Susser Petroleum beplay88网棋牌 s LP Reports First Quarter 2014 Results

HOUSTON , May 7, 2014 /PRNewswire/ -- Susser Petroleum beplay88网棋牌 s LP (NYSE: SUSP), a wholesale distributor of motor fuels, today reported financial and operating results for the first quarter ended March 31, 2014 .

Net income for the quarter was $10.1 million , or $0.46 per unit, compared to $8.2 million , or $0.38 per unit, in the first quarter of 2013. Adjusted EBITDA⁽¹⁾totaled $15.7 million and distributable cash flow⁽¹⁾was $14.0 million , versus $11.2 million and $10.4 million , respectively, for the prior-year period.

Revenue for the first quarter totaled $1.2 billion , an 11.6% increase compared to $1.1 billion in the comparable period in 2013. The increase was driven by an 18.1% increase in gallons sold. In the first quarter of 2014, 63.0% of revenues were generated from motor fuel sales to affiliates, 36.5% were from motor fuel sales to other third-parties, and 0.5% came from rental and other income.

Gross profit for the quarter totaled $22.1 million , a 42.2% increase compared to $15.6 million in the first quarter of last year. On a weighted average basis, fuel margin for all gallons sold increased to 4.0 cents per gallon, compared to 3.6 cents per gallon in the prior-year period.

Affiliate customers as of March 31 include 629 Stripes^®and Sac-N-Pac^™convenience stores operated by our parent company, Susser Holdings Corporation (NYSE: SUSS), as well as SUSS' sales of motor fuel under consignment arrangements at approximately 90 independently operated convenience stores. Motor fuel gallons sold to affiliates during the first quarter increased 10.7% versus the prior-year period to 277.8 million gallons. Gross profit on these gallons totaled $8.4 million , or 3.0 cents per gallon, versus $7.4 million , or 3.0 cents per gallon, in the comparable three-month period last year.

Third-party customers of SUSP include approximately 520 independent dealers under long-term fuel supply agreements, 13 independently operated consignment locations and approximately 1,900 other commercial customers. Total gallons sold to third parties increased year-over-year by 34.3% to 155.6 million gallons. Gross profit on these gallons was $8.8 million , or 5.7 cents per gallon, compared to $5.8 million , or 5.0 cents per gallon, in the prior-year period.

"Results from the beplay88网棋牌 ship continued to be robust for the first quarter of 2014, with an 18 percent year-over-year increase in fuel gallons sold and a 42 percent increase in gross profit," said Rocky B. Dewbre , President and Chief Executive Officer. "The year-on-year growth was largely driven by the Gainesville Fuel and Sac-N-Pac/3W Warren Fuels acquisitions, and the growth in Stripes gallons supported by a robust Texas economy. As a result, we are pleased to announce our fourth consecutive increase in our quarterly distribution.

"We're excited about the new opportunities ahead of us that are expected to result from the recently announced transaction in which Susser Holdings Corporation , the owner of our general partner, will be acquired by Energy Transfer beplay88网棋牌 s , L.P. That transaction is expected to close in the third quarter. ETP has announced that it plans to begin dropping down Susser Holdings and its own Sunoco convenience store and fuel distribution assets to SUSP, which is expected to diversify our cash flows and accelerate our growth," Dewbre said. Any future material drop downs will be subject to market conditions and the approval of SUSP's conflicts committee.

New Dealer Update

27 new contracted dealer sites were added in the first quarter including 19 acquired in conjunction with the Sac-N-Pac/3W Warren Fuels Acquisition, and two sites were discontinued for a total of 616 third party dealer and SUSS consignment locations as of March 31. In addition to the 19 acquired dealer sites, Susser expects to add 28 to 45 new wholesale branded dealers in 2014.

Capital Spending and Financing

SUSP completed drop down transactions for seven Stripes convenience stores during the first quarter and two more so far in the second quarter. Since its initial public offering in September 2012 , SUSP has completed the purchase and leaseback of 42 newly built stores for a cumulative cost of $169.6 million .

Including the Stripes store purchases, SUSP's gross capital expenditures for the first quarter were $31.4 million , which included $31.2 million for growth capital and $0.2 million for maintenance capital. At March 31 , SUSP had borrowings against its revolving line of credit of $230.0 million and other long-term debt of $4.1 million . Availability on the revolving credit facility after borrowings and letters of credit commitments, was $159.1 million .

Quarterly Distribution

SUSP announced today that the Board of Directors of its general partner has approved its quarterly distribution for the first quarter of 2014 of $0.5021 per unit. This amount corresponds to $2.01 per unit on an annualized basis and represents a 3.5 percent increase compared to the distribution for the previous quarter. The total distribution amount of approximately $11.0 million is being paid from distributable cash flow of $14.0 million for the quarter and reflects a distribution coverage ratio of 1.27 times. This distribution is 14.8% greater than the $0.4375 per unit paid in May 2013 .

The distribution will be paid on May 30, 2014 to unitholders of record on May 20, 2014 . Immediately prior to the distribution, there are expected to be 21,960,200 units outstanding, including all of the beplay88网棋牌 ship's common and subordinated units.

First Quarter Earnings Conference Call

Susser's management team will hold a conference call today at 10:00 a.m. ET ( 9:00 a.m. CT ) to discuss first quarter 2014 results for both Susser Holdings Corporation and Susser Petroleum beplay88网棋牌 s LP . To participate in the call, dial 480-629-9819 10 minutes early and ask for the Susser conference call. The call will also be accessible live and for later replay via webcast in the Investor Relations section of Susser Holdings' web site atwww.susser.comand Susser Petroleum beplay88网棋牌 s' web site atwww.susserpetroleumpartners.comunder Events and Presentations. A telephone replay will be available through May 14 by calling 303-590-3030 and using the pass code 4680249#.

Houston -based Susser Petroleum beplay88网棋牌 s LP is a publicly traded partnership formed by Susser Holdings Corporation to engage in the primarily fee-based wholesale distribution of motor fuels to Susser Holdings and third parties. Susser Petroleum beplay88网棋牌 s distributes approximately 1.6 billion gallons of motor fuel annually from major oil companies and independent refiners to Susser Holdings' Stripes® and Sac-N-Pac convenience stores, independently operated consignment locations, convenience stores and retail fuel outlets operated by independent operators and other commercial customers in Texas , New Mexico , Oklahoma and Louisiana .

Forward-Looking Statements

This news release contains "forward-looking statements." These statements are based on current plans expectations and the expected timing and impact of Susser Holdings Corporation's acquisition by Energy Transfer beplay88网棋牌 s and related transactions and involve a number of risks and uncertainties that could cause actual results and events to vary materially, including but not limited to: Susser Holdings' business strategy, operations and conflicts of interest with us; our ability to renew or renegotiate our long-term distribution contracts with our customers; changes in the price of and demand for the motor fuel that we distribute; our dependence on two principal suppliers; 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; our ability to make acquisitions; environmental laws and regulations; dangers inherent in the storage of motor fuel; our reliance on SHC for transportation services; reliance of our suppliers to provide trade credit terms to adequately fund our ongoing operations; acts of war and terrorism; dependence on our information technology systems; and other unforeseen factors. For a full discussion of these and other risks and uncertainties, refer to the "Risk Factors" section of the beplay88网棋牌 ship's most recently filed annual report on Form 10-K and subsequent quarterly filings. These forward-looking statements are based on and include our estimates as of the date hereof. Subsequent events and market developments could cause our estimates to change. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if new information becomes available, except as may be required by applicable law.

Qualified Notice

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100 percent of Susser Pertroluem beplay88网棋牌 s' distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Susser Petroleum beplay88网棋牌 s' distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

Financial statements follow

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 following tables present a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:

SOURCE Susser Petroleum beplay88网棋牌 s LP