HOUSTON, Feb. 18, 2015 /PRNewswire/ -- Sunoco LP
(NYSE: SUN) (the "Partnership"), today announced financial and
operating results for the three and 12-month periods ended
December 31, 2014 and provided an
update on recent developments.
Reported net income attributable to partners for the quarter was
$30.1 million, or $0.83 per diluted unit, compared to $9.5 million, or $0.43 per diluted unit, in the fourth quarter of
2013. Reported net income includes the impact of $5.7 million, or $0.17 per diluted unit, in charges related to the
merger with Energy Transfer Partners, L.P. (NYSE: ETP) and other
acquisition activity.
Adjusted EBITDA(1) totaled $65.5 million, of which approximately two-thirds
was attributable to the acquisition of Mid-Atlantic Convenience
Stores, L.L.C. ("MACS") and Aloha Petroleum, Ltd. ("Aloha") in
early October and mid-December, respectively. By comparison,
adjusted EBITDA in the fourth quarter of 2013 was $14.1 million. Distributable cash
flow(1) for the quarter was $51.1
million, compared to $12.6
million a year ago.
Revenue in the fourth quarter was $1.3
billion, up approximately 20 percent compared to
$1.1 billion in the comparable period
last year. The increase was primarily the result of the
contribution of $39.3 million of
merchandise sales from the MACS and Aloha convenience stores
acquired during the quarter, along with a 46 percent increase in
gallons sold, partly offset by the impact of a 55-cent-per-gallon decrease in the average
selling price per gallon of fuel.
Total gross profit for the latest quarter was $93.2 million, compared to $20.0 million in the fourth quarter of
2013. Key drivers of the increase were the MACS and Aloha
acquisitions, organic growth in gallons sold and favorable fuel
margins. On a weighted average basis, fuel margin for all gallons
sold increased to 13.0 cents per
gallon, compared to 3.8 cents per
gallon a year earlier. Sales of retail gallons, a change in
the wholesale fuel customer mix and increased fuel margins
resulting from declining crude oil prices drove most of the margin
increase.
At December 31, SUN operated 153
retail convenience stores and fuel outlets in Virginia, Hawaii, Tennessee, Maryland and Georgia.
Affiliate customers included 656 Stripes® and Sac-N-Pac™
convenience stores operated by a subsidiary of our parent company,
ETP, as well as sales of motor fuel to ETP subsidiaries for resale
under consignment arrangements at approximately 85 independently
operated convenience stores. Motor fuel gallons sold to
affiliates during the fourth quarter increased 13 percent from a
year ago to 304.9 million gallons. Gross profit on these
gallons totaled $9.5 million, or
3.0 cents per gallon, versus
$8.1 million, or 3.0 cents per gallon, in the same period a year
ago.
Third-party customers included 738 independent dealers under
long-term fuel supply agreements, 55 independently operated
consignment locations and over 1,800 other commercial
customers. Total gallons sold to third parties increased
year-over-year by 65 percent to 241.5 million gallons. Gross
profit on these gallons was $33.3
million, or 17.6 cents per
gallon, compared to $7.6 million, or
5.2 cents per gallon, in the
prior-year period.
"Sunoco LP delivered outstanding results in the latest quarter,
led primarily by strength in motor fuel margins as well as growth
in gallons sold and strong merchandise performance from the
convenience stores and retail fuel outlets we recently added to our
portfolio," said Bob Owens, Sunoco
LP President and Chief Executive Officer. "These
factors combined allowed us to increase our quarterly distribution
to unitholders by 24 percent year-over-year.
"Our gross profit increased by 365 percent for the quarter, and
gallons sold increased by 46 percent over the same period last
year.
"We completed several strategic transactions in the fourth
quarter as part of our growth strategy. The most recent was
the acquisition of the Aloha wholesale and retail business in
Hawaii on December 16. On
October 1 we completed the
acquisition of MACS -- the first drop-down of assets from Energy
Transfer Partners to Sunoco LP. We also issued 9.1 million
new common units in our first public offering since our IPO.
"We plan to continue our expansion in 2015 through additional
asset contributions from ETP, through purchase and leasebacks of
Stripes stores, and through organic growth of new stores within our
existing retail footprint. In addition, we will continue to
look for opportunistic acquisitions like the Aloha assets," Owens
said.
FY 2014 Compared to FY 2013
Revenue for the full year 2014 totaled $5.4 billion, a 20 percent increase compared to
full year 2013, of which approximately $0.5
billion is attributable to the acquisition of MACS and
Aloha. Gross profit for this period increased 148 percent
year-over-year to $175.9
million. Total gallons of motor fuel sold to
affiliates increased by 12 percent to 1.2 billion gallons, and
gallons sold to third parties increased by 45 percent to 749.9
million gallons. On a weighted average basis, fuel margin for
all gallons sold increased to 7.0
cents per gallon for the full year 2014, versus 3.7 cents per gallon in the full year 2013.
Net income attributable to partners for the full year 2014
totaled $56.7 million, a 53 percent
increase compared to full year 2013. Adjusted EBITDA was
$122.3 million, compared to
$51.9 million for the 2013 period,
and distributable cash flow was $92.5
million, versus $47.7 million
for 2013.
The MACS acquisition was accounted for as a transaction between
entities under common control, which requires the Partnership to
retrospectively adjust its financial statements to include the
balances and operations of MACS from September 1, 2014, the date of common
control. Please refer to the financial statement schedules
for a reconciliation of this impact on our previously reported
results for the three and nine months ended September 30, 2014.
Distribution Increase
On February 2, 2015, the Board of
Directors of SUN's general partner declared a distribution for the
fourth quarter of 2014 of $0.60 per
unit, which corresponds to $2.40 per
unit on an annualized basis. This represents a 10 percent
increase compared to the distribution for the third quarter of 2014
and a 24 percent increase compared with the fourth quarter of 2013,
and is the seventh consecutive quarterly increase. The distribution
will be paid on February 27 to
unitholders of record on February 17.
SUN achieved a 2.3 times distribution coverage ratio for the
quarter, and 1.5 times for the 12 months ended December 31, 2014.
Aloha Acquisition
Sunoco LP completed its acquisition of Honolulu-based Aloha on December 16. Aloha is the largest independent
gasoline marketer and one of the largest convenience store
operators in Hawaii. The transaction included six fuel
storage terminals and a wholesale fuel distribution network that
markets to approximately 100 company- or dealer-operated
stores. The base purchase price was $240 million, subject to a post-closing earn-out,
closing adjustments and before transaction expenses, and was funded
under our revolving credit facility.
MACS Acquisition
The first planned acquisition of ETP's retail marketing assets
was completed on October 1, 2014,
with the purchase of MACS for total consideration of approximately
$768 million, subject to certain
working capital adjustments. The consideration paid to ETP
consisted of approximately 4 million newly issued SUN units and
$556 million in cash. MACS
consists of approximately 110 company-operated convenience stores
and 200 dealer-operated and consignment sites in Virginia, Maryland, Tennessee and Georgia.
New Dealers
The Partnership added 261 new contracted dealer sites in the
fourth quarter, and 6 sites were discontinued for a total of 793
third-party dealers and consignment locations supplied by SUN as of
December 31. Of that total, 256 are attributable to the
acquisitions of MACS and Aloha.
For the full year, SUN added a net of 287 contracted third-party
dealer contracts, including 275 acquired sites, 30 organic
additions and 18 discontinued sites.
Capital Spending
SUN's gross capital expenditures for the fourth quarter were
$69.1 million, which included
$64.5 million for growth capital and
$4.6 million for maintenance capital,
excluding the MACS and Aloha acquisitions. For the full year,
SUN invested $168.1 million in growth
capital and $4.9 million for
maintenance capital, excluding the acquisitions of MACS and Aloha.
Included in growth capex is the purchase of 33 new Stripes stores
that were leased back to Stripes.
We currently expect capital spending for the full year 2015,
excluding acquisitions, to be within the following ranges (in
millions):
Growth
|
|
Maintenance
|
Low
|
High
|
|
Low
|
High
|
$165
|
$215
|
|
$15
|
$25
|
Included in the above growth capital spending estimate is the
purchase and leaseback of 30 to 35 new convenience stores from
Stripes, out of the 35 to 40 that Stripes plans to build in
2015.
Liquidity
At December 31, 2014, SUN had
borrowings against its $1.25 billion
revolving line of credit of $683.4
million and $11.8 million in
standby letters of credit, leaving unused availability of
$554.8 million. Net debt to
Adjusted EBITDA, pro forma for the MACS and Aloha acquisitions, was
4.1 times at year-end.
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.
|
Fourth Quarter Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, February 19, at 10:00 a.m. ET (9:00 a.m.
CT) to discuss fourth quarter and full year 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 February 26 by calling 201-612-7415 and using the
access code 13599739#.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership (MLP) that
primarily distributes motor fuel to convenience stores, independent
dealers, commercial customers and distributors. SUN also operates
more than 150 convenience stores and retail fuel sites. SUN's
general partner is a wholly-owned subsidiary of ETP. While
primarily engaged in natural gas, natural gas liquids, crude oil
and refined products transportation, ETP also operates a retail
business with a network of more than 5,500 company- or
independently-operated retail fuel outlets and convenience stores
through its wholly owned subsidiaries, Sunoco, Inc. and Stripes
LLC. 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 and current report on Form 8-K/A filed
October 21, 2014. 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.
Contacts
Investors:
Clare McGrory, Senior VP, Finance
and Investor Relations
(610) 833-3400, cpmcgrory@sunocoinc.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@susser.com
Financial Schedules Follow
Sunoco
LP
Consolidated
Statements of Operations and Comprehensive Income
|
|
|
|
Predecessor
|
|
|
Successor
|
|
|
|
|
Year ended
December 31, 2013
|
|
January 1, 2014
through August 31, 2014
|
|
|
September 1, 2014
through December 31,
2014
|
|
Combined Year
ended December 31, 2014
|
|
(dollars in
thousands except unit and per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motor fuel
sales to third parties
|
|
$
|
1,502,786
|
|
$
|
1,275,422
|
|
|
$
|
941,243
|
|
$
|
2,216,665
|
Motor fuel
sales to affiliates
|
|
2,974,122
|
|
2,200,394
|
|
|
873,842
|
|
3,074,236
|
Merchandise
sales
|
|
—
|
|
—
|
|
|
52,275
|
|
52,275
|
Rental
income
|
|
10,060
|
|
11,690
|
|
|
16,020
|
|
27,710
|
Other
income
|
|
5,611
|
|
4,683
|
|
|
6,447
|
|
11,130
|
Total
revenues
|
|
4,492,579
|
|
3,492,189
|
|
|
1,889,827
|
|
5,382,016
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
Motor fuel cost of
sales to third parties
|
|
1,476,479
|
|
1,252,141
|
|
|
872,984
|
|
2,125,125
|
Motor fuel cost of
sales to affiliates
|
|
2,942,525
|
|
2,177,028
|
|
|
861,475
|
|
3,038,503
|
Merchandise
|
|
—
|
|
—
|
|
|
38,820
|
|
38,820
|
Other
|
|
2,611
|
|
2,339
|
|
|
1,303
|
|
3,642
|
Total cost of
sales
|
|
4,421,615
|
|
3,431,508
|
|
|
1,774,582
|
|
5,206,090
|
Gross
profit
|
|
70,964
|
|
60,681
|
|
|
115,245
|
|
175,926
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
16,814
|
|
17,075
|
|
|
16,358
|
|
33,433
|
Other
operating
|
|
3,187
|
|
4,964
|
|
|
29,288
|
|
34,252
|
Rent
|
|
1,014
|
|
729
|
|
|
3,459
|
|
4,188
|
Loss (gain) on
disposal of assets and impairment charge
|
|
324
|
|
(39)
|
|
|
2,670
|
|
2,631
|
Depreciation,
amortization and accretion
|
|
8,687
|
|
10,457
|
|
|
16,498
|
|
26,955
|
Total operating
expenses
|
|
30,026
|
|
33,186
|
|
|
68,273
|
|
101,459
|
Income from
operations
|
|
40,938
|
|
27,495
|
|
|
46,972
|
|
74,467
|
Interest expense,
net
|
|
(3,471)
|
|
(4,767)
|
|
|
(9,562)
|
|
(14,329)
|
Income before income
taxes
|
|
37,467
|
|
22,728
|
|
|
37,410
|
|
60,138
|
Income tax
expense
|
|
(440)
|
|
(218)
|
|
|
(2,134)
|
|
(2,352)
|
Net income and
comprehensive income
|
|
37,027
|
|
22,510
|
|
|
35,276
|
|
57,786
|
Net income
attributable to noncontrolling interest
|
|
—
|
|
—
|
|
|
(1,043)
|
|
(1,043)
|
Net income and
comprehensive income attributable to partners
|
|
$
|
37,027
|
|
$
|
22,510
|
|
|
$
|
34,233
|
|
$
|
56,743
|
|
Predecessor
|
|
|
Successor
|
|
|
|
|
|
Year ended
December 31, 2013
|
|
January 1, 2014
through August 31, 2014
|
|
|
September 1,
2014 through
December 31,
2014
|
|
Combined Year
ended December 31, 2014
|
|
(dollars in
thousands except unit and per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common - basic and
diluted
|
|
$
|
1.69
|
|
|
$
|
1.02
|
|
|
|
$
|
0.85
|
|
|
$
|
1.96
|
|
Subordinated - basic
and diluted
|
|
$
|
1.69
|
|
|
$
|
1.02
|
|
|
|
$
|
0.85
|
|
|
$
|
1.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common units -
(basic)
|
|
10,964,258
|
|
|
11,023,617
|
|
|
|
20,572,373
|
|
|
14,206,536
|
|
Common units -
(diluted)
|
|
10,986,102
|
|
|
11,048,745
|
|
|
|
20,578,755
|
|
|
14,223,648
|
|
Subordinated units -
affiliated (basic and diluted)
|
|
10,939,436
|
|
|
10,939,436
|
|
|
|
10,939,436
|
|
|
10,939,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash distribution
per unit
|
|
$
|
1.84
|
|
|
$
|
1.02
|
|
|
|
$
|
1.15
|
|
|
$
|
2.17
|
|
|
Sunoco
LP
Consolidated
Statements of Operations and Comprehensive Income
Unaudited
|
|
|
|
Predecessor
|
|
|
Successor
|
|
Three Months
Ended
December 31,
2013
|
|
|
Three Months
Ended
December 31,
2014
|
|
(dollars in
thousands, except unit and per unit amounts)
|
Revenues:
|
|
|
|
|
Motor fuel sales to
third parties
|
$
|
392,937
|
|
|
$
|
668,215
|
Motor fuel sales to
affiliates
|
716,322
|
|
|
617,732
|
Merchandise
sales
|
—
|
|
|
39,277
|
Rental
income
|
3,335
|
|
|
12,300
|
Other
income
|
1,874
|
|
|
4,098
|
Total
revenues
|
1,114,468
|
|
|
1,341,622
|
Cost of
sales:
|
|
|
|
|
Motor fuel cost of
sales to third parties
|
385,296
|
|
|
610,115
|
Motor fuel cost of
sales to affiliates
|
708,189
|
|
|
608,263
|
Merchandise
|
—
|
|
|
29,064
|
Other
|
934
|
|
|
996
|
Total cost of
sales
|
1,094,419
|
|
|
1,248,438
|
Gross
profit
|
20,049
|
|
|
93,184
|
Operating
expenses:
|
|
|
|
|
General and
administrative
|
4,937
|
|
|
13,137
|
Other
operating
|
1,382
|
|
|
23,028
|
Rent
|
249
|
|
|
2,204
|
Loss on disposal of
assets and impairment charge
|
118
|
|
|
2,670
|
Depreciation,
amortization and accretion
|
2,597
|
|
|
12,502
|
Total operating
expenses
|
9,283
|
|
|
53,541
|
Income from
operations
|
10,766
|
|
|
39,643
|
Interest expense,
net
|
(1,101)
|
|
|
(6,636)
|
Income before income
taxes
|
9,665
|
|
|
33,007
|
Income tax
expense
|
(142)
|
|
|
(2,114)
|
Net income and
comprehensive income
|
9,523
|
|
|
30,893
|
Net income
attributable to noncontrolling interest
|
—
|
|
|
(782)
|
Net income and
comprehensive income attributable to partners
|
$
|
9,523
|
|
|
$
|
30,111
|
|
Predecessor
|
|
|
Successor
|
|
Three Months Ended
December 31, 2013
|
|
|
Three Months Ended
December 31, 2014
|
|
|
(dollars in
thousands, except unit and per unit amounts)
|
Net income per
limited partner unit:
|
|
|
|
|
|
|
Common - basic and
diluted
|
$
|
0.43
|
|
|
|
$
|
0.83
|
|
Subordinated - basic
and diluted
|
$
|
0.43
|
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
Common units -
(basic)
|
11,014,487
|
|
|
|
23,745,231
|
|
Common units -
(diluted)
|
11,038,440
|
|
|
|
23,753,287
|
|
Subordinated units -
affiliated (basic and diluted)
|
10,939,436
|
|
|
|
10,939,436
|
|
|
|
|
|
|
|
|
Cash distribution
per unit
|
$
|
0.49
|
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
In accordance with generally accepted accounting principles,
amounts previously reported for the third quarter of 2014 have been
revised to reflect the retrospective consolidation of MACS into the
Partnership, as the transfer of MACS into the Partnership met the
definition of a transaction between entities under common
control. MACS is retroactively consolidated beginning
September 1, 2014, the date (for
accounting purposes) that ETP completed its merger with Susser
Holdings Corporation, the former parent company of Sunoco LP, and
the date the Partnership and MACS began to be under common
control. The following table presents the revenues and net
income attributable to partners for the previously separate
entities and the revised combined amounts to include the operations
of MACS effective September 1, 2014
(in thousands):
|
|
Three Months Ended
September 30, 2014
|
|
|
Nine Months Ended
September 30, 2014
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Partnership
|
|
$
|
1,304,922
|
|
|
|
$
|
3,897,534
|
|
MACS
|
|
142,860
|
|
|
|
142,860
|
|
Combined
|
|
$
|
1,447,782
|
|
|
|
$
|
4,040,394
|
|
|
|
|
|
|
|
|
|
Net income
attributable to partners:
|
|
|
|
|
|
|
|
Partnership
|
|
$
|
1,027
|
|
|
|
$
|
20,754
|
|
MACS
|
|
5,878
|
|
|
|
5,878
|
|
Combined
|
|
$
|
6,905
|
|
|
|
$
|
26,632
|
|
|
|
|
|
|
|
|
|
Sunoco
LP
Consolidated
Balance Sheets
|
|
|
|
Predecessor
|
|
|
Successor
|
|
|
December 31,
2013
|
|
|
December 31,
2014
|
|
|
(in thousands, except units)
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,150
|
|
|
|
$
|
67,151
|
|
Accounts receivable,
net of allowance for doubtful accounts of $323 and $1,220 at
December 31, 2013 and 2014, respectively
|
|
69,005
|
|
|
|
81,224
|
|
Receivables from
affiliates
|
|
49,879
|
|
|
|
19,574
|
|
Inventories,
net
|
|
11,122
|
|
|
|
48,646
|
|
Other current
assets
|
|
66
|
|
|
|
8,546
|
|
Total current
assets
|
|
138,222
|
|
|
|
225,141
|
|
Property and
equipment, net
|
|
180,127
|
|
|
|
905,465
|
|
Other
assets:
|
|
|
|
|
|
|
|
Marketable
securities
|
|
25,952
|
|
|
|
—
|
|
Goodwill
|
|
22,823
|
|
|
|
863,458
|
|
Intangible assets,
net
|
|
22,772
|
|
|
|
172,108
|
|
Deferred tax asset,
long-term portion
|
|
—
|
|
|
|
22,336
|
|
Other noncurrent
assets
|
|
188
|
|
|
|
16,416
|
|
Total
assets
|
|
$
|
390,084
|
|
|
|
$
|
2,204,924
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
110,432
|
|
|
|
$
|
95,932
|
|
Accounts payable to
affiliates
|
|
—
|
|
|
|
3,112
|
|
Accrued expenses and
other current liabilities
|
|
11,427
|
|
|
|
41,881
|
|
Current maturities of
long-term debt
|
|
525
|
|
|
|
13,757
|
|
Total current
liabilities
|
|
122,384
|
|
|
|
154,682
|
|
Revolving lines of
credit
|
|
156,210
|
|
|
|
683,378
|
|
Long-term
debt
|
|
29,416
|
|
|
|
173,383
|
|
Deferred tax
liability, long-term portion
|
|
222
|
|
|
|
—
|
|
Other noncurrent
liabilities
|
|
2,159
|
|
|
|
49,306
|
|
Total
liabilities
|
|
310,391
|
|
|
|
1,060,749
|
|
Commitments and
contingencies:
|
|
|
|
|
|
|
|
Partners'
capital:
|
|
|
|
|
|
|
|
Limited partner
interest:
|
|
|
|
|
|
|
|
Common
unitholders - public (10,936,352 units issued and outstanding as of
December 31, 2013 and 20,036,329 units issued and outstanding as of
December 31, 2014)
|
|
210,269
|
|
|
|
874,688
|
|
Common
unitholders - affiliated (79,308 units issued and outstanding as of
December 31, 2013 and 4,062,848 units issued and outstanding as of
December 31, 2014)
|
|
1,562
|
|
|
|
38,821
|
|
Subordinated
unitholders - affiliated (10,939,436 units issued and outstanding
at each December 31, 2013 and December 31, 2014)
|
|
(132,138)
|
|
|
|
236,310
|
|
Total partners'
capital
|
|
79,693
|
|
|
|
1,149,819
|
|
Noncontrolling
interests
|
|
—
|
|
|
|
(5,644)
|
|
Total
equity
|
|
79,693
|
|
|
|
1,144,175
|
|
Total liabilities and
equity
|
|
$
|
390,084
|
|
|
|
$
|
2,204,924
|
|
Key Operating Metrics
The following table sets forth, for the periods indicated,
information concerning key measures we rely on to gauge our
operating performance. 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.
The key operating metrics presented below for the twelve months
ended December 31, 2014, are the
combined results of operations for the Partnership for the
predecessor period from January 1,
2014 through ended August 31,
2014, and the successor period from September 1, 2014 through December 31, 2014. Please refer to
the Consolidated Statements of Operations and Comprehensive Income
included herein for the results of the individual periods.
|
Three Months
Ended
|
|
|
Year
Ended
|
|
December 31,
2013
|
|
December 31,
2014
|
|
|
December 31,
2013
|
|
December 31,
2014
|
|
(dollars and
gallons in thousands, except motor fuel pricing and gross profit
per gallon)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor fuel
sales
|
$
|
—
|
|
|
$
|
168,000
|
|
|
|
$
|
—
|
|
|
$
|
228,895
|
|
Wholesale motor fuel
sales to third parties
|
392,937
|
|
|
500,215
|
|
|
|
1,502,786
|
|
|
1,987,770
|
|
Wholesale motor fuel
sales to affiliates
|
716,322
|
|
|
617,732
|
|
|
|
2,974,122
|
|
|
3,074,236
|
|
Merchandise
sales
|
—
|
|
|
39,277
|
|
|
|
—
|
|
|
52,275
|
|
Rental and other
income
|
5,209
|
|
|
16,398
|
|
|
|
15,671
|
|
|
38,840
|
|
Total
revenues
|
1,114,468
|
|
|
1,341,622
|
|
|
|
4,492,579
|
|
|
5,382,016
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor
fuel
|
—
|
|
|
24,786
|
|
|
|
—
|
|
|
30,392
|
|
Wholesale motor fuel
to third parties
|
7,641
|
|
|
33,314
|
|
|
|
26,307
|
|
|
61,148
|
|
Wholesale motor fuel
to affiliates
|
8,133
|
|
|
9,469
|
|
|
|
31,597
|
|
|
35,733
|
|
Merchandise
|
—
|
|
|
10,213
|
|
|
|
—
|
|
|
13,455
|
|
Other
|
4,275
|
|
|
15,402
|
|
|
|
13,060
|
|
|
35,198
|
|
Total gross
profit
|
20,049
|
|
|
93,184
|
|
|
|
70,964
|
|
|
175,926
|
|
Net income
attributable to partners
|
$
|
9,523
|
|
|
$
|
30,111
|
|
|
|
$
|
37,027
|
|
|
$
|
56,743
|
|
Adjusted EBITDA
(1)
|
$
|
14,067
|
|
|
$
|
65,486
|
|
|
|
$
|
51,885
|
|
|
$
|
122,313
|
|
Distributable cash
flow (1)
|
$
|
12,648
|
|
|
$
|
51,114
|
|
|
|
$
|
47,679
|
|
|
$
|
92,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total motor fuel
gallons sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
—
|
|
|
60,247
|
|
|
|
—
|
|
|
83,419
|
|
Wholesale
third-party
|
146,043
|
|
|
241,516
|
|
|
|
517,775
|
|
|
749,925
|
|
Wholesale
affiliated
|
269,544
|
|
|
304,872
|
|
|
|
1,053,259
|
|
|
1,178,619
|
|
Motor fuel gross
profit cents per gallon:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
—
|
|
|
44.5
|
¢
|
|
|
—
|
|
|
39.3
|
¢
|
Wholesale
third-party
|
5.2
|
¢
|
|
17.6
|
¢
|
|
|
5.1
|
¢
|
|
9.6
|
¢
|
Wholesale
affiliated
|
3.0
|
¢
|
|
3.0
|
¢
|
|
|
3.0
|
¢
|
|
3.0
|
¢
|
Volume-weighted
average for all gallons
|
3.8
|
¢
|
|
13.0
|
¢
|
|
|
3.7
|
¢
|
|
7.0
|
¢
|
Retail merchandise
margin
|
—
|
|
|
26.0
|
%
|
|
|
—
|
|
|
25.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
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. We define distributable cash flow as Adjusted
EBITDA less cash interest expense, current income tax expense,
maintenance capital expenditures, and other non-cash
adjustments. EBITDA, Adjusted EBITDA and distributable cash
flow are not financial measures calculated in accordance with
GAAP.
|
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 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 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 loans;
- 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:
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
(in
thousands)
|
Net
income
|
$
|
9,523
|
|
|
$
|
30,893
|
|
|
$
|
37,027
|
|
|
$
|
57,786
|
|
Depreciation,
amortization and accretion
|
2,597
|
|
|
12,502
|
|
|
8,687
|
|
|
26,955
|
|
Interest expense,
net
|
1,101
|
|
|
6,636
|
|
|
3,471
|
|
|
14,329
|
|
Income tax
expense
|
142
|
|
|
2,114
|
|
|
440
|
|
|
2,352
|
|
EBITDA
|
13,363
|
|
|
52,145
|
|
|
49,625
|
|
|
101,422
|
|
Non-cash compensation
expense
|
586
|
|
|
778
|
|
|
1,936
|
|
|
6,080
|
|
Loss on disposal
of assets and impairment charge
|
118
|
|
|
2,670
|
|
|
324
|
|
|
2,631
|
|
Unrealized gains on
commodity derivatives
|
—
|
|
|
(1,226)
|
|
|
—
|
|
|
(1,433)
|
|
Inventory fair value
adjustments
|
—
|
|
|
11,119
|
|
|
—
|
|
|
13,613
|
|
Adjusted
EBITDA
|
14,067
|
|
|
65,486
|
|
|
51,885
|
|
|
122,313
|
|
Cash interest
expense
|
1,006
|
|
|
6,255
|
|
|
3,090
|
|
|
12,029
|
|
Income tax expense
(current)
|
136
|
|
|
3,003
|
|
|
302
|
|
|
3,275
|
|
Maintenance capital
expenditures
|
277
|
|
|
4,332
|
|
|
814
|
|
|
5,196
|
|
MACS acquisition
adjustment (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
8,282
|
|
Earnings attributable
to noncontrolling interest
|
—
|
|
|
782
|
|
|
—
|
|
|
1,043
|
|
Distributable cash
flow
|
$
|
12,648
|
|
|
$
|
51,114
|
|
|
$
|
47,679
|
|
|
$
|
92,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjustment includes
MACS' results of operations for the period September 1, 2014
through September 30, 2014. The initial date of common
control was September 1, 2014 and as such, MACS results have been
included in our results of operations from that date
forward.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sunoco-lp-announces-4q-and-full-year-2014-financial-and-operating-results-300038194.html
SOURCE Sunoco LP