Sunoco LP Announces 4Q and Full Year 2015 Financial and Operating Results
- Distribution increased 7.5 percent versus 3Q 2015, 33.6 percent versus 4Q 2014 levels
- A record 40 new Stripes stores opened in 2015, 10 currently under construction
- Completed dropdown acquisitions have significantly increased beplay88网棋牌 ship's EBITDA and distributable cash flow
- Final dropdown of the remaining wholesale fuel and retail marketing assets from ETP expected to close in March 2016
Conference Call Scheduled for 9:00 a.m. CT (10:00 a.m. ET) on Thursday, February 25
Adjusted EBITDA(1)attributable to partners for the quarter totaled
Distributable cash flow(1)attributable to partners, as adjusted, for the quarter was
Revenue was
Total gross profit was
Net income attributable to partners was
On a weighted-average basis, excluding non-controlling interest, fuel margin for all gallons sold in the fourth quarter increased to
Adjusted EBITDA attributable to partners from the wholesale segment was
As a result of the Susser acquisition, which converted affiliate volumes to retail volumes, motor fuel gallons sold to affiliates decreased 72.5 percent from a year ago to 84.0 million gallons during the fourth quarter of 2015, excluding the non-controlling interest. Affiliate customers for the quarter included Sunoco R&M retail fuel and convenience store sites operated by a subsidiary of ETP. All affiliate gallons are sold to
Other third-party wholesale fuel volumes, excluding non-controlling interest, increased from a year ago by 135.1 percent to 567.7 million gallons related to the acquisition of 31.58 percent of
Adjusted EBITDA attributable to partners related to the retail segment was
Merchandise sales increased by 918.8 percent to
Retail gallons sold by Stripes locations during the fourth quarter totaled 291.4 million gallons. Gross profit on these gallons was
SUN also operates approximately 175 convenience stores and fuel outlets in
SUN's other recent accomplishments include the following:
- In November, SUN announced the dropdown of the remaining wholesale fuel and retail marketing assets from ETP for approximately
$2.226 billion . The transaction is expected to close in March 2016. A significant portion of the consideration for the transaction will be provided by a$2.035 billion term loan dueOctober 2019 , which was fully underwritten byCredit Suisse ,Bank of America Merrill Lynch ,Compass Bank ,Mizuho Bank and Toronto Dominion. The terms of the term loan will substantially mirror SUN's existing$1.5 billion revolving credit facility. - In conjunction with the dropdown, a group of private investors and
Energy Transfer Equity, L.P. (NYSE: ETE) committed to purchase$750 million of SUN common units in an unregistered private placement at a gross price of$31.00 per unit, prior to adjustments. The private placement closed and funded in December, with the exception of ETE's portion, which will fund at the closing of the dropdown transaction. The proceeds of the private placement were used to repay borrowing under SUN's revolving credit facility and for general partnership purposes. - On
December 16 , a wholly owned subsidiary of SUN completed the acquisition of a wholesale fuel distribution business serving theNortheastern United States fromAlta East Inc. for$57 million plus the value of inventory on hand at closing.
SUN's segment results and other supplementary data are provided after the financial tables shown below.
FY 2015 Compared to FY 2014
Revenue for the full year 2015 totaled
Total motor fuel volumes sold to affiliates, excluding the non-controlling interest, decreased by 70.6 percent to 346.4 million gallons as a result of the Susser acquisition, which converted affiliate volumes to retail volumes. Wholesale gallons sold to third parties, excluding the non-controlling interest, increased by 214.2 percent to 2.4 billion gallons. Retail gallons sold increased by 1,595.8 percent to 1.4 billion gallons. On a weighted-average basis, fuel margin for all gallons sold, excluding the non-controlling interest, increased to
Net income attributable to partners for the full year 2015 totaled
Distribution Increase
On
SUN achieved a 1.04 times distribution coverage ratio for the fourth quarter. The coverage ratio was negatively impacted by the private placement completed in December. SUN achieved a 1.37 times coverage ratio for the 12 months ended
Liquidity
At
(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. |
Earnings Conference Call
About
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 beplay88网棋牌 ship's Annual Report on Form 10-K and other documents filed from time to time with the
The information contained in this press release is available on our website atwww.SunocoLP.com
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
Contacts
Investors:
(361) 884-2463,scott.grischow@sunoco.com
Dennard-Lascar Associates
(210) 408-6321,apearson@dennardlascar.com
Media:
(215) 977-6056,jpshields@sunocoinc.com
- Financial Schedules Follow –
Balance Sheets | ||||||||
---|---|---|---|---|---|---|---|---|
Sunoco LP |
||||||||
December 31, 2014 |
December 31, 2015 |
|||||||
(in thousands, except units) |
||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
125,426 |
$ |
61,783 |
||||
Advances from affiliates |
396,376 |
234,509 |
||||||
Accounts receivable, net |
257,065 |
259,993 |
||||||
Receivables from affiliates |
4,941 |
8,074 |
||||||
Inventories, net |
440,294 |
416,504 |
||||||
Other current assets |
60,178 |
33,288 |
||||||
Total current assets |
1,284,280 |
1,014,151 |
||||||
Property and equipment, net |
2,081,126 |
2,397,266 |
||||||
Other assets: |
||||||||
Goodwill |
1,854,436 |
1,821,864 |
||||||
Intangible assets, net |
893,455 |
965,904 |
||||||
Other noncurrent assets |
35,568 |
48,398 |
||||||
Total assets |
$ |
6,148,865 |
$ |
6,247,583 |
||||
Liabilities and equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
383,496 |
$ |
401,231 |
||||
Accounts payable to affiliates |
56,969 |
14,988 |
||||||
Accrued expenses and other current liabilities |
291,047 |
254,298 |
||||||
Current maturities of long-term debt |
13,772 |
5,084 |
||||||
Total current liabilities |
745,284 |
675,601 |
||||||
Revolving line of credit |
683,378 |
450,000 |
||||||
Long-term debt, net |
408,826 |
1,502,531 |
||||||
Deferred tax liability |
378,953 |
431,327 |
||||||
Other noncurrent liabilities |
89,268 |
93,709 |
||||||
Total liabilities |
2,305,709 |
3,153,168 |
||||||
Commitments and contingencies: |
||||||||
beplay88网棋牌 s' capital: |
||||||||
Limited partner interest: |
||||||||
Common unitholders - public (20,036,329 units issued and outstanding as ofDecember 31, 2014 and 49,588,960 units issued and outstanding as ofDecember 31, 2015) |
874,688 |
1,768,890 |
||||||
Common unitholders - affiliated (4,062,848 units issued and outstanding as ofDecember 31, 2014 and 37,776,746 units issued and outstanding as ofDecember 31, 2015) |
27,459 |
1,305,350 |
||||||
Subordinated unitholders - affiliated (10,939,436 units issued and outstanding as of December 31, 2014 and no units issued or outstanding as ofDecember 31, 2015) |
— |
— |
||||||
Class A unitholders - held by subsidiary (no units issued or outstanding as of December 31, 2014 and 11,018,744 units issued and outstanding as of December 31, 2015) |
— |
— |
||||||
Total partners' capital |
902,147 |
3,074,240 |
||||||
Predecessor equity |
2,946,653 |
— |
||||||
Noncontrolling interest |
(5,644) |
20,175 |
||||||
Total equity |
3,843,156 |
3,094,415 |
||||||
Total liabilities and equity |
$ |
6,148,865 |
$ |
6,247,583 |
Statement of Operations and Comprehensive Income | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sunoco LP |
|||||||||||||||||
Predecessor |
Successor |
||||||||||||||||
Year ended December 31, 2013 |
January 1, 2014 through August 31, 2014 |
September 1, 2014 through December 31, 2014 |
Year ended December 31, 2015 |
||||||||||||||
(dollars in thousands, except unit and per unit amounts) |
|||||||||||||||||
Revenues: |
|||||||||||||||||
Retail motor fuel sales |
$ |
— |
$ |
— |
$ |
1,298,804 |
$ |
3,247,545 |
|||||||||
Wholesale motor fuel sales to third parties |
1,502,786 |
1,275,422 |
4,235,415 |
10,104,193 |
|||||||||||||
Wholesale motor fuel sales to affiliates |
2,974,122 |
2,200,394 |
772,338 |
1,832,606 |
|||||||||||||
Merchandise sales |
— |
— |
472,604 |
1,595,674 |
|||||||||||||
Rental income |
10,060 |
11,690 |
21,642 |
71,730 |
|||||||||||||
Other |
5,611 |
4,683 |
24,556 |
83,599 |
|||||||||||||
Total revenues |
4,492,579 |
3,492,189 |
6,825,359 |
16,935,347 |
|||||||||||||
Cost of sales: |
|||||||||||||||||
Retail motor fuel cost of sales |
— |
— |
1,159,974 |
2,916,569 |
|||||||||||||
Wholesale motor fuel cost of sales |
4,419,004 |
3,429,169 |
4,962,227 |
11,486,480 |
|||||||||||||
Merchandise cost of sales |
— |
— |
320,282 |
1,068,933 |
|||||||||||||
Other |
2,611 |
2,339 |
1,792 |
5,201 |
|||||||||||||
Total cost of sales |
4,421,615 |
3,431,508 |
6,444,275 |
15,477,183 |
|||||||||||||
Gross profit |
70,964 |
60,681 |
381,084 |
1,458,164 |
|||||||||||||
Operating expenses: |
|||||||||||||||||
General and administrative |
16,814 |
17,075 |
46,280 |
166,689 |
|||||||||||||
Other operating |
3,187 |
4,964 |
225,905 |
677,207 |
|||||||||||||
Rent |
1,014 |
729 |
28,451 |
92,949 |
|||||||||||||
Loss (gain) on disposal of assets and impairment charge |
324 |
(39) |
(394) |
2,050 |
|||||||||||||
Depreciation, amortization and accretion |
8,687 |
10,457 |
60,335 |
201,019 |
|||||||||||||
Total operating expenses |
30,026 |
33,186 |
360,577 |
1,139,914 |
|||||||||||||
Income (loss) from operations |
40,938 |
27,495 |
20,507 |
318,250 |
|||||||||||||
Interest expense, net |
(3,471) |
(4,767) |
(10,935) |
(87,575) |
|||||||||||||
Income (loss) before income taxes |
37,467 |
22,728 |
9,572 |
230,675 |
|||||||||||||
Income tax expense |
(440) |
(218) |
(69,677) |
(47,070) |
|||||||||||||
Net income (loss) and comprehensive income (loss) |
37,027 |
22,510 |
(60,105) |
183,605 |
|||||||||||||
Less: Net income and comprehensive incomeattributable to noncontrolling interest |
— |
— |
1,043 |
53,783 |
|||||||||||||
Less: Preacquisition income (loss) allocated to general partner |
— |
— |
(95,381) |
42,584 |
|||||||||||||
Net income and comprehensive income attributableto partners |
$ |
37,027 |
$ |
22,510 |
$ |
34,233 |
$ |
87,238 |
|||||||||
Net income per limited partner unit: |
|||||||||||||||||
Common - basic and diluted |
$ |
1.69 |
$ |
1.02 |
$ |
0.85 |
$ |
1.11 |
|||||||||
Subordinated - basic and diluted |
$ |
1.69 |
$ |
1.02 |
$ |
0.85 |
$ |
1.40 |
|||||||||
Weighted average limited partner units outstanding: |
|||||||||||||||||
Common units - public (basic) |
10,884,950 |
10,944,309 |
20,493,065 |
24,550,388 |
|||||||||||||
Common units - public (diluted) |
10,906,794 |
10,969,437 |
20,499,447 |
24,572,126 |
|||||||||||||
Common units - affiliated (basic and diluted) |
79,308 |
79,308 |
79,308 |
15,703,525 |
|||||||||||||
Subordinated units - affiliated (basic and diluted) |
10,939,436 |
10,939,436 |
10,939,436 |
10,010,333 |
|||||||||||||
Cash distribution per unit |
$ |
1.84 |
$ |
1.02 |
$ |
1.15 |
$ |
2.89 |
Key Operating Metrics
The following tables set forth key operating metrics as of and for the periods indicated and have been derived from our audited historical consolidated financial statements. For the year ended December 31, 2014, we have combined the Predecessor Period and the Successor Period and presented the unaudited financial data on a combined basis for comparative purposes. This combination does not comply with generally accepted accounting principles or the rules for unaudited pro forma presentation, but is presented because we believe it provides the most meaningful comparison of our financial results. The impact from "push down" accounting related to the ETP Merger resulted in a
The accompanying footnotes to the following four key operating metrics tables can be found immediately preceeding our pro forma results of operations table.
Key Operating Metrics | |||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year Ended December 31, |
|||||||||||||||||||||||||||||||
2013 |
2014 |
2015 |
|||||||||||||||||||||||||||||
Total |
Wholesale (2) |
Retail (2) |
Total (1) |
Wholesale |
Retail |
Total |
|||||||||||||||||||||||||
(dollars and gallons in thousands, except motor fuel pricing and gross profit per gallon) |
|||||||||||||||||||||||||||||||
Revenues: |
|||||||||||||||||||||||||||||||
Retail motor fuel sales |
$ |
— |
$ |
— |
$ |
1,298,804 |
$ |
1,298,804 |
$ |
— |
$ |
3,247,545 |
$ |
3,247,545 |
|||||||||||||||||
Wholesale motor fuel salesto third parties |
1,502,786 |
5,510,837 |
— |
5,510,837 |
10,104,193 |
— |
10,104,193 |
||||||||||||||||||||||||
Wholesale motor fuel salesto affiliates |
2,974,122 |
2,972,732 |
— |
2,972,732 |
1,832,606 |
— |
1,832,606 |
||||||||||||||||||||||||
Merchandise sales |
— |
— |
472,604 |
472,604 |
— |
1,595,674 |
1,595,674 |
||||||||||||||||||||||||
Rental income |
10,060 |
26,459 |
6,873 |
33,332 |
51,599 |
20,131 |
71,730 |
||||||||||||||||||||||||
Other income |
5,611 |
2,215 |
27,024 |
29,239 |
27,674 |
55,925 |
83,599 |
||||||||||||||||||||||||
Total revenues |
$ |
4,492,579 |
$ |
8,512,243 |
$ |
1,805,305 |
$ |
10,317,548 |
$ |
12,016,072 |
$ |
4,919,275 |
$ |
16,935,347 |
|||||||||||||||||
Gross profit: |
|||||||||||||||||||||||||||||||
Retail motor fuel |
$ |
— |
$ |
— |
$ |
138,830 |
$ |
138,830 |
$ |
— |
$ |
330,976 |
$ |
330,976 |
|||||||||||||||||
Wholesale motor fuel |
57,904 |
92,173 |
— |
92,173 |
450,319 |
— |
450,319 |
||||||||||||||||||||||||
Merchandise |
— |
— |
152,322 |
152,322 |
— |
526,741 |
526,741 |
||||||||||||||||||||||||
Rental and other |
13,060 |
34,002 |
24,438 |
58,440 |
74,339 |
75,789 |
150,128 |
||||||||||||||||||||||||
Total gross profit |
$ |
70,964 |
$ |
126,175 |
$ |
315,590 |
$ |
441,765 |
$ |
524,658 |
$ |
933,506 |
$ |
1,458,164 |
|||||||||||||||||
Net income attributableto limited partners (6) |
$ |
37,027 |
$ |
85,850 |
$ |
(29,107) |
$ |
56,743 |
$ |
38,440 |
$ |
48,798 |
$ |
87,238 |
|||||||||||||||||
Adjusted EBITDAattributable to partners (6,7) |
$ |
51,884 |
$ |
136,646 |
$ |
114,418 |
$ |
251,064 |
$ |
192,099 |
$ |
251,990 |
$ |
444,089 |
|||||||||||||||||
Distributable cash flowattributable to partners, as adjusted (6,7) |
$ |
47,678 |
$ |
98,658 |
$ |
272,232 |
|||||||||||||||||||||||||
Operating Data: |
|||||||||||||||||||||||||||||||
Total motor fuel gallons sold: |
|||||||||||||||||||||||||||||||
Retail |
441,377 |
441,377 |
1,414,326 |
1,414,326 |
|||||||||||||||||||||||||||
Wholesale (3) |
517,775 |
2,180,320 |
2,180,320 |
5,131,417 |
5,131,417 |
||||||||||||||||||||||||||
Wholesale contract affiliated (4) |
1,053,259 |
1,122,664 |
1,122,664 |
1,096,807 |
1,096,807 |
||||||||||||||||||||||||||
Motor fuel gross profitcents per gallon (5): |
|||||||||||||||||||||||||||||||
Retail |
35.2¢ |
35.2¢ |
23.9¢ |
23.9¢ |
|||||||||||||||||||||||||||
Wholesale (3) |
5.1¢ |
10.6¢ |
10.6¢ |
9.4¢ |
9.4¢ |
||||||||||||||||||||||||||
Wholesale contract affiliated (4) |
3.0¢ |
3.3¢ |
3.3¢ |
4.0¢ |
4.0¢ |
||||||||||||||||||||||||||
Volume-weighted averagefor all gallons |
3.7¢ |
11.3¢ |
11.3¢ |
||||||||||||||||||||||||||||
Retail merchandise margin |
32.2% |
33.0% |
|||||||||||||||||||||||||||||
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow: |
|||||||||||||||||||||||||||||||
Year Ended December 31, |
|||||||||||||||||||||||||||||||
2013 |
2014 |
2015 |
|||||||||||||||||||||||||||||
Total |
Wholesale (2) |
Retail (2) |
Total (1) |
Wholesale |
Retail |
Total |
|||||||||||||||||||||||||
(in thousands) |
|||||||||||||||||||||||||||||||
Net income (loss) andcomprehensive income (loss) |
$ |
37,027 |
$ |
(86,571) |
$ |
48,976 |
$ |
(37,595) |
$ |
134,333 |
$ |
49,272 |
$ |
183,605 |
|||||||||||||||||
Depreciation, amortization,and accretion |
8,687 |
34,971 |
35,821 |
70,792 |
67,780 |
133,239 |
201,019 |
||||||||||||||||||||||||
Interest expense, net |
3,471 |
7,362 |
8,340 |
15,702 |
54,296 |
33,279 |
87,575 |
||||||||||||||||||||||||
Income tax expense |
440 |
67,978 |
1,917 |
69,895 |
4,321 |
42,749 |
47,070 |
||||||||||||||||||||||||
EBITDA |
49,625 |
23,740 |
95,054 |
118,794 |
260,730 |
258,539 |
519,269 |
||||||||||||||||||||||||
Non-cash compensation expense |
1,935 |
5,119 |
3,798 |
8,917 |
4,016 |
1,687 |
5,703 |
||||||||||||||||||||||||
Loss (gain) on disposal of assets& impairment charge |
324 |
(309) |
(124) |
(433) |
1,440 |
610 |
2,050 |
||||||||||||||||||||||||
Unrealized (gains) losses oncommodity derivatives |
— |
(1,166) |
— |
(1,166) |
1,848 |
— |
1,848 |
||||||||||||||||||||||||
Inventory fair value adjustments (9) |
— |
176,710 |
16,733 |
193,443 |
77,849 |
6,981 |
84,830 |
||||||||||||||||||||||||
Adjusted EBITDA |
51,884 |
204,094 |
115,461 |
319,555 |
345,883 |
267,817 |
613,700 |
||||||||||||||||||||||||
Adjusted EBITDA attributableto noncontrolling interest |
— |
67,448 |
1,043 |
68,491 |
153,783 |
15,827 |
169,610 |
||||||||||||||||||||||||
Adjusted EBITDA attributableto partners |
51,884 |
136,646 |
114,418 |
251,064 |
192,100 |
251,990 |
444,090 |
||||||||||||||||||||||||
Cash interest expense (8) |
3,090 |
12,029 |
76,213 |
||||||||||||||||||||||||||||
Income tax expense (current) |
302 |
3,275 |
(18,353 |
||||||||||||||||||||||||||||
Maintenance capital expenditures |
814 |
5,196 |
34,559 |
||||||||||||||||||||||||||||
Preacquisition earnings |
— |
138,076 |
85,556 |
||||||||||||||||||||||||||||
Distributable cash flow attributableto partners |
$ |
47,678 |
$ |
92,488 |
$ |
266,115 |
|||||||||||||||||||||||||
Transaction- |
— |
6,170 |
6,118 |
||||||||||||||||||||||||||||
Distributable cash flow attributableto partners, as adjusted |
$ |
47,678 |
$ |
98,658 |
$ |
272,233 |
The following tables set forth key operating metrics as of and for the periods indicated and have been derived from our audited historical consolidated financial statements. For the three months ended December 31, 2014, the figures represent as previously reported results and do not reflect retrospective adjustments for the
Key Operating Metrics Continued | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Three Months Ended December 31, |
||||||||||||||||||
2014 |
2015 |
|||||||||||||||||
Total (10) |
Wholesale |
Retail |
Total |
|||||||||||||||
(dollars and gallons in thousands, except motor fuel pricing and gross profit per gallon) |
||||||||||||||||||
Revenues: |
||||||||||||||||||
Retail motor fuel sales |
$ |
168,000 |
$ |
— |
$ |
709,050 |
$ |
709,050 |
||||||||||
Wholesale motor fuel salesto third parties |
500,215 |
2,082,452 |
— |
2,082,452 |
||||||||||||||
Wholesale motor fuel salesto affiliates |
617,732 |
441,460 |
— |
441,460 |
||||||||||||||
Merchandise sales |
39,277 |
— |
400,367 |
400,367 |
||||||||||||||
Rental income |
17,273 |
256 |
17,529 |
|||||||||||||||
Other income |
16,398 |
9,796 |
13,972 |
23,768 |
||||||||||||||
Total revenues |
$ |
1,341,622 |
$ |
2,550,981 |
$ |
1,123,645 |
$ |
3,674,626 |
||||||||||
Gross profit: |
||||||||||||||||||
Retail motor fuel |
$ |
24,786 |
$ |
— |
$ |
74,174 |
$ |
74,174 |
||||||||||
Wholesale motor fuel |
42,783 |
86,539 |
— |
86,539 |
||||||||||||||
Merchandise |
10,213 |
— |
132,665 |
132,665 |
||||||||||||||
Rental and other |
15,402 |
25,750 |
14,090 |
39,840 |
||||||||||||||
Total gross profit |
$ |
93,184 |
$ |
112,289 |
$ |
220,929 |
$ |
333,218 |
||||||||||
Net income attributableto limited partners (6) |
$ |
30,111 |
$ |
418 |
$ |
7,337 |
$ |
7,755 |
||||||||||
Adjusted EBITDAattributable to partners (6,7,11) |
$ |
65,486 |
$ |
57,924 |
$ |
54,252 |
$ |
112,176 |
||||||||||
Distributable cash flowattributable to partners, as adjusted (6,7) |
$ |
51,114 |
$ |
90,109 |
||||||||||||||
Operating Data: |
||||||||||||||||||
Total motor fuel gallons sold: |
||||||||||||||||||
Retail |
60,247 |
354,028 |
354,028 |
|||||||||||||||
Wholesale (3) |
241,516 |
1,241,019 |
1,241,019 |
|||||||||||||||
Wholesale contract affiliated (4) |
304,872 |
266,006 |
266,006 |
|||||||||||||||
Motor fuel gross profitcents per gallon (5): |
||||||||||||||||||
Retail |
44.5¢ |
22.4¢ |
22.4¢ |
|||||||||||||||
Wholesale (3) |
17.6¢ |
9.8¢ |
9.8¢ |
|||||||||||||||
Wholesale contract affiliated (4) |
3.0¢ |
4.0¢ |
4.0¢ |
|||||||||||||||
Volume-weighted averagefor all gallons |
13.0¢ |
11.4¢ |
||||||||||||||||
Retail merchandise margin |
26.0% |
33.1% |
||||||||||||||||
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow: |
||||||||||||||||||
Three Months Ended December 31, |
||||||||||||||||||
2014 |
2015 |
|||||||||||||||||
Total (10) |
Wholesale |
Retail |
Total |
|||||||||||||||
(in thousands) |
||||||||||||||||||
Net income (loss) andcomprehensive income (loss) |
$ |
30,893 |
$ |
3,142 |
$ |
8,608 |
$ |
11,750 |
||||||||||
Depreciation, amortization,and accretion |
12,502 |
20,017 |
36,875 |
56,892 |
||||||||||||||
Interest expense, net |
6,636 |
23,073 |
6,810 |
29,883 |
||||||||||||||
Income tax expense |
2,114 |
3,349 |
65 |
3,414 |
||||||||||||||
EBITDA |
52,145 |
49,581 |
52,358 |
101,939 |
||||||||||||||
Non-cash compensation expense |
778 |
1,654 |
520 |
2,714 |
||||||||||||||
Loss (gain) on disposal of assets& impairment charge |
2,670 |
371 |
148 |
519 |
||||||||||||||
Unrealized (gains) losses oncommodity derivatives |
(1,226) |
(1,078) |
— |
(1,078) |
||||||||||||||
Inventory fair value adjustments (9) |
11,119 |
45,344 |
5,205 |
50,549 |
||||||||||||||
Adjusted EBITDA |
65,486 |
95,872 |
58,231 |
154,103 |
||||||||||||||
Adjusted EBITDA attributableto noncontrolling interest |
— |
37,948 |
3,979 |
41,927 |
||||||||||||||
Adjusted EBITDA attributableto partners |
65,486 |
57,924 |
54,252 |
112,176 |
||||||||||||||
Cash interest expense (8) |
6,255 |
26,577 |
||||||||||||||||
Income tax expense (current) |
3,003 |
(18,763) |
||||||||||||||||
Maintenance capital expenditures |
4,332 |
15,929 |
||||||||||||||||
Preacquisition earnings (11) |
782 |
— |
||||||||||||||||
Distributable cash flow attributableto partners |
$ |
51,114 |
$ |
88,433 |
||||||||||||||
Transaction-related expenses |
— |
1,676 |
||||||||||||||||
Distributable cash flow attributableto partners, as adjusted |
$ |
51,114 |
$ |
90,109 |
(1) |
Reflects combined results of the Predecessor Period from January 1, 2014 through August 31, 2014, and the Successor Period from September 1, 2014 to December 31, 2014. The impact in the Successor Period from "push down" accounting related to the ETP Merger resulted in a $4.1 million decrease in depreciation expense, offset by a $3.9 million increase in amortization 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 Distribution Contract for January 1, 2014 through August 31, 2014 and the Sunoco Inc. Distribution Contract for all periods presented at set margins as dictated by the agreements. |
(4) |
Reflects transactions pursuant to the Susser and Sunoco Inc. Distribution Contracts at set margins as dictated by agreements. Susser Distribution Contract included during predecessor period only. |
(5) |
Excludes the impact of inventory fair value adjustments consistent with the definition of Adjusted EBITDA. |
(6) |
Excludes the noncontrolling interest results of operations related to our consolidated variable interest entities ("VIEs") 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 to conform the method by which we measure our business to that of ETP's operations, we 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 that 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. |
|
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; |
|
•our management uses them 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, and 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 |
|
as 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. |
|
(8) |
Reflects the partnership's cash interest paid less the cash interest paid on our VIE debt of $9.1 million and $2.1 million during the year ended December 31, 2015, and the three months ended December 31, 2015, respectively. |
(9) |
Due to the change in fuel prices, we recorded a $193.4 million, $84.8 million, $11.1 million and $50.5 million write-down of the value of fuel inventory during the years ended December 31, 2014 and 2015 and the three months ended December 31, 2014 and 2015, respectively. |
(10) |
For the three months ended December 31, 2014, the figures represent as previously reported results and do not reflect retrospective adjustments for the Sunoco LLC and Susser Holdings acquisitions which were accounted for as transactions between entities under common control. Additionally, we began presenting key operating metrics by segment beginning as of January 1, 2015. |
(11) |
Beginning on January 1, 2015, we present Adjusted EBITDA attributable to partners. Previously the impact of noncontrolling interest was adjusted to DCF. |
Pro Forma Results of Operations
We have provided below certain supplemental pro forma information for the year ended
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.
Pro Forma Results of Operations | ||||||||
---|---|---|---|---|---|---|---|---|
Three Months ended December 31, 2015 |
Year ended December 31, 2015 |
|||||||
Pro Forma |
||||||||
(unaudited) |
||||||||
(in thousands except gross profit per gallon) |
||||||||
Gross profit: |
||||||||
Retail gross profit |
$ |
74,174 |
$ |
330,976 |
||||
Wholesale gross profit |
52,332 |
255,181 |
||||||
Total fuel gross profit |
$ |
126,506 |
$ |
586,157 |
||||
Operating Data: |
||||||||
Motor fuel gallons sold: |
||||||||
Retail |
354,028 |
1,414,326 |
||||||
Wholesale |
567,746 |
2,356,325 |
||||||
Wholesale contract affiliated |
84,005 |
346,372 |
||||||
Total fuel gallons |
1,005,779 |
4,117,023 |
||||||
Motor fuel gross profit cents per gallon (1): |
||||||||
Retail |
22.4¢ |
23.9¢ |
||||||
Wholesale |
12.1¢ |
11.5¢ |
||||||
Wholesale contract affiliated |
4.0¢ |
4.0¢ |
||||||
Volume-weighted average for all gallons |
15.1¢ |
15.1¢ |
(1) |
Excludes impact of inventory fair value adjustments consistent with the definition of Adjusted EBITDA. |
Capital Spending
SUN's gross capital expenditures, excluding the non-controlling interest, for the fourth quarter were
We currently expect capital spending for the full year 2016, excluding acquisitions, to be within the following ranges ($ in millions):
Capital Spending | |||
---|---|---|---|
Growth |
Maintenance |
||
Low |
High |
Low |
High |
$390 |
$420 |
$100 |
$110 |
Growth capital spending includes the construction of 35 to 40 new-to-industry sites that SUN anticipates building in 2016.
To view the original version on PR Newswire, visit:https://www.prnewswire.com/news-releases/sunoco-lp-announces-4q-and-full-year-2015-financial-and-operating-results-300225973.html
SOURCE