Welcome!

.NET Authors: ITinvolve Blog, Srinivasan Sundara Rajan, Sematext Blog, Aditya Banerjee, Jayaram Krishnaswamy

News Feed Item

Northern Tier Energy Announces Record Third Quarter Adjusted EBITDA and Declares Initial Cash Distribution

- 3Q12 operating income of $199.4 million

RIDGEFIELD, Conn., Nov. 12, 2012 /PRNewswire/ -- Northern Tier Energy LP and its subsidiaries (NYSE: NTI) ("Northern Tier Energy") today reported consolidated earnings for the third quarter of 2012.  In addition, Northern Tier Energy announced a prorated cash distribution to unit holders of $1.48 per unit.

Third Quarter Results

Northern Tier Energy reported operating income of $199.4 million for the third quarter of 2012, an increase of $33.7 million compared to the third quarter of 2011.  This increase in operating income is primarily due to improved results in the Refining segment which were driven by higher refined product margins per barrel and increased throughput and sales volumes compared to the prior year period.  Adjusted EBITDA for the third quarter of 2012 was $249.5 million, an increase of $70.0 million compared to $179.5 million for the third quarter of 2011 also driven by the favorable operating results in the Refining segment.

Northern Tier Energy reported net income of $61.1 million for the third quarter of 2012 compared to $2.2 million for the third quarter of 2011.  The $58.9 million improvement from the third quarter of 2011 is primarily attributable to a $72.7 million increase in operating income in the Refining segment and an improvement of $38.1 million related to derivative activities, partially offset by a $35.1 million unfavorable impact in contingent consideration loss, an $8.0 million non-cash charge for deferred income taxes and a $4.6 million non-cash interest charge related to the write-off of deferred financing costs. 

Quarterly Distribution

The Board of Directors of Northern Tier Energy GP LLC, the general partner of Northern Tier Energy LP, declared a prorated quarterly distribution of $1.48 per unit payable in cash on November 29, 2012 to common unit holders of record at the close of business on November 21, 2012.  Prorated cash available for distribution totaled $136.1 million for the third quarter 2012.  As noted in Northern Tier Energy's IPO prospectus, the cash available for its first distribution includes cash for the period from the closing date of the IPO (July 31, 2012) through September 30, 2012.

In connection with Northern Tier Energy's recently completed debt refinancing described under the heading "Subsequent Events" below, all payment in kind (PIK) common units will convert to common units and there will be no PIK common units issued for the third quarter distribution or any prospective distribution.

Operating Segment Highlights

Refining Segment

The Refining segment's operating income was $246.7 million for the third quarter of 2012 compared to $174.0 million for the third quarter of 2011.  Refining gross product margins were $36.69 per barrel of throughput for the third quarter of 2012 compared to $28.54 per barrel for the third quarter of 2011.  This increase is primarily due to favorable crude oil price differentials versus the benchmark WTI crude oil prices in the 2012 third quarter.

In addition to higher product margins per barrel, throughput and sales volumes increased compared to the prior year quarter.  Total throughput was 87,476 barrels per day for the third quarter of 2012 compared to 84,485 barrels per day for the prior year quarter.  Sales volumes increased to 94,105 barrels per day for the third quarter of 2012 from 90,349 barrels per day for the third quarter of 2011.  The higher refinery throughput in the third quarter of 2012 compared to the same prior year period is primarily attributable to record productivity at the St. Paul Park refinery. 

Retail Segment

Retail operating income was $1.2 million in the third quarter of 2012 compared to $4.9 million in the third quarter of 2011.  Fuel margins were $0.12 per gallon for the third quarter of 2012 compared to $0.22 per gallon for the third quarter of 2011.  This reduction in fuel margin per gallon relates to competitive pricing actions that occurred during the middle of the third quarter of 2012 in response to reduced sales volumes across the local market.  Fuel gallons sold at company-operated retail stores declined by 6.2% from the prior year period.  This sales volume decline is generally correlated to the broader market decline for retail fuel sales in the period.  Despite the reduction in fuel gallons sold, the Retail segment experienced higher non-fuel revenues driven primarily by merchandise revenues at company-operated stores.

Liquidity and Capital Spending

Northern Tier Energy's primary sources of liquidity are cash generated from operating activities and its asset backed revolving credit facility (the "ABL Facility").  As of September 30, 2012, the Company's cash on hand and availability under the ABL Facility amounted to $491 million as compared to $232 million as of December 31, 2011 and $148 million as of the closing date of the Marathon Acquisition on December 1, 2010.  The September 30, 2012 cash on hand balance of $323.5 million includes the net use of cash related to the completion of Northern Tier Energy LP's IPO.

Cash provided by operating activities for the third quarter of 2012 was $80.0 million compared to $61.1 million for the third quarter of 2011.  The cash provided in the 2012 period relates primarily to the strength of the Refining segment's operating results partially offset by $132.0 million of payments made out of the IPO proceeds to settle deferred derivative obligations and to settle the contingent consideration arrangements.  Capital expenditures for the third quarter of 2012 were $6.3 million

Subsequent Events

On October 17, 2012, Northern Tier Energy LLC, a wholly-owned subsidiary of Northern Tier Energy LP, announced the commencement of a cash tender offer for any and all of the $261 million outstanding principal amount of its existing senior secured notes. In conjunction with the tender offer, Northern Tier Energy LLC solicited consents to eliminate most of the covenants and certain events of default applicable to the existing senior secured notes.  At the completion of the early tender period on November 1, 2012, $253.1 million of the outstanding principal amount had been tendered and related consents received.   

As of November 8, 2012, Northern Tier Energy LLC amended the indenture governing the existing notes in accordance with the approved consents.  As a result of the amendment, the PIK common units of Northern Tier Energy LP were converted into Northern Tier Energy LP common units with the same rights and limitations as the existing common units, effective November 9, 2012.  The supplemental indenture also amended covenants to ease the restrictions of cash distributions to common unit holders. As a result of the conversion of the PIK common units, there will be no distribution on such converted common units in the form of additional PIK common units, and as a result, there will be no dilution to the per unit cash distributions of common unit holders. 

On November 8, 2012, Northern Tier Energy completed a private offering of $275 million in aggregate principal amount of 7.125% senior secured notes due 2020.  The net proceeds of this offering were used to fund a portion of the tender offer for its existing senior secured notes due 2017. 

Conference Call Information

Northern Tier Energy will hold a conference call to discuss its third quarter 2012 results on Tuesday, November 13, 2012 at 11:00 AM Eastern Standard Time.  The call will be webcast live over the internet from Northern Tier Energy's website at www.ntenergy.com.  The call can also be heard by dialing (866) 783-2142, passcode: 64550770The audio replay will be available on the website through November 26, 2012.

About Northern Tier Energy

Northern Tier Energy LP (NYSE: NTI) is an independent downstream energy company with refining, retail and pipeline operations that serves the PADD II region of the United States.  Northern Tier Energy operates a 84,500 barrels per stream day refinery located in St. Paul Park, Minnesota.  Northern Tier Energy also operates 166 convenience stores and supports 68 franchised convenience stores, primarily in Minnesota and Wisconsin, under the SuperAmerica trademark, and owns a bakery and commissary under the SuperMom's brand.  Northern Tier Energy is headquartered in Ridgefield, Connecticut. 

Non-GAAP Measures

This earnings release includes non-GAAP measures including adjusted EBITDA and cash available for distribution.  Northern Tier Energy believes that these non-GAAP financial measures provide useful information about its operating performance.  However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives to comparable GAAP financial measures.  Northern Tier Energy's non-GAAP financial measures may also differ from similarly named measures used by other companies.  See the accompanying tables and footnotes in this release for additional information on the non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.

Forward-Looking Statements

This press release contains certain "forward-looking statements" which reflect Northern Tier Energy's views and assumptions on the date of this press release regarding future events. They involve known and unknown risks, uncertainties and other factors, many of which may be beyond its control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. All forward-looking statements speak only as of the date hereof.  Northern Tier Energy undertakes no obligation to update or revise publicly any such forward-looking statements. Northern Tier Energy cautions you not to place undue reliance on these forward-looking statements. Please refer to Northern Tier Energy's filings with the SEC for more detailed information regarding these risks, uncertainties and assumptions.

This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of Northern Tier Energy LP's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, Northern Tier Energy LP's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

NORTHERN TIER ENERGY LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, unaudited)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2012


2011


2012


2011









Revenue

$  1,263.5


$  1,159.5


$  3,417.8


$  3,192.0









Costs, expenses and other:








Cost of sales

929.2


890.2


2,594.0


2,578.2

Direct operating expenses

66.9


67.3


189.1


192.5

Turnaround and related expenses

2.1


-


17.1


22.5

Depreciation and amortization 

8.3


7.4


24.6


22.3

Selling, general and administrative 

22.0


24.4


67.1


63.3

Formation costs

-


1.7


1.0


6.1

Contingent consideration loss (income)

38.5


3.4


104.3


(37.6)

Other income, net

(2.9)


(0.6)


(6.2)


(2.4)

Operating income

199.4


165.7


426.8


347.1

Net losses on derivative activities

(115.0)


(153.1)


(269.2)


(580.9)

Interest expense, net

(15.6)


(10.4)


(36.7)


(30.6)

Income (loss) before income taxes

68.8


2.2


120.9


(264.4)









Income tax provision

(7.7)


-


(7.8)


-

Net income (loss)

$        61.1


$          2.2


$     113.1


$   (264.4)

 

NORTHERN TIER ENERGY LP

SELECTED OPERATING SEGMENT DATA

(in millions, unaudited)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2012


2011


2012


2011









OPERATING INCOME:








Refining

$   246.7


$   174.0


$   560.3


$   326.7

Retail

1.2


4.9


5.2


7.2

Corporate and unallocated costs

(48.5)


(13.2)


(138.7)


13.2









TOTAL OPERATING INCOME

199.4


165.7


426.8


347.1

Net losses on derivative activities

(115.0)


(153.1)


(269.2)


(580.9)

Interest expense, net

(15.6)


(10.4)


(36.7)


(30.6)

Income tax provision

(7.7)


-


(7.8)


-









NET INCOME (LOSS)

$     61.1


$        2.2


$   113.1


$ (264.4)


NORTHERN TIER ENERGY LP

SELECTED BALANCE SHEET AND CASH FLOW DATA

(in millions, unaudited)







September 30,


December 31,



2012


2011












Cash and Cash Equivalents

$               323.5


$             123.5


Total Assets

$            1,177.4


$             998.8


Total Debt and Financing Obligations

$               268.5


$             301.9


Equity

$               537.9


$             312.2













Nine Months Ended,



September 30,



2012


2011







Net cash provided by operating activities

$               174.8


$             194.9


Net cash used in investing activities

(12.0)


(138.5)


Net cash provided by (used in) financing activities

37.2


(2.5)







Net increase in cash and cash equivalents

$               200.0


$               53.9



NORTHERN TIER ENERGY LP

ADJUSTED EBITDA RECONCILIATION

(in millions, unaudited)










Three Months Ended September 30, 2012


 Refining 


 Retail 


 Other 


 Total 

(in millions)








 Net income (loss) 

$   246.7


$       1.2


$ (186.8)


$     61.1

Adjustments:








Interest expense

-


-


15.6


15.6

Income tax provision

-


-


7.7


7.7

Depreciation and amortization

6.4


1.8


0.1


8.3

EBITDA subtotal

253.1


3.0


(163.4)


92.7

Minnesota Pipe Line proportionate EBITDA

0.7


-


-


0.7

Turnaround and related expenses

2.1


-


-


2.1

Equity-based compensation expense

-


-


0.5


0.5

Unrealized losses on derivative activities

-


-


70.3


70.3

Contingent consideration loss

-


-


38.5


38.5

Realized losses on derivative activities

-


-


44.7


44.7

 Adjusted EBITDA (a) 

$   255.9


$       3.0


$     (9.4)


$   249.5




Three Months Ended September 30, 2011


 Refining 


 Retail 


 Other 


 Total 

(in millions)








 Net income (loss)  

$   174.0


$       4.9


$ (176.7)


$       2.2

Adjustments:








Interest expense

-


-


10.4


10.4

Depreciation and amortization

5.4


2.0


-


7.4

EBITDA subtotal

179.4


6.9


(166.3)


20.0

Minnesota Pipe Line proportionate EBITDA

0.9


-


-


0.9

Equity-based compensation expense

-


-


0.4


0.4

Unrealized losses on derivative activities

-


-


40.6


40.6

Contingent consideration loss

-


-


3.4


3.4

Formation costs

-


-


1.7


1.7

Realized losses on derivative activities

-


-


112.5


112.5

 Adjusted EBITDA (a) 

$   180.3


$       6.9


$     (7.7)


$   179.5



NORTHERN TIER ENERGY LP

ADJUSTED EBITDA RECONCILIATION

(in millions, unaudited)










Nine Months Ended September 30, 2012


 Refining 


 Retail 


 Other 


 Total 

(in millions)








 Net income (loss) 

$   560.3


$       5.2


$ (452.4)


$   113.1

Adjustments:








Interest expense

-


-


36.7


36.7

Income tax provision

-


-


7.8


7.8

Depreciation and amortization

18.5


5.6


0.5


24.6

EBITDA subtotal

578.8


10.8


(407.4)


182.2

Minnesota Pipe Line proportionate EBITDA

2.1


-


-


2.1

Turnaround and related expenses

17.1


-


-


17.1

Equity-based compensation expense

-


-


1.4


1.4

Unrealized gains on derivative activities

-


-


(32.6)


(32.6)

Contingent consideration loss

-


-


104.3


104.3

Formation costs

-


-


1.0


1.0

Loss on early extinguishment of derivatives

-


-


136.8


136.8

Realized losses on derivative activities

-


-


165.0


165.0

 Adjusted EBITDA (a) 

$   598.0


$     10.8


$   (31.5)


$   577.3




Nine Months Ended September 30, 2011


 Refining 


 Retail 


 Other 


 Total 

(in millions)








 Net income (loss) 

$   326.7


$       7.2


$ (598.3)


$ (264.4)

Adjustments:








Interest expense

-


-


30.6


30.6

Depreciation and amortization

16.0


6.0


0.3


22.3

EBITDA subtotal

342.7


13.2


(567.4)


(211.5)

Minnesota Pipe Line proportionate EBITDA

2.7


-


-


2.7

Turnaround and related expenses

22.5


-


-


22.5

Equity-based compensation expense

-


-


1.1


1.1

Unrealized losses on derivative activities

-


-


334.5


334.5

Contingent consideration income

-


-


(37.6)


(37.6)

Formation costs

-


-


6.1


6.1

Realized losses on derivative activities

-


-


246.4


246.4

 Adjusted EBITDA (a) 

$   367.9


$     13.2


$   (16.9)


$   364.2

(a) Adjusted EBITDA is not a presentation made in accordance with GAAP and Northern Tier Energy's computation of Adjusted EBITDA may vary from others in its industry.  In addition, Adjusted EBITDA contains some, but not all, adjustments that are taken into account in the calculation of the components of various covenants in the agreements governing the Secured Notes, ABL Facility, earn-out, margin support agreement and management services agreement.  Adjusted EBITDA should not be considered as an alternative to operating income or net income (loss) as measures of operating performance.  In addition, Adjusted EBITDA is not presented as, and should not be considered, an alternative to cash flow from operations as a measure of liquidity.  Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes and depreciation and amortization, adjusted for EBITDA from the Minnesota Pipe Line operations, turnaround and related expenses, equity-based compensation expense, gains or losses from derivative activities, fair value adjustments for contingent consideration arrangements and costs related to Northern Tier Energy's formation. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as a substitute for analysis of the results as reported under GAAP. 

NORTHERN TIER ENERGY LP

CASH AVAILABLE FOR DISTRIBUTION RECONCILIATION

For the Three Months Ended September 30, 2012

(in millions, unaudited)



 Net income 

$          61.1

Adjustments:


Interest expense

15.6

Income tax provision

7.7

Depreciation and amortization

8.3

EBITDA subtotal

92.7

Minnesota Pipe Line proportionate EBITDA

0.7

Turnaround and related expenses

2.1

Equity-based compensation expense

0.5

Unrealized loses on derivative activities

70.3

Contingent consideration loss

38.5

Realized losses on derivative activities

44.7

 Adjusted EBITDA (a) 

249.5

Cash interest expense

(9.9)

Current tax provision

(0.1)

Minnesota Pipe Line proportionate EBITDA

(0.7)

Realized losses on derivative activities

(44.7)

Capital expenditures 

(6.3)

Reserve for turnaround and related expenses

(10.0)

Working capital impacts

19.9

 Cash available for distribution (b) 

197.7

 Adjustment for period prior to initial public offering 

(61.6)

 Cash available for distribution subsequent to initial public offering  

$       136.1

(b) Cash available for distribution is a non-GAAP performance measure that Northern Tier Energy believes is important to investors in evaluating its overall cash generation performance.  Cash available for distribution should not be considered as an alternative to operating income or net income (loss) as measures of operating performance.  In addition, cash available for distribution is not presented as, and should not be considered, an alternative to cash flow from operations as a measure of liquidity. Northern Tier Energy has reconciled cash available for distribution to adjusted EBITDA and in addition reconciled adjusted EBITDA to net income.  Cash available for distribution has limitations as an analytical tool and should not be considered in isolation, or as a substitute for analysis of the results as reported under GAAP.  Northern Tier Energy's calculation of cash available for distribution may differ from similar calculations of other companies in its industry, thereby limiting its usefulness as a comparative measure. Cash available for distribution for each quarter will be determined by the board of directors of Northern Tier Energy's general partner following the end of such quarter.

NORTHERN TIER ENERGY LP

OTHER NON-GAAP PERFORMANCE MEASURES 

(in millions, unaudited)


















Three Months Ended,


Nine Months Ended,


September 30,


September 30,


2012


2011


2012


2011









Refining revenue

$ 1,151.1


$ 1,034.0


$ 3,084.8


$ 2,857.7

Refining cost of sales

855.8


812.2


2,379.3


2,370.7

Refining gross product margin (c)

$    295.3


$    221.8


$    705.5


$    487.0


















Three Months Ended,


Nine Months Ended,


September 30,


September 30,


2012


2011


2012


2011









Retail gross margin:








Fuel margin

$         9.7


$      19.1


$      39.8


$      49.0

Merchandise margin

25.4


23.8


68.4


64.7

Other margin

3.9


4.6


10.1


13.1









Retail gross margin

39.0


47.5


118.3


126.8

Expenses:








 Direct operating expenses 

30.4


33.3


89.6


93.8

 Depreciation and amortization  

1.8


2.0


5.6


6.0

 Selling, general and administrative 

5.6


7.3


17.9


19.8









Retail segment operating income (d)

$         1.2


$         4.9


$         5.2


$         7.2

(c) Refining gross product margin per barrel is a financial measurement calculated by subtracting refining costs of sales from total refining revenues and dividing the difference by the total throughput or total refined products sold for the respective periods presented.  Refining gross product margin is a non-GAAP performance measure that Northern Tier Energy believes is important to investors in evaluating its refining segment performance as a general indication of the amount above its cost of products that it is able to sell refined products.  Each of the components used in these calculations (revenues and cost of sales) can be reconciled directly to Northern Tier Energy's statements of operations.  Northern Tier Energy's calculation of refining gross product margin may differ from similar calculations of other companies in its industry, thereby limiting its usefulness as a comparative measure.

(d) Retail fuel gross margin and retail merchandise gross margin are non-GAAP performance measures that Northern Tier Energy believes are important to investors in evaluating its retail performance.  Northern Tier Energy's calculation of retail fuel margin and retail merchandise margin may differ from similar calculations of other companies in its industry, thereby limiting their usefulness as comparative measures.

NORTHERN TIER ENERGY LP

SUPPLEMENTAL OPERATING DATA

(unaudited)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2012


2011


2012


2011









REFINING SEGMENT
















Key Operating Statistics








   Total refinery production (bpd)

88,413


85,564


82,330


81,173

   Total refinery throughput (bpd)

87,476


84,485


81,697


80,694

   Refined products sold (bpd)

94,105


90,349


86,960


85,170









   Per barrel of throughput:








      Refining gross margin

$36.69


$28.54


$31.52


$22.11

      Direct operating expenses

$4.54


$4.36


$4.45


$4.48

   Per barrel of refined products sold:








      Refining gross margin

$34.11


$26.69


$29.61


$20.95

      Direct operating expenses

$4.22


$4.08


$4.18


$4.24









Refinery product yields (bpd):








   Gasoline

41,623


41,611


39,578


40,238

   Distillate

28,466


25,755


26,464


23,851

   Asphalt

12,241


14,165


11,011


11,169

   Other

6,083


4,033


5,277


5,915

      Total

88,413


85,564


82,330


81,173

















RETAIL SEGMENT
















Company operated stores:








 Fuel gallons sold (in millions) 

80.1


85.4


231.6


245.8

 Fuel margin per gallon 

$0.12


$0.22


$0.17


$0.20

 Merchandise sales (in millions) 

$99.7


$92.3


$269.3


$253.9

 Merchandise margin % 

25.5%


25.7%


25.4%


25.5%

 Number of stores at period end 

166


166


166


166

Note: See "Management's Discussion and Analysis of Financial Condition and Results of Operations" included within Northern Tier Energy's quarterly report on Form 10-Q for further information on operating statistic definitions.

SOURCE Northern Tier Energy LP

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...