Refined product terminaling and pipeline companies facilitate the movement of refined products to consumers around the country. Consumption of refined products in the United States exceeds domestic production, which necessitates the importing of refined products from other countries. Moreover, a substantial majority of the petroleum product refining that occurs in the United States is concentrated in the Gulf Coast region, which necessitates the transportation of domestic production to other areas, such as the East Coast, Midwest and West Coast regions of the country. Terminaling and pipeline companies receive, store, blend, treat and distribute refined products, both domestic and imported, as they are transported from refineries to retailers and end-users.

Refineries in the Gulf Coast region refine crude oil into various "light oils" and "heavy oils." Light oils include gasolines and distillates, such as diesel fuels, heating oils and jet fuels. Heavy oils include residual fuel oils and asphalt. These products have various characteristics, such as sulfur content, octane level, vapor pressure, and chemical characteristics. Refined products of a specific grade, such as unleaded gasoline, are substantially identical in composition from one refinery to another and are referred to as being "fungible." Refined products initially are stored at the refineries' own storage facilities. The refineries then schedule for delivery some of their product output to satisfy their own retail delivery obligations and sell the remainder of their product output to independent distribution and marketing companies for resale.

The Company’s Florida assets include seven refined product terminals. At its Florida terminals, the Company handles refined products and crude oil on behalf of, and provide integrated terminaling services to companies engaged in the distribution and marketing of refined products and crude oil, and the United States government. All of the Company’s Florida terminals receive refined products and crude oil from waterborne vessels on behalf of the customers. The principal products that the Company handles at its Florida terminals are light refined products such as gasolines, distillates (including heating oils), and jet fuels; heavy refined products such as residual fuel oils and asphalt; and crude oil. The Company’s Port Everglades terminals include the North and the South terminals. The Company’s Port Everglades (North) marine terminal has 24 active tanks with an aggregate storage capacity of approximately 1,600,000 barrels and operates another two tanks with an aggregate storage capacity of approximately 500,000 barrels. The Company’s Port Everglades (South) marine terminal has 10 active tanks with an aggregate storage capacity of approximately 370,000 barrels. The Company’s Jacksonville, Florida terminal has 10 active tanks with an aggregate storage capacity of approximately 280,000 barrels, has six idle tanks with an aggregate storage capacity of approximately 110,000 barrels and is equipped with a truck rack. The Company’s Cape Canaveral, Florida terminal has 16 active tanks with an aggregate storage capacity of approximately 730,000 barrels, has access to two ship berths for receiving refined products and is equipped with a truck rack. The Company’s Port Manatee, Florida terminal has nine active tanks with an aggregate storage capacity of approximately 1,150,000 barrels, has seven idle tanks with an aggregate storage capacity of approximately 380,000 barrels and is equipped with a truck rack. The Company’s Fisher Island, Florida marine terminal has 12 active tanks with an aggregate storage capacity of approximately 670,000 barrels. The Company’s Tampa, Florida marine terminal has six active tanks with an aggregate storage capacity of approximately 420,000 barrels, one idle tank with aggregate storage capacity of 80,000 barrels and is equipped with a truck rack.

In Southwest Missouri and Northwest Arkansas the Company owns and operates the Razorback Pipeline and terminals in Rogers, Arkansas, at the terminus of the pipeline, and Mt. Vernon, Missouri, at the origin of the pipeline. The Company’s Razorback Pipeline is a 67 mile, 8-inch diameter interstate common carrier pipeline that transports light oil refined product from Mt. Vernon, Missouri, where it is interconnected with a pipeline system. The pipeline has a capacity of approximately 30,000 barrels per day.

The Company’s Mt. Vernon, Missouri terminal is the origin of the Razorback Pipeline. The Company’s Rogers, Arkansas terminal is located at the terminus of the Razorback Pipeline. The Mt. Vernon terminal has five active tanks with an aggregate storage capacity of approximately 220,000 barrels of storage, and the Rogers terminal has four active tanks with an aggregate storage capacity of approximately 180,000 barrels of storage. Each terminal is equipped with a truck rack.

The net operating margins for the six months ended December 31, 2003, were approximately $10.1 million, compared to approximately $8.9 million for the six months ended December 31, 2004.

Terminal throughput and additive injection fees, net were approximately $5.1 million and $5.4 million for the six months ended December 31, 2003 and 2004, respectively.

Terminaling storage fees were approximately $8.9 million and $9.0 million for the six months ended December 31, 2003 and 2004, respectively.

For the six months ended December 31, 2003 and 2004, the direct operating costs and expenses were approximately $6.7 million and $7.7 million, respectively.