Sunoco LP Announces Second Quarter Financial and Operating Results

(1)

Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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, as adjusted, and a reconciliation to net income.

(2)

Excluding the one-time expense of approximately $8 million this quarter, SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with SUN's credit facility, was 4.16 times at the end of the second quarter.

Assets

Current assets:

Cash and cash equivalents

Accounts receivable, net

Receivables from affiliates

Inventories, net

Other current assets

Total current assets

Property and equipment

Accumulated depreciation

Property and equipment, net

Other assets:

Lease right-of-use assets, net

Goodwill

Intangible assets

Accumulated amortization

Intangible assets, net

Other non-current assets

Total assets

Liabilities and equity

Current liabilities:

Accounts payable

Accounts payable to affiliates

Accrued expenses and other current liabilities

Operating lease current liabilities

Current maturities of long-term debt

Total current liabilities

Operating lease non-current liabilities

Revolving line of credit

Long-term debt, net

Advances from affiliates

Deferred tax liability

Other non-current liabilities

Total liabilities

Commitments and contingencies

Equity:

Limited partners:

Common unitholders

(82,749,333 units issued and outstanding as of June 30, 2019 and 82,665,057 units issued and outstanding as of December 31, 2018)

Class C unitholders - held by subsidiaries

(16,410,780 units issued and outstanding as of June 30, 2019 and December 31, 2018)

Total equity

Total liabilities and equity

Revenues:

Motor fuel sales

Non motor fuel sales

Lease income

Total revenues

Cost of sales and operating expenses:

Cost of sales

General and administrative

Other operating

Lease expense

Loss on disposal of assets and impairment charges

Depreciation, amortization and accretion

Total cost of sales and operating expenses

Operating income

Other expenses:

Interest expense, net

Loss on extinguishment of debt and other, net

Income from continuing operations before income taxes

Income tax expense (benefit)

Income from continuing operations

Loss from discontinued operations, net of income taxes

Net income (loss) and comprehensive income (loss)

Net income (loss) per common unit - basic:

Continuing operations - common units

Discontinued operations - common units

Net income (loss) - common units

Net income (loss) per common unit - diluted:

Continuing operations - common units

Discontinued operations - common units

Net income (loss) - common units

Weighted average limited partner units outstanding:

Common units - basic

Common units - diluted

Cash distributions per unit

Revenues:

Motor fuel sales

Non motor fuel sales

Lease income

Total revenues

Gross profit (1):

Motor fuel sales

Non motor fuel sales

Lease

Total gross profit

Income (loss) from continuing operations

Loss from discontinued operations, net of taxes

Net income (loss) and comprehensive income (loss)

Adjusted EBITDA (2)

Distributable Cash Flow, as adjusted (2)

Operating Data:

Motor fuel gallons sold

Motor fuel gross profit cents per gallon (3)

¢

¢

Segment Adjusted EBITDA

Fuel distribution and marketing

All other

Total

Depreciation, amortization and accretion

Interest expense, net

Non-cash compensation expense

Loss on disposal of assets and impairment charges (4)

Loss on extinguishment of debt and other, net

Unrealized loss on commodity derivatives

Inventory adjustments

Other non-cash adjustments

Income before income tax (expense) benefit (4)

Income tax (expense) benefit (4)

Net income and comprehensive income

Adjusted EBITDA

Cash interest expense

Current income tax expense (benefit) (4)

Transaction-related income taxes

Maintenance capital expenditures

Distributable Cash Flow

Transaction-related expenses (4)

Distributable Cash Flow, as adjusted

Distributions to beplay88网棋牌 s:

Limited beplay88网棋牌 s

General beplay88网棋牌

Total distributions to be paid to partners

Common Units outstanding – end of period

Excludes depreciation, amortization and accretion.

Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss on disposal of assets and non-cash impairment charges. We define Distributable Cash Flow, as adjusted, as Adjusted EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, Series A Preferred distribution, current income tax expense, maintenance capital expenditures and other non-cash adjustments.

We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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, as adjusted, 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.

Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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. Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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 Adjusted EBITDA does not reflect cash requirements for such replacements; and

as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not be comparable to similarly titled measures of other companies.

Includes other non-cash adjustments and excludes the impact of inventory adjustments consistent with the definition of Adjusted EBITDA.

Includes amounts from discontinued operations for the three months ended June 30, 2018.

The distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to partners of Sunoco LP in respect of such a period.