General and administrative expenses were higher due to the non-cash expenses related to share issuances to employees and the board of directors, the additional expenses related to employees hired in 2013, and an increase in professional fees.
Income from the Company's investment in the transloading joint venture was $0.9 million for the three months ended December 31, 2013, compared to $0.9 million for the three months ended December 31, 2012. The total volume transloaded increased to 2.3 million barrels of crude oil compared to 2.1 million barrels of crude oil for the three months ended December 31, 2012.
Income from the Company's indirect investment in the marketing joint venture was $1.4 million for the three months ended December 31, 2013, compared to $1.4 million for the three months ended December 31, 2012. The total volume sold for the three months ended December 31, 2013, increased to 2.4 million barrels of crude oil compared to 2.0 million barrels of crude oil for the three months ended December 31, 2012. The increase in barrels sold was offset by a narrow spread between Brent and WTI that continued into the fourth quarter. Income from the Company's indirect investment in the marketing joint venture during the month of December 2013 was $2.7 million or net income of $3.34 per barrel.
The Company's indirect investment in the trucking joint venture resulted in a loss of $82,000 for the three months ended December 31, 2013. The trucking joint venture commenced operations in September 2012 and income for the three months ended December 31, 2012, was not recognized. Generally Accepted Accounting Principles ("GAAP") prohibited the Company from reporting income unless the Company provided financial support to the trucking joint venture, which was not the case. The trucking joint venture hauled 1.7 million barrels of crude oil for the three months ended December 31, 2013, compared to 378,000 barrels of crude oil for the three months ended December 31, 2012. The loss reflects the financing of 27 trucks and 55 drivers employed.
The Company recognized rental income of $78,000 for the three months ended December 31, 2013, compared to $57,000 for the three months ended December 31, 2012. The increase is a result of the Company having secured additional acreage at the end of 2012 and charging it back to the transloading joint venture.
Adjusted EBITDA for the three months ended December 31, 2013, was $97,000 compared to $1.8 million for the three months ended December 31, 2012. The difference was primarily driven by the increase in general and administrative expenses related to share issuances to employees and the board of directors, the additional expenses related to employees hired in 2013, and an increase in professional fees.
Full Year 2013 Financial Results
Net loss for the full year ended December 31, 2013, was $(1.7) million, or $(0.04) per diluted share compared to a net loss of $(2.0) million, or $(0.05) per diluted share for the full year ended December 31, 2012. The net loss for the full year ended December 31, 2013 was driven primarily by the 72% reduction in income from the Company's indirect ownership interest in the marketing joint venture, as a result of a lower per barrel margin due to the significant narrowing of the Brent to WTI price spread experienced from early March through October and increased legal and insurance expenses. In addition, general and administrative expenses were higher due to the recognition of non-cash expenses related to share issuances to employees and the board of directors, additional expenses related to employees hired in 2013, and an increase in professional fees. The 2012 net loss was mainly driven by the expense related to an embedded derivative. The charge was partially offset by the $14.7 million reported as a gain on extinguishment of debt and by higher income from the Company's indirect ownership interest in its marketing joint venture.
The Company recognized rental income of $349,000 for the full year ended December 31, 2013 compared to $266,000 for the full year ended December 31, 2012. The increased rental income is a result of the Company having secured additional acreage at the end of 2012 and charging it back to the transloading joint venture.
Income from the Company's investment in the transloading joint venture was $4.3 million for the year ended December 31, 2013 compared to $3.5 million for the year ended December 31, 2012, a 23% increase. Volume for the year ended December 31, 2013, was 8.6 million barrels of crude oil transloaded compared to 7.6 million barrels for the year ended December 31, 2012, a 13% increase.
Income from the Company's indirect investment in the marketing joint venture was $3.0 million for the full year ended December 31, 2013, compared to $10.4 million for the full year ended December 31, 2012, a 72% decrease. The marketing joint venture experienced a 22% increase in volume sold (9.4 million barrels of crude oil) during the year ended December 31, 2013, compared to volume sold (7.7 million barrels of crude oil) during the year ended December 31, 2012. The increase in volume sold was offset by lower per barrel margins as a result of significant contraction in the price spread between Brent and WTI from March through October, in addition to increased legal and insurance expenses.
Income from the Company's indirect investment in the trucking joint venture was $130,000 for the full year ended December 31, 2013. The trucking joint venture hauled 5.7 million barrels of crude oil and increased its trucking fleet to 27 trucks. The trucking joint venture continues to haul crude oil for the marketing joint venture as well as for third parties. The trucking joint venture commenced operations in September 2012, had eight trucks by year-end, and had hauled 407,000 barrels of crude oil for the year.
Adjusted EBITDA for the full year ended December 31, 2013, was $2.4 million compared to $11.8 million in 2012. The decrease in Adjusted EBITDA was primarily due to the decrease in income from the Company's indirect investment in the marketing joint venture as well as the increase in general and administrative expenses.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measure. A reconciliation of this measure to its most directly comparable GAAP measure is included in the accompanying financial tables found later in this release. Management believes the use of this non-GAAP financial measure provides useful information to investors to gain an overall understanding of current financial performance. Specifically, management believes the non-GAAP results included herein provide useful information to both management and investors by excluding certain expenses and gains and losses on the extinguishment of debt that management believes are not indicative of Dakota Plains' core operating results. In addition, this non-GAAP financial measure is used by management for budgeting and forecasting as well as subsequently measuring Dakota Plains' performance, and management believes it is providing investors with a financial measure that most closely aligns to its internal measurement processes.
About Dakota Plains Holdings, Inc.
Dakota Plains Holdings, Inc. is an integrated midstream energy company, which competes through its 50/50 joint ventures to provide customers with crude oil off take services that include marketing, transloading and trucking of crude oil and related products. Direct and indirect assets include a proprietary trucking fleet, over 1000 railroad tank cars, and the Pioneer Terminal transloading facility centrally located in Mountrail County, North Dakota, for Bakken and Three Forks related Energy & Production activity. For more information please visit the corporate website at: www.dakotaplains.com.
Cautionary Note Regarding Forward Looking Statements
This announcement contains forward-looking statements that reflect the current views of Dakota Plains, including, but not limited to, statements regarding our future growth and plans for our business and operations. We do not undertake to update our forward-looking statements. These statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of lack of diversification, dependency upon strategic relationships, dependency on a limited number of major customers, competition for the loading, marketing and transporting of crude oil and related products, difficulty in obtaining additional capital that will be needed to implement business plans, difficulties in attracting and retaining talented personnel, risks associated with building and operating a transloading facility, changes in commodity prices and the demand for crude oil and natural gas, competition from other energy sources, inability to obtain necessary facilities, difficulty in obtaining crude oil to transport, increases in our operating expenses, an economic downturn or change in government policy that negatively impacts demand for our services, penalties we may incur, costs imposed by environmental laws and regulations, inability to obtain or maintain necessary licenses, challenges to our properties, technological unavailability or obsolescence, and future acts of terrorism or war, as well as the threat of war and other factors described from time to time in the company's reports filed with the U.S. Securities and Exchange Commission.
DAKOTA PLAINS HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2013 AND 2012
ASSETS
December 31,
------------
2013 2012
---- ----
CURRENT ASSETS
Cash and Cash
Equivalents $13,011,608 $2,340,083
Income Tax
Receivable 1,120,057 -
Other Current
Assets 542,523 30,632
Due from Related
Party 2,840,292 81,175
Other Receivables 68,896 -
Deferred Tax Asset 3,728,000 1,414,000
Total Current Assets 21,311,376 3,865,890
---------- ---------
PROPERTY AND EQUIPMENT
Land 3,166,849 3,166,849
Site Development 5,498,501 2,329,660
Terminal 19,813,452 -
Machinery 12,702,655 -
Construction in
Progress 7,551,187 -
Other Property and
Equipment 6,747,349 45,292
--------- ------
Total Property and
Equipment 55,479,993 5,541,801
Less -Accumulated
Depreciation 1,810,259 424,833
---------
Total Property and
Equipment, Net 53,669,734 5,116,968
PREFERRED DIVIDEND RECEIVABLE 252,057 819,178
INVESTMENT IN DPTS MARKETING, LLC 11,458,836 21,905,797
INVESTMENT IN DAKOTA PETROLEUM TRANSPORT
SOLUTIONS, LLC - 5,331,599
INVESTMENT IN DAKOTA PLAINS SERVICES, LLC 70,399 -
FINANCE COSTS, NET 123,280 184,225
DEFERRED TAX ASSET 153,000 2,441,000
OTHER ASSETS 15,902 -
------ ---
Total Assets $87,054,584 $39,664,657
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $8,286,489 $239,674
Accrued Expenses 1,547,645 232,905
Accounts Payable -
Related Parties 722 -
Income Taxes
Payable - 1,028,000
Deferred Rental
Income - 20,679
--- ------
Total Current Liabilities 9,834,856 1,521,258
LONG-TERM LIABILITIES
Promissory Notes,
Net of Debt
Discount 7,076,332 25,614,683
Promissory Note,
Pioneer Project 7,500,000 -
Other Noncurrent
Liabilities 16,917 -
Deferred Rental
Income - 165,434
--- -------
Total Long-Term
Liabilities 14,593,249 25,780,117
---------- ----------
Total Liabilities 24,428,105 27,301,375
---------- ----------
STOCKHOLDERS' EQUITY
Preferred Stock -Par Value $.001; 10,000,000 Shares
Authorized;
None Issued or
Outstanding - -
Common Stock, Par Value $.001; 100,000,000 Shares
Authorized; 54,206,380
and 41,839,433 Issued
and Outstanding,
Respectively 54,206 41,839
Additional Paid-In
Capital 43,836,032 17,432,904
Accumulated Deficit (6,836,825) (5,111,461)
---------- ----------
Total Equity Dakota
Plains Holdings,
Inc. 37,053,413 12,363,282
Non-controlling
Interest in
Subsidiary 25,573,066 -
Total Stockholders' Equity 62,626,479 12,363,282
---------- ----------
Total Liabilities and
Stockholders' Equity $87,054,584 $39,664,657
=========== ===========
DAKOTA PLAINS HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
Year Ended December 31,
-----------------------
2013 2012 2011
---- ---- ----
REVENUES
Rental Income -
Related Party $349,372 $266,483 $314,581
-------- -------- --------
OPERATING EXPENSES
General and
Administrative
Expenses 8,449,125 2,901,907 3,897,066
Depreciation and
Amortization 179,546 165,313 159,275
------- ------- -------
8,628,671 3,067,220 4,056,341
Total Operating
Expenses
LOSS FROM OPERATIONS (8,279,299) (2,800,737) (3,741,760)
---------- ---------- ----------
OTHER INCOME (EXPENSE)
Income from
Investment in
Dakota
Petroleum
Transport
Solutions, LLC 4,312,394 3,511,999 4,236,779
Income from
Investment in
DPTS Marketing
LLC 2,961,671 10,410,596 2,314,279
Income from
Investment in
Dakota Plains
Services, LLC 130,305 - -
Interest Expense
(Net of
Interest
Income) (3,630,950) (29,211,978) (3,371,812)
Gain (Loss) on
Extinguishment
of Debt 1,726,515 14,708,909 (4,552,500)
Other Expense - - (2,777)
5,499,935 (580,474) (1,376,031)
Total Other Income
(Expense)
LOSS BEFORE TAXES (2,779,364) (3,381,211) (5,117,791)
INCOME TAX BENEFIT (1,054,000) (1,380,541) (2,007,000)
---------- ---------- ----------
NET LOSS $(1,725,364) $(2,000,670) $(3,110,791)
=========== =========== ===========
Net Loss Per Common Share - Basic
and Diluted $(0.04) $(0.05) $(0.09)
====== ====== ======
Weighted Average Shares
Outstanding -Basic and Diluted 42,338,999 39,792,973 35,214,940
========== ========== ==========
DAKOTA PLAINS HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
Retained
Additional Earnings Non-controlling Total
Common Stock Paid-In (Accumulated Interest In Stockholders'
------------
Shares Amount Capital Deficit) Subsidiary Equity
------ ------ ------- ------- ---------- ------
Balance - December 31, 2010 30,592,744 $30,592 $2,238,763 $610,013 $ - $2,879,368
Sale of Common Shares
at $2.125 Per Share 1,500,000 1,500 3,186,000 - - 3,187,500
Sale of Common Shares
at $4.00 Per Share 500,000 500 1,999,500 - - 2,000,000
Issuance of Common
Shares Related to
Consulting Agreements 2,280,000 2,280 2,161,470 - - 2,163,750
Issuance of Common
Share Related to
Administrative
Services Agreement 2,000 2 4,248 - - 4,250
Issuance of Restricted
Common Shares 600,000 600 (600) - - -
Issuance of Common
Shares as a Stock
Dividend 1,441,774 1,442 (1,442) - - -
Issuance of Common
Shares to Board of
Directors 40,000 40 84,960 - - 85,000
Issuance of Common
Shares for Finance
Costs 7,500 8 29,992 - - 30,000
Cash Dividend Paid - - (1,331,619) (610,013) - (1,941,632)
Share-Based
Compensation - - 425,756 - - 425,756
Issuance of Common
Shares Pursuant to
Exercise of Warrants 50,000 50 14,200 - - 14,250
Warrants Issue Included
in Debt Discount - - 1,346,816 - - 1,346,816
Net Loss - - - (3,110,791) - (3,110,791)
Balance - December 31, 2011 37,014,018 37,014 10,158,044 (3,110,791) - 7,084,267
Acquisition of MCT
Holding Corporation 640,200 640 (640) - - -
Issuance of Common
Shares Pursuant to
Exercise of Warrants 2,386,578 2,387 (2,387) - - -
Share-Based
Compensation - - 477,604 - - 477,604
Issuance of Restricted
Common Shares 38,437 38 (38) - - -
Issuance of Common
Shares Pursuant to
Debt Restructure 1,757,075 1,757 6,130,435 - - 6,132,192
Issuance of Common
Shares to Board of
Directors 3,125 3 24,997 - - 25,000
Warrants Issued
Included in Debt
Discount - - 644,889 - - 644,889
Net Loss - - - (2,000,670) - (2,000,670)
Balance - December 31, 2012 41,839,433 41,839 17,432,904 (5,111,461) - 12,363,282
Share- Based
Compensation - - 1,469,442 - - 1,469,442
Sale of Common Shares
at $2.15 per share 7,000,000 7,000 15,043,000 - - 15,050,000
Issuance of Common
Shares Pursuant to
Debt Restructure 4,660,535 4,660 10,015,483 - - 10,020,143
Issuance of Restricted
Common Shares 794,063 794 (794) - - -
Issuance of Shares to
Executive 62,500 63 234,937 - - 235,000
Issuance of Warrants
Pursuant to Consulting
Agreements - - 208,663 - - 208,663
Issuance of Common
Shares to Board of
Directors 308,108 308 1,139,692 - - 1,140,000
Common Shares
Surrendered (458,259) (458) (567,600) - - (568,058)
Cost of Capital Raise - - (1,139,695) - - (1,139,695)
Creation of Non-
controlling Interest
in Subsidiary - - - - 25,573,066 25,573,066
Net Loss - - - (1,725,364) - (1,725,364)
Balance - December 31, 2013 54,206,380 $54,206 $43,836,032 $(6,836,825) $25,573,066 $62,626,479
========== ======= =========== =========== =========== ===========
DAKOTA PLAINS HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
Year Ended December 31,
-----------------------
2013 2012 2011
---- ---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $(1,725,364) $(2,000,670) $(3,110,791)
Adjustments to Reconcile Net Loss to Net Cash
Used in Operating Activities
Depreciation and Amortization 179,546 165,313 159,275
Amortization of Debt Discount 349,632 58,272 1,346,816
Amortization of Finance Costs 70,728 10,837 -
(Gain) Loss on Extinguishment of Debt (1,726,515) (14,708,909) 4,552,500
Loss on Disposal of Property and Equipment - - 2,776
Loss on Derivative Liability - 27,311,802 1,167,500
Deferred Income Taxes (26,000) (2,412,000) (2,010,000)
Share-Based Consulting Fees 299,288 - 2,168,000
Increase (Decrease) in Deferred Rental Income (24,793) 40,271 (100,546)
Income from Investment in Dakota Petroleum Transport
Solutions, LLC (4,312,394) (3,511,999) (4,236,779)
Income from Investment in DPTS Marketing LLC (2,961,671) (10,410,596) (2,314,279)
Income for Investment in Dakota Plains Services, LLC (130,305) - -
Non-cash Rental Income (12,169) (42,783) (80,986)
Amortization of Deferred Rent (4,083) - -
Share-Based Compensation 2,753,817 502,604 510,756
Changes in Working Capital and Other Items, Net of
Consolidation of VIE:
Increase in Income Taxes Receivable (1,120,057) - -
Increase in Other Current Assets (55,986) (13,876) (16,756)
Decrease in Due from Related Party 46,018 (81,175) -
Increase (Decrease) in Accounts Payable 69,318 207,058 (6,184)
Increase (Decrease) in Income Taxes Payable (1,028,000) 1,028,000 (220,000)
Increase (Decrease) in Accrued Expenses 1,307,740 152,244 80,661
Increase (Decrease) in Deferred Rental Income (8,062) (104,485) 12,310
Increase in Other Assets (15,500) - -
(8,074,812) (3,810,092) (2,095,727)
Net Cash Used In Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of Property and Equipment (159,621) (2,116,490) (788,126)
Cash Received from DPTS Marketing LLC 12,910,000 - -
Preferred Dividends Received from DPTS Marketing LLC 1,065,753 - -
Cash Received from Dakota Plains Services, LLC 59,906 - -
Cash Paid for Investment in Dakota Petroleum Transport Solutions, LLC (17,500,000) - -
Cash Paid for Investment in DPTS Marketing LLC - - (10,000,100)
Cash Received from Dakota Petroleum Transport Solutions, LLC 1,757,896 1,113,463 1,952,210
Cash Received from Consolidation of Dakota Petroleum Transport
Solutions, LLC 6,921,264 - -
5,055,198 (1,003,027) (8,836,016)
Net Cash Provided By (Used In) Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Finance Costs Paid (9,783) (195,062) -
Common Shares Surrendered (568,058) - -
Proceeds from Issuance of Common Stock - Net of Issuance Costs 13,910,305 - 5,187,500
Proceeds from Exercise of Warrants - - 14,250
Cash Paid for Debt Extinguishment Costs (218,641) (45,401) (150,000)
Cash Dividend Paid - - (1,941,632)
Repayment of Promissory Notes (6,922,684) (500,000) -
Proceeds from Promissory Notes - 6,140,000 -
Proceeds from Promissory Note, Pioneer Project 7,500,000 - -
Proceeds from Senior Promissory Notes - - 3,500,000
Proceeds from Junior Promissory Notes - - 5,500,000
13,691,139 5,399,537 12,110,118
Net Cash Provided By Financing Activities
NET INCREASE IN CASH AND CASH EQUIVALENTS 10,671,525 586,418 1,178,375
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 2,340,083 1,753,665 575,290
--------- --------- -------
CASH AND CASH EQUIVALENTS - END OF PERIOD $13,011,608 $2,340,083 $1,753,665
=========== ========== ==========
Supplemental Disclosure of Cash Flow Information
Cash Paid During the Period for Interest $3,085,750 $1,831,353 $858,082
========== ========== ========
Cash Paid During the Period for Income Taxes $1,073,308 $3,459 $211,220
========== ====== ========
Non-Cash Financing and Investing Activities:
Purchase of Property and Equipment Paid Subsequent to Period
End $10,215 $30,800 $30,800
Fair Value of Warrants Issued for Debt Discount $ - $1,048,889 $1,346,816
Payment of Debt Extinguishment Costs through issuance of
Common Stock $ - $ - $30,000
Satisfaction of Derivative Liability with Common Stock $ - $6,132,192 $ -
Loss on Extinguishment of Debt Related to Derivative
Liability $ - $ - $4,372,500
Promissory Notes Issued to Satisfy Derivative Liability $ - $11,965,300 $ -
Preferred Dividend Receivable $498,632 $501,370 $317,808
Satisfaction of Promissory Notes through issuance of Common
Stock $10,020,143 $ - $ -
Dakota Plains Holdings, Inc.
Reconciliation of Adjusted EBITDA
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012 2011
---- ---- ---- ---- ----
Net Income
(Loss) $337,304 $10,342,009 $(1,725,364) $(2,000,670) $(3,110,791)
Add Back:
Income Tax
Provision
(Benefit) 228,000 5,985,000 (1,054,000) (1,380,541) (2,007,000)
Depreciation
and
Amortization 47,623 41,378 179,546 165,313 159,275
Share Based
Compensation -
Employees and
Directors 323,152 128,644 2,753,817 502,604 510,756
Share Based
Compensation -
Consultants 18,574 - 299,288 - 2,168,000
Interest
Expense 868,775 (7,851) 3,630,950 29,211,978 3,371,812
Gain (Loss) on
Extinguishment
of Debt (1,726,515) (14,708,909) (1,726,515) (14,708,909) 4,552,500
Adjusted EBITDA $96,913 $1,780,271 $2,357,722 $11,789,775 $5,644,552
======= ========== ========== =========== ==========
CONTACT: Tim Brady, CFO, tbrady@dakotaplains.com, Phone: 952.473.9950, www.dakotaplains.com; Investor and Media Contact, Dan Gagnier, Sard Verbinnen, DGagnier@sardverb.com, Phone: 212.415.8972, www.sardverb.com
SOURCE Dakota Plains Holdings, Inc.
