HOUSTON, Nov. 4, 2015 /PRNewswire/ -- Sunoco LP
(NYSE: SUN) ("SUN" or the "Partnership") today announced financial
and operating results for the three months ended September 30, 2015.
Pro forma Adjusted EBITDA attributable to partners totaled
$148.7 million, compared with
Adjusted EBITDA attributable to partners of $14.0 million in the third quarter of 2014.
Third quarter pro forma Adjusted EBITDA attributable to
partners excludes July pre-acquisition earnings for Susser Holdings
Corporation and transaction-related expenses.
Distributable cash flow attributable to partners, as adjusted,
was $112.4 million, compared to
$12.2 million a year earlier, and
distributable cash flow per common unit was $1.77. The favorable year-over-year
comparisons primarily reflect the contributions from the dropdown
acquisitions of Susser Holdings Corporation ("Susser") in
July 2015, 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
affiliate, Energy Transfer Partners, L.P. (NYSE: ETP), along with
the purchase of Aloha Petroleum in December
2014 and the Aziz Quick Stop stores in August.
On November 3, the Board of
Directors of SUN's general partner declared a distribution for the
third quarter of 2015 of $0.7454 per
unit, which corresponds to $2.9816
per unit on an annualized basis. This represents a 7.5
percent increase compared to the distribution for the second
quarter of 2015 and an approximate 37 percent increase compared
with the third quarter of 2014. This is the Partnership's 10th
consecutive quarterly distribution increase. The distribution will
be paid on November 27 to unitholders
of record on November 17. SUN
achieved a 2.0 times distribution coverage ratio for the third
quarter.
Revenue was $4.5 billion, up 243.9
percent compared to $1.3 billion in
the third quarter of 2014. The increase was the result of the
contribution of merchandise and retail fuel sales from the Susser,
MACS and Aloha convenience stores, the wholesale fuel distribution
sales from MACS, Aloha Petroleum and SUN's interest in Sunoco, LLC
on a consolidated basis and higher rental income.
Total gross profit was $381.1
million, compared to $21.9
million in the third quarter of 2014. Key drivers of
the increase were the contributions from the previously mentioned
acquisitions, which resulted in higher-margin retail fuel gallons
and merchandise being added to the overall sales mix.
Net income attributable to partners was $27.5 million, or $0.30 per diluted unit, versus $1.0 million, or $0.04 per diluted unit, in the third quarter of
last year.
On a weighted average basis, excluding non-controlling interest,
fuel margin for all gallons sold increased to 20.6 cents per gallon, compared to 3.8 cents per gallon a year ago. Sales of
higher margin retail gallons by Susser, 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.
Adjusted EBITDA attributable to partners related to the
wholesale segment was $76.4 million
in the third quarter. Excluding the non-controlling interest,
total wholesale gallons sold in the third quarter were 698.8
million, compared with 468.4 million in the third quarter of last
year, an increase of 49.2 percent. This includes gallons sold
to affiliate-operated convenience stores, consignment stores and
third-party customers, including independent dealers, fuel
distributors and commercial customers.
As a result of the Susser Holdings acquisition which converted
legacy Susser wholesale affiliate volumes to retail volumes, motor
fuel gallons sold to affiliates decreased to 90.4 million gallons
during the third quarter of 2015. Affiliate customers for the
quarter included Sunoco retail fuel and convenience store sites
operated by a subsidiary of ETP and that currently remain at
ETP.
Other third-party wholesale gallons increased from a year ago by
267.4 percent to 608.4 million gallons related to the acquisitions
of MACS, Aloha and 31.58 percent of Sunoco LLC. Gross profit
on these gallons was 15.2 cents per
gallon, compared to 5.3 cents per
gallon a year earlier, driven by the change in customer mix related
to the acquisitions.
Adjusted EBITDA attributable to partners related to the retail
segment, including both fuel and merchandise, was $95.3 million in the third quarter. Total
retail gallons sold during the third quarter totaled 353.6 million
gallons on which the Partnership earned 34.1
cents per gallon. Merchandise sales totaled
$429.9 million and contributed
$142.5 million of gross profit at a
margin of approximately 33.2%.
Retail gallons sold by the newly acquired Susser locations
during the third quarter totaled 300.6 million gallons. Gross
profit on these gallons was $86.0
million. Merchandise sales from these locations
totaled $368.6 million and
contributed $127.3 million of gross
profit. On a same store sales basis, the retail business in
the Southwest recorded a 2.7 percent increase in merchandise sales
and a 1.9 percent decline in fuel gallons for the quarter.
Excluding markets that are directly impacted by lower oil and gas
activity, SUN achieved a 4.7 percent increase in merchandise sales
and a 0.1 percent increase in fuel gallons, on a same store
basis. As of September 30, SUN
operated 706 retail convenience stores and fuel outlets in
Texas, Oklahoma and New Mexico.
The remaining retail business is comprised of locations from the
MACS and Aloha acquisitions. On a same store sale basis, the
MACS and Aloha retail business achieved 2.5 percent growth in fuel
gallons and 15 percent on merchandise for the quarter. As of
September 30, SUN operated 157 retail
convenience stores and fuel outlets in Virginia, Hawaii, Tennessee, Maryland and Georgia.
SUN's other recent accomplishments include the following:
- On July 31 SUN completed the
acquisition of Susser Holdings Corporation from affiliates of ETP
in a transaction valued at approximately $1.93 billion. SUN paid approximately
$967 million in cash and issued to
ETP's subsidiaries approximately 21.98 million Class B SUN Units
valued at $967 million. These units
were converted to common units on August 19,
2015. The Susser acquisition was accounted for as a
transaction between entities under common control, which requires
SUN to retrospectively adjust its financial statements to include
the balances and operations of Susser from September 1, 2014, the date of common
control.
- In August, SUN completed the acquisition of 27 Aziz Quick Stop
convenience stores in South Texas
and is in the process of rebranding most of the stores to the
Stripes convenience store brand. The Partnership also expects to
complete the previously announced acquisition of a wholesale motor
fuel distribution business serving the Northeastern United States for $57 million, plus inventory value, in the fourth
quarter. This acquisition is expected to be immediately accretive
to SUN with respect to distributable cash flow and will be funded
using amounts available under SUN's revolving credit facility.
- On July 20, in connection with
the Susser acquisition, SUN issued $600
million of 5.5 percent senior notes due 2020 through an
upsized private offering that raised net proceeds of $592.5 million. The Partnership also 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.
- As of September 30, SUN had
outstanding borrowings under its $1.5
billion revolving credit facility of $875.0 million (and $11.8
million in standby letters of credit) and its credit ratio,
as defined by the credit agreement, was 4.4 times.
SUN's gross capital expenditures for the third quarter excluding
acquisitions totaled $94.5
million.
An analysis of SUN's segment results and other supplementary
data is provided after the financial tables shown below.
Third Quarter 2015 Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, November 5, at 9:00 a.m. CT (10:00 a.m.
ET) to discuss third 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 November 12 by calling 201-612-7415 and using the
access code 13622354#.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that
operates more than 850 convenience stores and retail fuel sites and
distributes motor fuel to c-stores, independent dealers, commercial
customers and distributors located in 30 states at approximately
6,800 sites, both directly and through our 31.6 percent interest in
Sunoco, LLC, owned in partnership with Energy Transfer Partners
(NYSE: ETP). Our parent -- Energy Transfer Equity (NYSE: ETE) --
owns SUN's general partner and incentive distribution rights.
ETP owns a 50.8% limited partner interest. For more information,
visit the Sunoco LP website at www.SunocoLP.com
Forward-Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management's control. An extensive list of factors that can affect
future results are discussed in the Partnership's Annual Report on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. The Partnership undertakes no
obligation to update or revise any forward-looking statement to
reflect new information or events.
The information contained in this press release is available on
our website at www.SunocoLP.com
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@susser.com
- Financial Schedules Follow –
SUNOCO
LP
CONSOLIDATED
BALANCE SHEETS
(in thousands,
except units)
(unaudited)
|
|
|
December 31,
2014
|
|
September 30,
2015
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
125,426
|
|
$
|
47,773
|
Advances to
affiliates
|
|
396,376
|
|
|
242,639
|
Accounts receivable,
net
|
|
257,065
|
|
|
317,840
|
Receivables from
affiliates (MACS: $3,484 at December 31,
2014 and $5,549 at
September 30, 2015)
|
|
4,941
|
|
|
25,222
|
Inventories,
net
|
|
440,294
|
|
|
350,613
|
Other current
assets
|
|
72,557
|
|
|
65,782
|
Total current
assets
|
|
1,296,659
|
|
|
1,049,869
|
Property and
equipment, net (MACS: $45,340 at December 31, 2014
and $44,161 at September 30,
2015)
|
|
2,081,126
|
|
|
2,298,004
|
Other
assets:
|
|
|
|
|
|
Goodwill
|
|
1,854,436
|
|
|
1,799,044
|
Intangible assets,
net
|
|
893,455
|
|
|
980,591
|
Other noncurrent
assets (MACS: $3,665 at December 31, 2014 and September 30,
2015)
|
|
35,568
|
|
|
52,085
|
Total
assets
|
$
|
6,161,244
|
|
$
|
6,179,593
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
(MACS: $6 at December 31, 2014 and September 30,
2015)
|
$
|
383,496
|
|
$
|
439,158
|
Accounts payable to
affiliates
|
|
56,969
|
|
|
35,449
|
Accrued expenses and
other current liabilities (MACS: $484 at December 31,
2014 and September 30,
2015)
|
|
291,047
|
|
|
253,777
|
Current maturities of
long-term debt (MACS: $8,422 at December 31, 2014
and $8,393 at September 30,
2015)
|
|
13,772
|
|
|
13,762
|
Total current
liabilities
|
|
745,284
|
|
|
742,146
|
Revolving line of
credit
|
|
683,378
|
|
|
875,000
|
Long-term debt
(MACS: $48,029 at December 31, 2014 and $46,400 at September 30,
2015)
|
|
408,826
|
|
|
1,568,447
|
Deferred income tax
liability
|
|
391,332
|
|
|
419,303
|
Other noncurrent
liabilities (MACS: $1,190 at December 31, 2014 and September 30,
2015)
|
|
89,268
|
|
|
95,552
|
Total
liabilities
|
|
2,318,088
|
|
|
3,700,448
|
Commitments and
contingencies (Note 13)
|
|
|
|
|
|
Partners'
capital:
|
|
|
|
|
|
Limited partner
interest:
|
|
|
|
|
|
Common unitholders -
public (20,036,329 units issued and outstanding at
December 31, 2014 and 25,536,329 at
September 30, 2015)
|
|
874,688
|
|
|
1,092,954
|
Common unitholders -
affiliated (4,062,848 units issued and outstanding at
December 31, 2014 and 26,837,310 at
September 30, 2015)
|
|
27,459
|
|
|
1,267,056
|
Subordinated
unitholders - affiliated (10,939,436 units issued and outstanding
at December 31, 2014 and September
30, 2015)
|
|
—
|
|
|
74,991
|
Class A unitholders -
held by subsidiary (no units issued or outstanding at
December 31, 2014 and 11,018,744 at
September 30, 2015)
|
|
—
|
|
|
—
|
Total partners'
capital
|
|
902,147
|
|
|
2,435,001
|
Predecessor
equity
|
|
2,946,653
|
|
|
—
|
Noncontrolling
interest
|
|
(5,644)
|
|
|
44,144
|
Total
equity
|
|
3,843,156
|
|
|
2,479,145
|
Total liabilities and
equity
|
$
|
6,161,244
|
|
$
|
6,179,593
|
|
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 September 30, 2015.
|
SUNOCO
LP
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands,
except unit and per unit amounts)
(unaudited)
|
|
|
July 1, 2014
through August 31, 2014
|
|
|
September 1, 2014
through September 30, 2014
|
|
Three Months Ended
September 30, 2015
|
|
Predecessor
|
|
|
Successor
|
Revenues
|
|
|
|
|
|
|
|
|
|
Retail motor fuel
sales
|
$
|
—
|
|
|
$
|
350,689
|
|
$
|
854,140
|
Wholesale motor fuel
sales to third parties
|
|
323,281
|
|
|
|
1,021,267
|
|
|
2,664,186
|
Wholesale motor fuel
sales to affiliates
|
|
571,755
|
|
|
|
271,726
|
|
|
500,362
|
Merchandise
sales
|
|
—
|
|
|
|
115,070
|
|
|
429,891
|
Rental
income
|
|
3,424
|
|
|
|
2,531
|
|
|
18,411
|
Other
|
|
1,117
|
|
|
|
9,300
|
|
|
20,327
|
Total
revenues
|
|
899,577
|
|
|
|
1,770,583
|
|
|
4,487,317
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
Retail motor fuel cost
of sales
|
|
—
|
|
|
|
326,538
|
|
|
740,632
|
Wholesale motor fuel
cost of sales
|
|
882,666
|
|
|
|
1,300,425
|
|
|
3,076,942
|
Merchandise cost of
sales
|
|
—
|
|
|
|
78,091
|
|
|
287,364
|
Other
|
|
553
|
|
|
|
426
|
|
|
1,232
|
Total cost of
sales
|
|
883,219
|
|
|
|
1,705,480
|
|
|
4,106,170
|
Gross
profit
|
|
16,358
|
|
|
|
65,103
|
|
|
381,147
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
6,833
|
|
|
|
10,844
|
|
|
42,752
|
Other
operating
|
|
1,169
|
|
|
|
55,025
|
|
|
183,623
|
Rent
|
|
196
|
|
|
|
5,048
|
|
|
23,586
|
Loss (gain) on
disposal of assets
|
|
(3)
|
|
|
|
(34)
|
|
|
696
|
Depreciation,
amortization and accretion
|
|
3,798
|
|
|
|
13,309
|
|
|
45,601
|
Total operating
expenses
|
|
11,993
|
|
|
|
84,192
|
|
|
296,258
|
Income from
operations
|
|
4,365
|
|
|
|
(19,089)
|
|
|
84,889
|
Interest expense,
net
|
|
(1,491)
|
|
|
|
(3,371)
|
|
|
(28,517)
|
Income before income
taxes
|
|
2,874
|
|
|
|
(22,460)
|
|
|
56,372
|
Income tax
expense
|
|
(91)
|
|
|
|
(980)
|
|
|
(28,972)
|
Net income (loss)
and comprehensive income (loss)
|
|
2,783
|
|
|
|
(23,440)
|
|
|
27,400
|
Less: Net loss and
comprehensive loss attributable to noncontrolling
interest
|
|
—
|
|
|
|
—
|
|
|
(12,142)
|
Less: Preacquisition
income allocated to general partner
|
|
—
|
|
|
|
(21,684)
|
|
|
11,998
|
Net income (loss)
and comprehensive income (loss) attributable to
partners
|
$
|
2,783
|
|
|
$
|
(1,756)
|
|
$
|
27,544
|
Net income (loss)
per limited partner unit:
|
|
|
|
|
|
|
|
|
|
Common (basic and
diluted)
|
$
|
0.13
|
|
|
$
|
(0.09)
|
|
$
|
0.30
|
Subordinated (basic
and diluted)
|
$
|
0.13
|
|
|
$
|
(0.09)
|
|
$
|
0.53
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
|
|
Common units -
public
|
|
10,957,974
|
|
|
|
10,974,491
|
|
|
24,340,677
|
Common units -
affiliated
|
|
79,308
|
|
|
|
79,308
|
|
|
19,431,349
|
Subordinated units -
affiliated
|
|
10,939,436
|
|
|
|
10,939,436
|
|
|
10,939,436
|
Cash distribution
per unit
|
$
|
—
|
|
|
$
|
0.5457
|
|
$
|
0.7454
|
SUNOCO
LP
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands,
except unit and per unit amounts)
(unaudited)
|
|
|
January 1, 2014
through August 31, 2014
|
|
|
September 1, 2014
through September 30, 2014
|
|
Nine Months Ended
September 30, 2015
|
|
Predecessor
|
|
|
Successor
|
Revenues
|
|
|
|
|
|
|
|
|
|
Retail motor fuel
sales
|
$
|
—
|
|
|
$
|
350,689
|
|
$
|
2,538,495
|
Wholesale motor fuel
sales to third parties
|
|
1,275,422
|
|
|
|
1,021,267
|
|
|
8,021,741
|
Wholesale motor fuel
sales to affiliates
|
|
2,200,394
|
|
|
|
271,726
|
|
|
1,391,145
|
Merchandise
sales
|
|
—
|
|
|
|
115,070
|
|
|
1,195,306
|
Rental
income
|
|
11,690
|
|
|
|
2,531
|
|
|
54,202
|
Other
|
|
4,683
|
|
|
|
9,300
|
|
|
59,834
|
Total
revenues
|
|
3,492,189
|
|
|
|
1,770,583
|
|
|
13,260,723
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
Retail motor fuel cost
of sales
|
|
—
|
|
|
|
326,538
|
|
|
2,281,887
|
Wholesale motor fuel
cost of sales
|
|
3,429,169
|
|
|
|
1,300,425
|
|
|
9,048,913
|
Merchandise cost of
sales
|
|
—
|
|
|
|
78,091
|
|
|
801,231
|
Other
|
|
2,339
|
|
|
|
426
|
|
|
3,744
|
Total cost of
sales
|
|
3,431,508
|
|
|
|
1,705,480
|
|
|
12,135,775
|
Gross
profit
|
|
60,681
|
|
|
|
65,103
|
|
|
1,124,948
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
17,075
|
|
|
|
10,844
|
|
|
131,175
|
Other
operating
|
|
4,964
|
|
|
|
55,025
|
|
|
504,813
|
Rent
|
|
729
|
|
|
|
5,048
|
|
|
70,097
|
Loss (gain) on
disposal of assets
|
|
(39)
|
|
|
|
(34)
|
|
|
1,531
|
Depreciation,
amortization and accretion
|
|
10,457
|
|
|
|
13,309
|
|
|
144,128
|
Total operating
expenses
|
|
33,186
|
|
|
|
84,192
|
|
|
851,744
|
Income from
operations
|
|
27,495
|
|
|
|
(19,089)
|
|
|
273,204
|
Interest expense,
net
|
|
(4,767)
|
|
|
|
(3,371)
|
|
|
(57,692)
|
Income before income
taxes
|
|
22,728
|
|
|
|
(22,460)
|
|
|
215,512
|
Income tax
expense
|
|
(218)
|
|
|
|
(980)
|
|
|
(43,657)
|
Net income (loss)
and comprehensive income (loss)
|
|
22,510
|
|
|
|
(23,440)
|
|
|
171,855
|
Less: Net income and
comprehensive income attributable to noncontrolling
interest
|
|
—
|
|
|
|
—
|
|
|
49,788
|
Less: Preacquisition
income (loss) allocated to general partner
|
|
—
|
|
|
|
(21,684)
|
|
|
64,789
|
Net income (loss)
and comprehensive income (loss) attributable to
partners
|
$
|
22,510
|
|
|
$
|
(1,756)
|
|
$
|
57,278
|
Net income (loss)
per limited partner unit:
|
|
|
|
|
|
|
|
|
|
Common (basic and
diluted)
|
$
|
1.02
|
|
|
$
|
(0.09)
|
|
$
|
0.97
|
Subordinated (basic
and diluted)
|
$
|
1.02
|
|
|
$
|
(0.09)
|
|
$
|
1.22
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
|
|
Common units -
public
|
|
10,944,309
|
|
|
|
10,974,491
|
|
|
21,486,878
|
Common units -
affiliated
|
|
79,308
|
|
|
|
79,308
|
|
|
9,507,137
|
Subordinated units -
affiliated
|
|
10,939,436
|
|
|
|
10,939,436
|
|
|
10,939,436
|
Cash distribution
per unit
|
$
|
1.0218
|
|
|
$
|
0.5457
|
|
$
|
2.0838
|
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 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
three month period ended September 30,
2014 includes retail operations for the month of
September 2014, only.
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 (in thousands, except for gross profit per
gallon):
|
|
Three Months ended
September 30,
|
|
|
2014
|
|
|
2015
|
|
|
Wholesale
(2)
|
|
Retail
(2)
|
|
Total
(1)
|
|
|
Wholesale
|
|
Retail
|
|
Total
|
|
|
(Combined)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor fuel
sales
|
|
$
|
—
|
|
$
|
350,689
|
|
$
|
350,689
|
|
|
$
|
—
|
|
$
|
854,140
|
|
$
|
854,140
|
Wholesale motor fuel
sales to third parties
|
|
|
1,344,548
|
|
|
—
|
|
|
1,344,548
|
|
|
|
2,664,186
|
|
|
—
|
|
|
2,664,186
|
Wholesale motor fuel
sales to affiliates
|
|
|
843,481
|
|
|
—
|
|
|
843,481
|
|
|
|
500,362
|
|
|
—
|
|
|
500,362
|
Merchandise
sales
|
|
|
—
|
|
|
115,070
|
|
|
115,070
|
|
|
|
—
|
|
|
429,891
|
|
|
429,891
|
Rental
income
|
|
|
5,710
|
|
|
245
|
|
|
5,955
|
|
|
|
11,332
|
|
|
7,079
|
|
|
18,411
|
Other
income
|
|
|
5,025
|
|
|
5,392
|
|
|
10,417
|
|
|
|
12,054
|
|
|
8,273
|
|
|
20,327
|
Total
revenue
|
|
|
2,198,764
|
|
|
471,396
|
|
|
2,670,160
|
|
|
|
3,187,934
|
|
|
1,299,383
|
|
|
4,487,317
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor
fuel
|
|
|
—
|
|
|
24,151
|
|
|
24,151
|
|
|
|
—
|
|
|
113,508
|
|
|
113,508
|
Wholesale motor
fuel
|
|
|
4,938
|
|
|
—
|
|
|
4,938
|
|
|
|
87,606
|
|
|
—
|
|
|
87,606
|
Merchandise
|
|
|
—
|
|
|
36,979
|
|
|
36,979
|
|
|
|
—
|
|
|
142,527
|
|
|
142,527
|
Rental and
other
|
|
|
9,757
|
|
|
5,636
|
|
|
15,393
|
|
|
|
27,787
|
|
|
9,719
|
|
|
37,506
|
Total gross
profit
|
|
$
|
14,695
|
|
$
|
66,766
|
|
$
|
81,461
|
|
|
$
|
115,393
|
|
$
|
265,754
|
|
$
|
381,147
|
Net income and
comprehensive income attributable to partners (6)
|
|
$
|
4,030
|
|
$
|
(3,003)
|
|
$
|
1,027
|
|
|
$
|
21,398
|
|
$
|
6,146
|
|
$
|
27,544
|
Adjusted EBITDA
attributable to partners (6) (7)
|
|
$
|
24,542
|
|
$
|
17,023
|
|
$
|
41,565
|
|
|
$
|
76,397
|
|
$
|
95,271
|
|
$
|
171,668
|
Distributable cash
flow attributable to partners, as adjusted (6) (7)
|
|
|
|
|
|
|
|
$
|
12,242
|
|
|
|
|
|
|
|
|
$
|
112,378
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total motor fuel
gallons sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
107,352
|
|
|
107,352
|
|
|
|
|
|
|
353,641
|
|
|
353,641
|
Wholesale
(3)
|
|
|
534,502
|
|
|
|
|
|
534,502
|
|
|
|
1,308,781
|
|
|
|
|
|
1,308,781
|
Wholesale contract
affiliated (4)
|
|
|
290,912
|
|
|
|
|
|
290,912
|
|
|
|
286,215
|
|
|
|
|
|
286,215
|
Motor fuel gross
profit (cents per gallon) (5):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
23.3¢
|
|
|
|
|
|
|
|
|
|
34.1¢
|
|
|
|
Wholesale
(3)
|
|
|
6.7¢
|
|
|
|
|
|
|
|
|
|
12.5¢
|
|
|
|
|
|
|
Wholesale contract
affiliated (4)
|
|
|
3.3¢
|
|
|
|
|
|
|
|
|
|
4.0¢
|
|
|
|
|
|
|
Volume-weighted
average for all gallons
|
|
|
|
|
|
|
|
|
7.6¢
|
|
|
|
|
|
|
|
|
|
15.2¢
|
Retail merchandise
margin
|
|
|
|
|
|
32.1%
|
|
|
|
|
|
|
|
|
|
33.2%
|
|
|
|
|
|
(1)
|
Reflects combined
results of the Predecessor period from July 1, 2014 through August
31, 2014, and the Successor period from September 1, 2014 to
September 30, 2014. The impact from "push down" accounting related
to the ETP Merger resulted in a $0.2 million increase in
depreciation, amortization and accretion expense.
|
(2)
|
Reflects MACS and
Sunoco LLC wholesale operations and MACS and Susser retail
operations, beginning September 1, 2014.
|
(3)
|
Reflects all
wholesale transactions excluding those pursuant to the Susser and
Sunoco, Inc. Distribution Contracts.
|
(4)
|
Reflects transactions
pursuant to the Susser Distribution Contract for July 1, 2014
through August 31, 2014 and the Sunoco, Inc. Distribution Contract
at set margins as dictated by the agreements.
|
(5)
|
Excludes impact of
inventory fair value adjustments consistent with our definition of
Adjusted EBITDA.
|
(6)
|
Excludes the
noncontrolling interest results of operations related to our
consolidated variable interest entities ("VIE"s and Sunoco
LLC.
|
(7)
|
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 Senior 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.
|
|
|
|
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 for the three
months ended September 30, 2014 and 2015 (in thousands):
|
|
Three Months ended
September 30,
|
|
|
|
2014
|
|
|
2015
|
|
|
|
Wholesale
(2)
|
|
|
Retail
(2)
|
|
|
Total
(1)
|
|
|
Wholesale
|
|
|
Retail
|
|
|
Total
|
|
|
|
(Combined)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and
comprehensive income
|
|
$
|
(25,524)
|
|
|
$
|
4,867
|
|
|
$
|
(20,657)
|
|
|
$
|
12,847
|
|
|
$
|
14,553
|
|
|
$
|
27,400
|
|
Depreciation, amortization and accretion
|
|
|
9,056
|
|
|
|
8,051
|
|
|
|
17,107
|
|
|
|
13,571
|
|
|
|
32,030
|
|
|
|
45,601
|
|
Interest
expense, net
|
|
|
2,465
|
|
|
|
2,397
|
|
|
|
4,862
|
|
|
|
12,338
|
|
|
|
16,179
|
|
|
|
28,517
|
|
Income tax expense
(benefit)
|
|
|
1,062
|
|
|
|
9
|
|
|
|
1,071
|
|
|
|
39
|
|
|
|
28,933
|
|
|
|
28,972
|
|
EBITDA
|
|
|
(12,941)
|
|
|
|
15,324
|
|
|
|
2,383
|
|
|
|
38,795
|
|
|
|
91,695
|
|
|
|
130,490
|
|
Non-cash
stock compensation expense
|
|
|
3,537
|
|
|
|
2,081
|
|
|
|
5,618
|
|
|
|
1,398
|
|
|
|
496
|
|
|
|
1,894
|
|
Loss on
disposal of assets & impairment charge
|
|
|
(92)
|
|
|
|
55
|
|
|
|
(37)
|
|
|
|
920
|
|
|
|
(224)
|
|
|
|
696
|
|
Unrealized gains on commodity derivatives
|
|
|
794
|
|
|
|
—
|
|
|
|
794
|
|
|
|
735
|
|
|
|
—
|
|
|
|
735
|
|
Inventory
fair value adjustments (9)
|
|
|
47,535
|
|
|
|
893
|
|
|
|
48,428
|
|
|
|
87,307
|
|
|
|
7,240
|
|
|
|
94,547
|
|
Adjusted
EBITDA
|
|
$
|
38,833
|
|
|
$
|
18,353
|
|
|
$
|
57,186
|
|
|
$
|
129,155
|
|
|
$
|
99,207
|
|
|
$
|
228,362
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
|
14,291
|
|
|
|
1,330
|
|
|
|
15,621
|
|
|
|
52,758
|
|
|
|
3,936
|
|
|
|
56,694
|
|
Adjusted EBITDA
attributable to partners
|
|
|
24,542
|
|
|
|
17,023
|
|
|
|
41,565
|
|
|
|
76,397
|
|
|
|
95,271
|
|
|
|
171,668
|
|
Cash interest expense
(8)
|
|
|
|
|
|
|
|
|
|
|
1,878
|
|
|
|
|
|
|
|
|
|
|
|
27,419
|
|
Income tax expense
(current)(benefit)
|
|
|
|
|
|
|
|
|
|
|
99
|
|
|
|
|
|
|
|
|
|
|
|
537
|
|
Maintenance capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
174
|
|
|
|
|
|
|
|
|
|
|
|
8,351
|
|
Preacquisition
earnings
|
|
|
|
|
|
|
|
|
|
|
27,610
|
|
|
|
|
|
|
|
|
|
|
|
23,841
|
|
Distributable cash
flow attributable to partners
|
|
|
|
|
|
|
|
|
|
$
|
11,804
|
|
|
|
|
|
|
|
|
|
|
$
|
111,520
|
|
Transaction-related
expenses
|
|
|
|
|
|
|
|
|
|
|
438
|
|
|
|
|
|
|
|
|
|
|
|
858
|
|
Distributable cash
flow attributable to partners, as adjusted
|
|
|
|
|
|
|
|
|
|
$
|
12,242
|
|
|
|
|
|
|
|
|
|
|
$
|
112,378
|
|
|
|
(8)
|
Reflects the
partnership's cash interest paid less the cash interest paid on our
VIE debt of $2.3 million during the three month period ended
September 30, 2015.
|
(9)
|
Due to the change in
fuel prices, we recorded a $48.4 million and $94.5 million
write-down of the value of fuel inventory during the three months
ended September 30, 2014 and 2015, respectively.
|
Pro Forma Results of Operations
We have provided below certain supplemental pro forma
information for the three and nine months ended September 30, 2015. The pro forma information
gives effect to the 68.42% noncontrolling interest in Sunoco LLC.
Pursuant to our 31.58% membership 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
September 30,
2015
|
|
Nine Months
Ended
September 30,
2015
|
|
|
Pro
Forma
|
|
|
(unaudited)
|
|
|
(in thousands
except gross profit per gallon)
|
Gross
profit
|
|
|
|
|
|
|
Retail gross
profit
|
|
$
|
113,508
|
|
$
|
256,608
|
Wholesale gross
profit
|
|
|
63,388
|
|
|
203,041
|
Total pro forma fuel
gross profit
|
|
$
|
176,896
|
|
$
|
459,649
|
|
|
|
|
|
|
|
Operating
data
|
|
|
|
|
|
|
Motor fuel gallons
sold:
|
|
|
|
|
|
|
Retail
|
|
|
353,641
|
|
|
1,060,297
|
Wholesale
|
|
|
608,397
|
|
|
1,788,579
|
Wholesale contract
affiliated
|
|
|
90,387
|
|
|
262,367
|
Total pro forma fuel
gallons
|
|
|
1,052,425
|
|
|
3,111,243
|
|
|
|
|
|
|
|
Motor fuel gross
profit (cents per gallon) (1):
|
|
|
|
|
|
|
Retail
|
|
34.1¢
|
|
24.4¢
|
Wholesale
|
|
15.2¢
|
|
11.3¢
|
Wholesale contract
affiliated
|
|
4.0¢
|
|
4.0¢
|
|
|
|
|
|
|
|
Pro forma
volume-weighted average for all gallons
|
|
20.6¢
|
|
15.2¢
|
|
|
|
|
|
|
|
(1)
|
Excludes impact of
inventory fair value adjustments consistent with the definition of
Adjusted EBITDA. For the three months ended September 30, 2015 the
retail and wholesale pro forma inventory fair value adjustments
were $7.2 million and $32.6 million, respectively. For
the nine months ended September 30, 2015 the retail and wholesale
pro forma inventory fair value adjustments were $2.1 million
and $10.4 million, respectively.
|
SUNOCO
LP
|
SUPPLEMENTAL
INFORMATION ON CAPITAL EXPENDITURES
|
(Tabular amounts
in millions)
|
(unaudited)
|
|
We currently expect
capital expenditures for the full year 2015, excluding acquisitions
but including the additional capital spending related to our 31.58%
interest in Sunoco LLC, and ownership interest in Susser effective
with respective dates of acquisition to be within the following
ranges (in millions):
|
|
|
|
Low
|
|
|
|
|
High
|
Maintenance
|
|
$
40
|
|
|
|
|
50
|
Growth
|
|
220
|
|
|
|
|
240
|
Total
|
|
$
260
|
|
|
|
|
290
|
|
On a 100%
consolidated basis, our maintenance capital expenditures would
range from $45 to $55 million and our growth capital expenditures
would range from $240 to $260 million. The above growth capital
spending estimate includes the 35 to 40 new Stripes convenience
stores that are planned to be built in 2015.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sunoco-lp-announces-3q-2015-financial-and-operating-results-and-10th-consecutive-distribution-increase-300172916.html
SOURCE Sunoco LP