HispanicBusiness

Appendix A - Reconciliation of Non-GAAP Financial Measure
(In thousands of U.S. dollars)

Description of Non-GAAP Financial Measure - Operating Surplus

Operating Surplus represents net income adjusted for non-cash items such as depreciation and amortization expense and deferred revenue. In prior periods the Partnership designated a separate reserve in its calculation of Operating Surplus for "Replacement Capital Expenditures." The intent of this reserve is to invest, rather than distribute, an amount of cash flow each quarter so that the Partnership will be able to replace vessels in its fleet as those vessels reach the end of their useful lives. Based on current estimates of future vessel replacement costs, prior levels of Replacement Capital Expenditure reserves and investment returns from previous Replacement Capital Expenditure reserves, the Board of Directors has determined not to reserve additional Replacement Capital Expenditures for the third quarter. The Board of Directors will continue to review its Replacement Capital Expenditure requirements on a quarterly basis. Operating Surplus is a quantitative standard used in the publicly-traded partnership investment community to assist in evaluating a partnership's ability to make quarterly cash distributions. Operating Surplus is a non-GAAP financial measure and should not be considered as an alternative to net income or any other indicator of the Partnership's performance required by accounting principles generally accepted in the United States. The table below reconciles Operating Surplus to net income for the three-months period ended September 30, 2012.

Reconciliation of Non-GAAP Financial           For the three-month period Measure -                                               ended Operating Surplus                                 September 30, 2012Net income                                  $                         7,223Adjustments to reconcile net income to net cash provided by operating activitiesDepreciation and amortization                                        13,193Deferred revenue                                                      1,475                                            -------------------------------OPERATING SURPLUS PRIOR TO CLASS B PREFERRED UNITS DISTRIBUTION                                        21,891                                            -------------------------------Class B preferred units distribution                                 (3,325)                                            -------------------------------ADJUSTED OPERATING SURPLUS                                           18,566                                            -------------------------------Increase in recommended reserves                                     (2,108)                                            -------------------------------AVAILABLE CASH                              $                        16,458                                            -------------------------------