HOUSTON, Aug. 5, 2015 /PRNewswire/ -- Sunoco LP
(NYSE: SUN) today announced financial and operating results for the
three months ended June 30, 2015 and
provided an update on recent developments.
Adjusted EBITDA(1) attributable to partners totaled
$55.5 million, compared with adjusted
EBITDA attributable to partners of $15.6
million in the second quarter of 2014. Adjusted EBITDA
attributable to partners excluding transaction related expenses
totaled $58.2 million.
Distributable cash flow attributable to partners, as
adjusted(1) was $39.3
million, compared to $13.7
million a year earlier, and distributable cash flow per
common unit was $0.9506. The
favorable year-over-year comparisons primarily reflect the
contributions from the dropdown acquisitions of a 31.58 percent
interest in the wholesale fuel distribution business of Sunoco, LLC
in April 2015 and the MACS
convenience stores in October 2014
from SUN's parent, Energy Transfer Partners, L.P. (NYSE: ETP),
along with the purchase of Aloha Petroleum in December 2014.
Revenue was $4.2 billion, up 205.7
percent compared to $1.4 billion in
second quarter of 2014. The increase was the result of the
contribution of wholesale fuel distribution sales from Aloha
Petroleum and SUN's interest in Sunoco, LLC on a consolidated
basis(2), merchandise and retail fuel sales from the
MACS and Aloha convenience stores, higher rental income, partly
offset by the impact of lower selling prices for motor fuel.
Total gross profit was $236.8
million, compared to $22.2
million in the second quarter of 2014. Key drivers of
the increase were the contribution from the previously mentioned
wholesale and retail businesses and an increase in the weighted
average margin per gallon of gasoline -- which is the result of
higher-margin retail fuel gallons being added to the overall sales
mix.
Net income attributable to partners was $34.9 million, or $0.87 per diluted unit, versus $9.6 million, or $0.43 per diluted unit, in the second quarter of
last year.
On a weighted average basis, excluding noncontrolling interest,
fuel margin for all gallons sold increased to 7.6 cents per gallon, compared to 3.7 cents per gallon a year ago. Sales of
higher margin retail gallons by MACS and Aloha -- along with a
change in the wholesale fuel customer mix related to the Sunoco,
LLC, MACS and Aloha acquisitions -- drove most of the margin
increase.
Excluding the noncontrolling interest, total wholesale gallons
sold in the second quarter were 967.9 million, compared with 461.8
million in the second quarter of last year, an increase of
109.6%. This includes gallons sold to affiliate-operated
convenience stores, consignment stores and third-party customers,
including independent dealers, fuel distributors and commercial
customers.
Motor fuel gallons sold to affiliates increased 39.2% from a
year ago to 408.1 million gallons during the second quarter of
2015, excluding the noncontrolling interest. Affiliate
customers included 679 Stripes® and Sac-N-Pac™
convenience stores operated by ETP as well as sales of motor fuel
to ETP subsidiaries for resale under consignment arrangements at
approximately 85 independently operated convenience stores.
Additionally, effective with the acquisition of Sunoco, LLC,
affiliates also included Sunoco retail fuel and convenience store
sites operated by a subsidiary of ETP, which contributed 86.8
million gallons in the quarter. Organic growth in sales through
Stripes sites from new builds and same store sales growth also
contributed to the increase. The Partnership realized a
3.3 cent per gallon gross profit on
these gallons on a weighted average basis.
Other wholesale gallons increased from a year ago by 232.1
percent to 559.8 million gallons related to the acquisitions of
31.58% of Sunoco, LLC, MACs and Aloha. Gross profit on these
gallons was 8.2 cents per gallon,
compared to 4.9 cents per gallon a
year earlier, driven by a change in customer mix related to the
acquisitions.
Retail gallons sold by MACS and Aloha locations during the
second quarter totaled 71.1 million gallons. Gross profit on
these gallons was $20.9 million, or
27.4 cents per gallon.
Merchandise sales from these locations totaled $57.0 million and contributed $14.8 million of gross profit. On a
same-store sales basis, the retail business achieved 1.3% growth in
fuel gallons and 7.8% on merchandise for the quarter. As of
June 30, SUN operated 155 retail
convenience stores and fuel outlets in Virginia, Hawaii, Tennessee, Maryland and Georgia.
On August 4, the Board of
Directors of SUN's general partner declared a distribution for the
second quarter of 2015 of $0.6934 per
unit, which corresponds to $2.7736
per unit on an annualized basis. This represents a 7.5
percent increase compared to the distribution for the first quarter
of 2015 and a 33.4 percent increase compared with the second
quarter of 2014. This is the Partnership's ninth consecutive
quarterly increase. The distribution will be paid on August 28 to unitholders of record on
August 18. SUN achieved a 1.2 times
distribution coverage ratio for the second quarter.
On July 31 the Partnership
completed the acquisition of Susser Holdings Corporation from an
affiliate of ETP in a transaction valued at approximately
$1.93 billion. SUN paid
$966.9 million in cash and issued to
ETP's subsidiaries approximately 21.98 million Class B SUN Units
valued at $966.9 million. This
drop down is expected to be accretive to SUN with respect to
distributable cash flow and accelerates SUN's exposure to the
fast-growing retail business with its strong backlog of organic
growth opportunities and EBITDA performance.
The Partnership expects to complete next week the acquisition of
28 Aziz Quick Stop convenience stores in South Texas for $41.6
million using amounts available on its revolving credit
facility. SUN plans to rebrand most of the stores to the
Stripes convenience store brand.
As previously reported, on April
1, the Partnership completed the acquisition of a 31.58
percent equity interest in Sunoco, LLC from an affiliate of ETP in
a transaction valued at approximately $816
million. A full quarter's contribution from the
Partnership's stake in Sunoco, LLC, is included in SUN's second
quarter results.
On April 1, SUN issued
$800 million of 6.375% Senior Notes
due 2023 through a private offering that raised net proceeds of
$786.5 million. The majority of
the proceeds were used to fund the purchase of the Partnership's
interest in Sunoco, LLC, and a small portion was used to repay
outstanding borrowings under its senior secured revolving credit
facility.
The Partnership issued $600
million of 5.5% senior notes due 2020 on July 20 through an upsized private offering that
raised net proceeds of $592.5
million. The proceeds were used to fund a portion of the
purchase of Susser Holdings Corporation ("Susser") from ETP.
Also in connection with the Susser transaction, the Partnership
issued 5.5 million new common units in a public offering at a price
of $40.10 per unit. The offering was
completed on July 21 and raised net
proceeds of $212.9 million. The
Partnership also granted to the underwriters a 30-day option to
purchase up to an additional 825,000 units at the same price.
As of June 30, SUN had borrowings
against its $1.5 billion revolving
credit facility of $724.7 million and
$11.1 million in standby letters of
credit, leaving unused availability of $764.2 million.
SUN's gross capital expenditures for the second quarter
excluding acquisitions totaled $48.4
million, which includes $7.0
million in maintenance capital. Of the $41.4 million in growth capital, $31.8 million was for purchase and leaseback
transactions for six Stripes stores, and approximately $10.0 million was for growth in the third-party
wholesale business, including new dealer and distributor supply
contracts.
The Partnership currently expects capital spending for the full
year 2015, excluding future acquisitions but including the
additional capital spending related to our 31.58% equity interest
in Sunoco LLC, to be within the following ranges (in millions)
Growth
|
|
|
Maintenance
|
Low
|
High
|
|
|
Low
|
High
|
$220
|
$270
|
|
|
$40
|
$50
|
Included in the above growth capital spending estimate are 35 to
40 new convenience stores that Stripes plans to build in 2015.
______________
1)
|
Adjusted EBITDA and
distributable cash flow are non-GAAP financial measures of
performance that have limitations and should not be considered as a
substitute for net income. Please refer to the discussion and
tables under "Reconciliations of Non-GAAP Measures" later in this
news release for a discussion of our use of Adjusted EBITDA and
distributable cash flow, and a reconciliation to net income for the
periods presented.
|
2)
|
On April 1, 2015 SUN
acquired a 31.58% membership interest in Sunoco, LLC. Because SUN
has a controlling financial interest in Sunoco, LLC as a result of
its 50.1% voting interest, SUN's consolidated financial statements
include 100% of Sunoco, LLC.
|
Second Quarter 2015 Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, August 6, at 9:00 a.m. CT (10:00 a.m.
ET) to discuss second quarter results and recent
developments. To participate, dial 412-902-0003 approximately
10 minutes early and ask for the Sunoco LP conference call. The
call will also be accessible live and for later replay via webcast
in the Investor Relations section of Sunoco's website at
www.SunocoLP.com under Events and Presentations. A
telephone replay will be available through August 13 by calling 201-612-7415 and using the
access code 13613135#.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership (MLP) that
operates more than 830 convenience stores and retail fuel sites and
also distributes motor fuel to convenience stores, independent
dealers, commercial customers and distributors. SUN conducts
its business through wholly owned subsidiaries, as well as through
its 31.58 percent interest in Sunoco, LLC, in partnership with an
affiliate of its parent company, Energy Transfer Partners. While
primarily engaged in natural gas, natural gas liquids, crude oil
and refined products transportation, ETP also operates a retail and
fuel distribution business through its interest in Sunoco, LLC, as
well as wholly owned subsidiary, Sunoco, Inc., which operate
approximately 440 convenience stores and retail fuel sites. For
more information, visit the Sunoco LP website at
www.SunocoLP.com.
Forward-Looking Statements
This news release contains "forward-looking statements" which
may describe Sunoco LP's ("SUN") objectives, expected results of
operations, targets, plans, strategies, costs, anticipated capital
expenditures, potential acquisitions, new store openings and/or new
dealer locations, management's expectations, beliefs or goals
regarding proposed transactions between ETP and SUN, the expected
timing of those transactions and the future financial and/or
operating impact of those transactions, including the anticipated
integration process and any related benefits, opportunities or
synergies. These statements are based on current plans,
expectations and projections and involve a number of risks and
uncertainties that could cause actual results and events to vary
materially, including but not limited to: execution, integration,
environmental and other risks related to acquisitions (including
drop-downs) and our overall acquisition strategy; competitive
pressures from convenience stores, gasoline stations, other
non-traditional retailers and other wholesale fuel distributors
located in SUN's markets; dangers inherent in storing and
transporting motor fuel; SUN's ability to renew or renegotiate
long-term distribution contracts with customers; changes in the
price of and demand for motor fuel; changing consumer preferences
for alternative fuel sources or improvement in fuel efficiency;
competition in the wholesale motor fuel distribution industry;
seasonal trends; severe or unfavorable weather conditions;
increased costs; SUN's ability to make and integrate acquisitions;
environmental laws and regulations; dangers inherent in the storage
of motor fuel; reliance on suppliers to provide trade credit terms
to adequately fund ongoing operations; acts of war and terrorism;
dependence on information technology systems; SUN's and ETP's
ability to consummate any proposed transactions, or to satisfy the
conditions precedent to the consummation of such transactions;
successful development and execution of integration plans; ability
to realize anticipated synergies or cost-savings and the potential
impact of the transactions on employee, supplier, customer and
competitor relationships; and other unforeseen factors. For a full
discussion of these and other risks and uncertainties, refer to the
"Risk Factors" section of SUN's and ETP's most recently filed
annual reports on Form 10-K. These forward-looking statements are
based on and include our estimates as of the date hereof.
Subsequent events and market developments could cause our estimates
to change. While we may elect to update these forward-looking
statements at some point in the future, we specifically disclaim
any obligation to do so, even if new information becomes available,
except as may be required by applicable law.
Qualified Notice
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
100 percent of Sunoco LP's distributions to non-U.S. investors as
being attributable to income that is effectively connected with a
United States trade or business.
Accordingly, Sunoco LP's distributions to non-U.S. investors are
subject to federal income tax withholding at the highest applicable
effective tax rate.
Contacts
Investors:
Scott Grischow, Director of
Investor Relations and Treasury
(361) 884-2463, scott.grischow@sunoco.com
Anne Pearson
Dennard-Lascar Associates
(210) 408-6321, apearson@dennardlascar.com
Media:
Jeff Shields, Communications
Manager
(215) 977-6056, jpshields@sunocoinc.com
Jessica Davila-Burnett, Public
Relations Director
(361) 654-4882, jessica.davila-burnett@sunoco.com
- Financial Schedules Follow -
SUNOCO
LP
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except units)
|
(unaudited)
|
|
|
December
31,
2014
|
|
|
June
30,
2015
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
67,190
|
|
|
$
|
62,771
|
Advances to
affiliates
|
|
396,376
|
|
|
|
198,646
|
Accounts receivable,
net
|
|
193,680
|
|
|
|
226,984
|
Receivables from
affiliates (MACS: $3,484 at December 31, 2014 and $4,862
at June 30, 2015)
|
|
24,741
|
|
|
|
33,138
|
Inventories,
net
|
|
325,054
|
|
|
|
362,469
|
Other current
assets
|
|
49,281
|
|
|
|
21,641
|
Total current
assets
|
|
1,056,322
|
|
|
|
905,649
|
Property and
equipment, net (MACS: $45,340 at December 31, 2014 and $44,554
at June 30, 2015)
|
|
1,300,280
|
|
|
|
1,376,489
|
Other
assets:
|
|
|
|
|
|
|
Goodwill
|
|
863,458
|
|
|
|
814,819
|
Intangible assets,
net
|
|
357,904
|
|
|
|
451,589
|
Deferred income
taxes
|
|
14,893
|
|
|
|
2,509
|
Other noncurrent
assets (MACS: $3,665 at December 31, 2014 and June 30,
2015)
|
|
18,133
|
|
|
|
27,288
|
Total
assets
|
$
|
3,610,990
|
|
|
$
|
3,578,343
|
Liabilities and
equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable
(MACS: $6 at December 31, 2014 and June 30, 2015)
|
|
293,141
|
|
|
|
382,050
|
Accounts payable to
affiliates
|
|
77,721
|
|
|
|
15,138
|
Accrued expenses and
other current liabilities (MACS: $484 at December 31, 2014 and
June 30, 2015)
|
|
234,899
|
|
|
|
193,796
|
Current maturities of
long-term debt (MACS: $8,422 at December 31, 2014 and $8,380 at
June 30, 2015)
|
|
13,757
|
|
|
|
13,704
|
Total current
liabilities
|
|
619,518
|
|
|
|
604,688
|
Revolving line of
credit
|
|
683,378
|
|
|
|
724,689
|
Long-term debt
(MACS: $48,029 at December 31, 2014 and $46,971 at June 30,
2015)
|
|
173,383
|
|
|
|
969,732
|
Other noncurrent
liabilities (MACS: $1,190 at December 31, 2014 and June 30,
2015)
|
|
51,062
|
|
|
|
52,817
|
Total
liabilities
|
|
1,527,341
|
|
|
|
2,351,926
|
Commitments and
contingencies (Note 12)
|
|
|
|
|
|
|
Partners'
capital:
|
|
|
|
|
|
|
Limited partner
interest:
|
|
|
|
|
|
|
Common unitholders -
public (20,036,329 units issued and outstanding at December 31,
2014 and June 30, 2015)
|
|
874,688
|
|
|
|
880,698
|
Common unitholders -
affiliated (4,062,848 units issued and outstanding at December 31,
2014 and 4,858,330 June 30, 2015)
|
|
31,378
|
|
|
|
49,930
|
Subordinated
unitholders - affiliated (10,939,436 units issued and outstanding
at December 31, 2014 and June 30, 2015)
|
|
236,310
|
|
|
|
239,503
|
Total partners'
capital
|
|
1,142,376
|
|
|
|
1,170,131
|
Predecessor
equity
|
|
946,917
|
|
|
|
—
|
Noncontrolling
interest
|
|
(5,644)
|
|
|
|
56,286
|
Total
equity
|
|
2,083,649
|
|
|
|
1,226,417
|
Total liabilities and
equity
|
$
|
3,610,990
|
|
|
$
|
3,578,343
|
Parenthetical amounts represent assets and liabilities
attributable to consolidated variable interest entities of
Mid-Atlantic Convenience Stores, LLC (MACS) as of December 31, 2014 and June
30, 2015.
SUNOCO
LP
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
(in thousands,
except unit and per unit amounts)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June
30,
2014
|
|
|
June
30,
2015
|
|
|
June
30,
2014
|
|
|
June
30,
2015
|
|
|
Predecessor
|
|
|
Successor
|
|
|
Predecessor
|
|
|
Successor
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor fuel
sales
|
|
$
|
—
|
|
|
$
|
189,894
|
|
|
$
|
—
|
|
|
$
|
350,655
|
Wholesale motor fuel
sales to third parties
|
|
|
507,575
|
|
|
|
2,770,695
|
|
|
|
952,141
|
|
|
|
5,219,550
|
Wholesale motor fuel
sales to affiliates
|
|
|
862,549
|
|
|
|
1,156,763
|
|
|
|
1,628,639
|
|
|
|
1,993,448
|
Merchandise
sales
|
|
|
—
|
|
|
|
56,973
|
|
|
|
—
|
|
|
|
104,492
|
Rental
income
|
|
|
4,343
|
|
|
|
23,868
|
|
|
|
8,266
|
|
|
|
46,691
|
Other
income
|
|
|
1,558
|
|
|
|
7,792
|
|
|
|
3,566
|
|
|
|
15,060
|
Total
revenues
|
|
|
1,376,025
|
|
|
|
4,205,985
|
|
|
|
2,592,612
|
|
|
|
7,729,896
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor fuel cost
of sales
|
|
|
—
|
|
|
|
169,014
|
|
|
|
—
|
|
|
|
308,578
|
Wholesale motor fuel
cost of sales
|
|
|
1,353,057
|
|
|
|
3,757,475
|
|
|
|
2,546,503
|
|
|
|
6,943,692
|
Merchandise cost of
sales
|
|
|
—
|
|
|
|
42,213
|
|
|
|
—
|
|
|
|
77,038
|
Other
|
|
|
765
|
|
|
|
510
|
|
|
|
1,786
|
|
|
|
1,750
|
Total cost of
sales
|
|
|
1,353,822
|
|
|
|
3,969,212
|
|
|
|
2,548,289
|
|
|
|
7,331,058
|
Gross
profit
|
|
|
22,203
|
|
|
|
236,773
|
|
|
|
44,323
|
|
|
|
398,838
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
5,372
|
|
|
|
27,646
|
|
|
|
10,242
|
|
|
|
52,403
|
Other
operating
|
|
|
1,761
|
|
|
|
48,759
|
|
|
|
3,795
|
|
|
|
95,052
|
Rent
|
|
|
284
|
|
|
|
11,375
|
|
|
|
533
|
|
|
|
21,885
|
Gain on disposal of
assets
|
|
|
(36)
|
|
|
|
(30)
|
|
|
|
(36)
|
|
|
|
(156)
|
Depreciation,
amortization and accretion
|
|
|
3,333
|
|
|
|
33,230
|
|
|
|
6,659
|
|
|
|
63,466
|
Total operating
expenses
|
|
|
10,714
|
|
|
|
120,980
|
|
|
|
21,193
|
|
|
|
232,650
|
Income from
operations
|
|
|
11,489
|
|
|
|
115,793
|
|
|
|
23,130
|
|
|
|
166,188
|
Interest expense,
net
|
|
|
(1,774)
|
|
|
|
(20,322)
|
|
|
|
(3,276)
|
|
|
|
(27,453)
|
Income before income
taxes
|
|
|
9,715
|
|
|
|
95,471
|
|
|
|
19,854
|
|
|
|
138,735
|
Income tax (expense)
benefit
|
|
|
(120)
|
|
|
|
480
|
|
|
|
(127)
|
|
|
|
(350)
|
Net income and
comprehensive income
|
|
|
9,595
|
|
|
|
95,951
|
|
|
|
19,727
|
|
|
|
138,385
|
Less: Net income and
comprehensive income attributable to noncontrolling
interest
|
|
|
—
|
|
|
|
61,084
|
|
|
|
—
|
|
|
|
61,930
|
Less: Preacquisition
income from Sunoco LLC allocated to general partner
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,516
|
Net income and
comprehensive income attributable to partners
|
|
$
|
9,595
|
|
|
$
|
34,867
|
|
|
$
|
19,727
|
|
|
$
|
51,939
|
Net income per
limited partner unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common (basic and
diluted)
|
|
$
|
0.43
|
|
|
$
|
0.87
|
|
|
$
|
0.90
|
|
|
$
|
1.31
|
Common -
diluted
|
|
$
|
0.43
|
|
|
$
|
0.87
|
|
|
$
|
0.89
|
|
|
$
|
1.31
|
Subordinated (basic
and diluted)
|
|
$
|
0.43
|
|
|
$
|
0.87
|
|
|
$
|
0.90
|
|
|
$
|
1.31
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common units -
public
|
|
|
10,966,981
|
|
|
|
20,036,329
|
|
|
|
10,965,066
|
|
|
|
20,036,329
|
Common units -
affiliated
|
|
|
79,308
|
|
|
|
4,858,330
|
|
|
|
79,308
|
|
|
|
4,460,589
|
Subordinated units -
affiliated
|
|
|
10,939,436
|
|
|
|
10,939,436
|
|
|
|
10,939,436
|
|
|
|
10,939,436
|
Cash distribution
per unit
|
|
$
|
0.5197
|
|
|
$
|
0.6934
|
|
|
$
|
1.0218
|
|
|
$
|
1.3384
|
Key Operating Metrics
The following information is intended to provide investors with
a reasonable basis for assessing our historical operations but
should not serve as the only criteria for predicting our future
performance.
Beginning in late 2014, with the acquisition of MACS, we began
operating our business in two primary operating segments, wholesale
and retail, both of which are included as reportable segments. As a
result, the Predecessor periods operated as one segment, wholesale,
and the Successor period operated with our wholesale and retail
segments.
On April 1, 2015 we acquired a
31.58% membership interest in Sunoco LLC. Because we have a
controlling financial interest in Sunoco LLC as a result of our
50.1% voting interest our consolidated financial statements include
100% of Sunoco LLC. The 68.42% membership interest in Sunoco LLC
that we do not own is presented as noncontrolling interest in our
consolidated financial statements.
The following table sets forth, for the periods indicated,
information concerning key measures we rely on to gauge our
operating performance by segment (in thousands, except for selling
price and gross profit per gallon):
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
2014
|
|
|
2015
|
|
|
Predecessor
|
|
|
Successor
|
|
|
|
|
|
|
Wholesale
|
|
|
Retail
|
|
|
Total
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor fuel
sales (1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
189,894
|
|
|
$
|
189,894
|
|
Wholesale motor fuel
sales to third parties
|
|
|
507,575
|
|
|
|
2,770,695
|
|
|
|
—
|
|
|
|
2,770,695
|
|
Wholesale motor fuel
sales to affiliates
|
|
|
862,549
|
|
|
|
1,156,763
|
|
|
|
—
|
|
|
|
1,156,763
|
|
Merchandise
sales
|
|
|
—
|
|
|
|
—
|
|
|
|
56,973
|
|
|
|
56,973
|
|
Rental
income
|
|
|
4,343
|
|
|
|
17,403
|
|
|
|
6,465
|
|
|
|
23,868
|
|
Other
income
|
|
|
1,558
|
|
|
|
5,349
|
|
|
|
2,443
|
|
|
|
7,792
|
|
Total
revenue
|
|
|
1,376,025
|
|
|
|
3,950,210
|
|
|
|
255,775
|
|
|
|
4,205,985
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor
fuel
|
|
|
—
|
|
|
|
—
|
|
|
|
20,880
|
|
|
|
20,880
|
|
Wholesale motor
fuel
|
|
|
17,067
|
|
|
|
169,983
|
|
|
|
—
|
|
|
|
169,983
|
|
Merchandise
|
|
|
—
|
|
|
|
—
|
|
|
|
14,760
|
|
|
|
14,760
|
|
Rental and
other
|
|
|
5,136
|
|
|
|
22,241
|
|
|
|
8,909
|
|
|
|
31,150
|
|
Total gross
profit
|
|
$
|
22,203
|
|
|
$
|
192,224
|
|
|
$
|
44,549
|
|
|
$
|
236,773
|
|
Net income and
comprehensive income attributable to partners (4)
|
|
$
|
9,595
|
|
|
$
|
35,830
|
|
|
$
|
(963)
|
|
|
$
|
34,867
|
|
Adjusted EBITDA
attributable to partners (4) (5)
|
|
$
|
15,563
|
|
|
$
|
40,080
|
|
|
$
|
15,416
|
|
|
$
|
55,496
|
|
Distributable cash
flow attributable to partners, as adjusted (4) (5)
|
|
$
|
13,653
|
|
|
|
|
|
|
|
|
|
|
$
|
39,293
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total motor fuel
gallons sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
|
|
|
|
|
71,079
|
|
|
|
71,079
|
|
Wholesale
(2)
|
|
|
168,574
|
|
|
|
1,254,751
|
|
|
|
|
|
|
|
1,254,751
|
|
Wholesale contract
affiliated (3)
|
|
|
293,217
|
|
|
|
595,923
|
|
|
|
|
|
|
|
595,923
|
|
Motor fuel gross
profit (cents per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
|
|
|
|
|
27.4
|
¢
|
|
|
|
|
Wholesale
(2)
|
|
|
4.9
|
¢
|
|
|
8.0
|
¢
|
|
|
|
|
|
|
|
|
Wholesale contract
affiliated (3)
|
|
|
3.0
|
¢
|
|
|
3.5
|
¢
|
|
|
|
|
|
|
|
|
Volume-weighted
average for all gallons
|
|
|
3.7
|
¢
|
|
|
|
|
|
|
|
|
|
|
7.3
|
¢
|
Retail merchandise
margin
|
|
|
|
|
|
|
|
|
|
|
25.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Retail motor fuel
sales include sales of motor fuel at company operated convenience
stores beginning September 1, 2014.
|
(2)
|
Reflects all other
wholesale transactions excluding those pursuant to the Susser and
Sunoco, Inc. Distribution Contracts.
|
(3)
|
Reflects transactions
pursuant to the Susser and Sunoco, Inc. Distribution Contracts at
set margins as dictated by agreements.
|
(4)
|
Excludes the
noncontrolling interest results of operations related to our
consolidated VIE and Sunoco LLC.
|
(5)
|
We define EBITDA as
net income before net interest expense, income tax expense and
depreciation, amortization and accretion expense. Adjusted EBITDA
further adjusts EBITDA to reflect certain other non-recurring and
non-cash items. Effective September 1, 2014, as a result of the ETP
Merger and in an effort to conform the method by which we measure
our business to that of ETP's operations, we now define Adjusted
EBITDA to also include adjustments for unrealized gains and losses
on commodity derivatives and inventory fair value adjustments. We
define distributable cash flow as Adjusted EBITDA less cash
interest expense including the accrual of interest expense related
to our 2020 and 2023 Notes which is paid on a semi-annual basis,
current income tax expense, maintenance capital expenditures, and
other non-cash adjustments. Further adjustments are made to
distributable cash flow for certain transaction-related and
non-recurring expenses that are included in net income are
excluded.
|
Pro Forma Results of Operations
We have provided below certain supplemental pro forma
information for the three and six months ended June 30, 2015. The pro forma information gives
effect to the 68.42% noncontrolling interest in Sunoco LLC.
Pursuant to our 31.58% ownership interest in Sunoco LLC, the Sunoco
LP pro forma information reflects only that equity interest in
Sunoco LLC.
Management believes the pro forma presentation is useful to
investors because it provides investors comparable operating data
to support our Adjusted EBITDA and distributable cash flow
attributable to partners.
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2015
|
|
June 30,
2015
|
|
Pro
Forma
|
|
(unaudited)
|
|
(in thousands
except gross profit per gallon)
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
Retail
gross profit
|
$
|
20,880
|
|
|
$
|
42,077
|
|
Wholesale gross profit
|
|
77,761
|
|
|
|
132,598
|
|
Total fuel gross
profit
|
$
|
98,641
|
|
|
$
|
174,675
|
|
|
|
|
|
|
|
|
|
Operating
data
|
|
|
|
|
|
|
|
Motor fuel gallons
sold:
|
|
|
|
|
|
|
|
Retail
|
|
71,079
|
|
|
|
138,913
|
|
Wholesale
|
|
559,787
|
|
|
|
1,120,581
|
|
Wholesale contract affiliated
|
|
408,072
|
|
|
|
797,651
|
|
Total fuel
gallons
|
|
1,038,938
|
|
|
|
2,057,145
|
|
|
|
|
|
|
|
|
|
Motor fuel gross
profit (cents per gallon):
|
|
|
|
|
|
|
|
Retail
|
|
27.4
|
¢
|
|
|
29.6
|
¢
|
Wholesale
|
|
8.2
|
¢
|
|
|
7.6
|
¢
|
Wholesale contract affiliated
|
|
3.3
|
¢
|
|
|
3.2
|
¢
|
|
|
|
|
|
|
|
|
Volume-weighted
average for all gallons
|
|
7.6
|
¢
|
|
|
7.4
|
¢
|
|
|
|
|
|
|
|
|
|
|
We believe EBITDA, Adjusted EBITDA and distributable cash flow
are useful to investors in evaluating our operating performance
because:
- Adjusted EBITDA is used as a performance measure under our
revolving credit facility;
- securities analysts and other interested parties use such
metrics as measures of financial performance, ability to make
distributions to our unitholders and debt service
capabilities;
- they are used by our management for internal planning purposes,
including aspects of our consolidated operating budget, and capital
expenditures; and
- distributable cash flow provides useful information to
investors as it is a widely accepted financial indicator used by
investors to compare partnership performance, as it provides
investors an enhanced perspective of the operating performance of
our assets and the cash our business is generating.
EBITDA, Adjusted EBITDA and distributable cash flow are not
recognized terms under GAAP and do not purport to be alternatives
to net income (loss) as measures of operating performance or to
cash flows from operating activities as a measure of liquidity.
EBITDA, Adjusted EBITDA and distributable cash flow have
limitations as analytical tools, and one should not consider them
in isolation or as substitutes for analysis of our results as
reported under GAAP. Some of these limitations include:
- they do not reflect our total cash expenditures, or future
requirements for capital expenditures or contractual
commitments;
- they do not reflect changes in, or cash requirements for,
working capital;
- they do not reflect interest expense, or the cash requirements
necessary to service interest or principal payments on our
revolving credit facility or term loan;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and EBITDA and Adjusted EBITDA do not
reflect cash requirements for such replacements; and
- because not all companies use identical calculations, our
presentation of EBITDA, Adjusted EBITDA and distributable cash flow
may not be comparable to similarly titled measures of other
companies.
The following table presents a reconciliation of net income to
EBITDA, Adjusted EBITDA and distributable cash flow by segment for
the three months ended June 30, 2014 and 2015 (in
thousands):
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
2014
|
|
|
2015
|
|
|
Predecessor
|
|
|
Successor
|
|
|
|
|
|
|
Wholesale
|
|
|
Retail
|
|
|
Total
|
Net income and
comprehensive income
|
|
$
|
9,595
|
|
|
$
|
96,067
|
|
|
$
|
(116)
|
|
|
$
|
95,951
|
Depreciation,
amortization and accretion
|
|
|
3,333
|
|
|
|
22,074
|
|
|
|
11,156
|
|
|
|
33,230
|
Interest expense,
net
|
|
|
1,774
|
|
|
|
10,405
|
|
|
|
9,917
|
|
|
|
20,322
|
Income tax expense
(benefit)
|
|
|
120
|
|
|
|
(246)
|
|
|
|
(234)
|
|
|
|
(480)
|
EBITDA
|
|
|
14,822
|
|
|
|
128,300
|
|
|
|
20,723
|
|
|
|
149,023
|
Non-cash stock based
compensation
|
|
|
777
|
|
|
|
430
|
|
|
|
49
|
|
|
|
479
|
(Gain) loss on
disposal of assets
|
|
|
(36)
|
|
|
|
(33)
|
|
|
|
3
|
|
|
|
(30)
|
Unrealized loss on
commodity derivatives
|
|
|
—
|
|
|
|
785
|
|
|
|
—
|
|
|
|
785
|
Inventory fair value
adjustments (7)
|
|
|
—
|
|
|
|
(49,319)
|
|
|
|
(1,410)
|
|
|
|
(50,729)
|
Adjusted
EBITDA
|
|
$
|
15,563
|
|
|
$
|
80,163
|
|
|
$
|
19,365
|
|
|
$
|
99,528
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
|
—
|
|
|
|
40,083
|
|
|
|
3,949
|
|
|
|
44,032
|
Adjusted EBITDA
attributable to partners
|
|
|
15,563
|
|
|
|
40,080
|
|
|
|
15,416
|
|
|
|
55,496
|
Cash interest expense
(6)
|
|
|
1,644
|
|
|
|
|
|
|
|
|
|
|
|
15,088
|
Current income tax
expense (benefit)
|
|
|
105
|
|
|
|
|
|
|
|
|
|
|
|
(259)
|
Maintenance capital
expenditures
|
|
|
161
|
|
|
|
|
|
|
|
|
|
|
|
4,074
|
Distributable cash
flow attributable to partners
|
|
$
|
13,653
|
|
|
|
|
|
|
|
|
|
|
$
|
36,593
|
Transaction-related
expenses
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
2,700
|
Distributable cash
flow attributable to partners, as adjusted
|
|
$
|
13,653
|
|
|
|
|
|
|
|
|
|
|
$
|
39,293
|
|
|
(6)
|
Reflects the
partnership's cash interest paid less the cash interest paid on our
VIE debt of $4.0 million.
|
(7)
|
Due to the change in
fuel prices, we recorded a $50.7 million write-up of the LIFO value
of fuel inventory during the three months ended June 30,
2015.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sunoco-lp-announces-2q-2015-financial-and-operating-results-and-9th-consecutive-distribution-increase-300124482.html
SOURCE Sunoco LP