Business Context and Reporting Period
This Form 6-K filing by KNOT Offshore Partners LP, dated September 5, 2013, addresses a restatement of the combined carve-out financial statements for the Predecessor entity for the year ended December 31, 2012. The filing follows an earnings release from August 26, 2013, and corrects accounting errors related to the Partnership's initial public offering (IPO).
Key Financial Metrics
The filing focuses on the adjustment of historical financial data rather than current period operational results. Key figures regarding the restatement include:
- Additional Expenses: Approximately $3.439 million in general and administrative expenses were recognized for the year ended December 31, 2012.
- Net Income Adjustment: Net income for the year ended December 31, 2012, was reduced from a previously reported $4.184 million to a restated $0.745 million.
- Cash Flow Impact: The filing states the restatement has no impact on cash available for distribution to unitholders, as the expenses were funded from IPO proceeds.
The filing text does not provide clear values for current period revenue, operating margins, debt levels, or liquidity metrics beyond the historical restatement details.
Material Changes Versus Prior Period
The primary material change is the correction of accounting treatment for IPO-related expenses. Previously, these expenses were deferred and reflected as a reduction in owner's equity on the balance sheet. The restatement reclassifies these costs as general and administrative expenses on the statement of operations for the 2012 period, significantly reducing reported net income for that year.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the disclosure of the accounting error. The document notes that the restatement was determined following discussions with auditors to ensure conformity with U.S. generally accepted accounting principles (GAAP). The attached Exhibit 99.1 contains the audited restated financial statements.
Investor Verification Checklist
- Verify the impact of the $3.439 million expense reclassification on historical earnings per unit calculations.
- Confirm that the restatement does not affect the actual cash flow or distribution capacity of the Partnership.
- Review the attached Exhibit 99.1 for the full audited combined carve-out financial statements for 2011 and 2012.
- Ensure understanding that this filing corrects Predecessor data and does not report new operational results for September 2013.