Superior Plus Announces Sale of U.S. Wholesale and Retail Distillate Assets
April 03 2018 - 4:01PM
Business Wire
Superior Plus Corp. (“Superior”) announced today that Superior
Plus Energy Services (“SPES”), a subsidiary of Superior Plus LP,
has entered into a definitive agreement with Sunoco LP to sell the
wholesale refined fuels business and refined fuel terminal assets
located in New York for total cash consideration of US$39.8 million
(approximately Cdn. $51.4 million), plus net working capital at
closing (the “Transaction”). The Transaction is subject to
customary purchase price adjustments, closing conditions and is
expected to close in April 2018. Superior also closed on the sale
of certain retail distillate assets in Pennsylvania today to
another third-party for total cash consideration of approximately
US$16.0 million (approximately Cdn $20.7 million).
“The sale of these wholesale and retail distillate assets is
consistent with our goal to streamline our product offerings,
reduce our heating oil and distillate business exposure and grow
our U.S. business by investing in retail propane distribution
assets,” stated Luc Desjardins, Superior’s President and CEO. “The
proceeds from the sale of these assets allows us to repay debt
which can be redrawn to fund acquisitions of retail propane assets
consistent with our corporate strategy while maintaining our
earnings guidance for 2018.”
The assets to be sold to Sunoco LP are part of SPES’ wholesale
refined fuels operations across five states in the northeast U.S.
and includes three pipeline connected terminals located in New
York.
Superior confirms that, assuming completion of these
divestitures, its guidance for 2018 of Adjusted Operating Cash Flow
per share of $1.65 to $1.95 and Adjusted EBITDA of $295 million to
$335 million remains unchanged.
About Superior Plus Corp.Superior
consists of two primary operating businesses: Energy Distribution
includes the distribution of propane and distillates, and supply
portfolio management; and Specialty Chemicals includes the
manufacture and sale of specialty chemicals.
For further information about Superior, please visit our website
at: www.superiorplus.com or contact: Beth Summers, Executive Vice
President and Chief Financial Officer, Tel: (416) 340-6015, or Rob
Dorran, Vice President, Investor Relations and Treasurer, Tel:
(416) 340-6003, E-mail: investor-relations@superiorplus.com, Toll
Free: 1-866-490-PLUS (7587).
Forward Looking InformationCertain information included
herein is forward-looking, within the meaning of applicable
Canadian securities laws. Such information is typically identified
by words such as "anticipate", "believe", "could", "estimate",
"expect", "plan", "intend", "forecast", "future", "guidance",
"may", "predict", "project", "should", "strategy", "target", "will"
or similar expressions suggesting future outcomes. Forward-looking
information in this news release includes forward looking
information relating to the completion and timing of the
Transaction, the use of proceeds from, the transactions, and
Superior’s 2018 adjusted operating cash flow and Adjusted EBITDA
outlook. Superior believes the expectations reflected in such
forward-looking information are reasonable but no assurance can be
given that these expectations will prove to be correct and such
information should not be unduly relied upon.
Forward-looking information is not a guarantee of future
performance. By its very nature, forward-looking information
involves inherent assumptions, risks and uncertainties, both
general and specific, and risks that predictions, forecasts,
projections and other forward-looking information will not be
achieved, including risks relating to satisfaction of the
conditions to, and completion of, the Transaction. Should one or
more of these risks and uncertainties materialize, or should
assumptions described above prove incorrect, Superior's actual
performance and results in future periods may differ materially
from any projections of future performance or results expressed or
implied by such forward-looking information. We caution readers not
to place undue reliance on this information as a number of
important factors could cause the actual results to differ
materially from the beliefs, plans, objectives, expectations and
anticipations, estimates and intentions expressed in such
forward-looking information.
Forward-looking information contained in this news release is
provided for the purpose of providing information about
management's goals, plans and range of expectations for the future
and may not be appropriate for other purposes. Any forward-looking
information is made as of the date hereof and, except as required
by law, Superior does not undertake any obligation to publicly
update or revise such information to reflect new information,
subsequent or otherwise.
Non-GAAP Financial
MeasuresAdjusted Operating Cash FlowAOCF is equal to
cash flow from operating activities as defined by IFRS, adjusted
for changes in non-cash working capital, other expenses, non-cash
interest expense, current income taxes and finance costs. Superior
may deduct or include additional items in its calculation of AOCF;
these items would generally, but not necessarily, be items of a
non-recurring nature. AOCF is the main performance measure used by
management and investors to evaluate Superior’s performance.
Readers are cautioned that it is not a defined performance measure
under IFRS and cannot be assured. Superior’s calculation of AOCF
may differ from similar calculations used by comparable entities.
AOCF represents cash flow generated by Superior that is available
for, but not necessarily limited to, changes in working capital
requirements, investing activities and financing activities of
Superior.
Adjusted EBITDAAdjusted EBITDA represents earnings before
taxes, depreciation, amortization, finance expense and certain
other non-cash expenses, and is used by Superior to assess its
consolidated results and those of its operating segments. EBITDA is
not a defined performance measure under IFRS. Superior’s
calculation of EBITDA may differ from similar calculations used by
comparable entities.
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version on businesswire.com: https://www.businesswire.com/news/home/20180403006480/en/
Superior Plus Corp.Beth Summers, Executive Vice President and
Chief Financial OfficerTel: (416) 340-6015orRob Dorran, Vice
President, Investor Relations and TreasurerTel: (416) 340-6003Toll
Free: 1-866-490-PLUS (7587)investor-relations@superiorplus.com
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