DALLAS, Aug. 8, 2017 /PRNewswire/ --
- Executed definitive agreement to divest a majority of
company-operated convenience stores to 7-Eleven, Inc. and launched
sales process for remaining company-operated convenience stores in
North and West Texas, New Mexico and Oklahoma
-
- Results of the retail divestitures are presented in
discontinued operations
- Maintained quarterly distribution of 82.55 cents and reported current quarter cash
coverage of 1.53 times
- Generated Net Loss of $222
million, Adjusted EBITDA(1) of
$220 million and Distributable Cash
Flow(1), as adjusted, of $158 million
Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today
announced financial and operating results for the three-month
period ended June 30, 2017.
Revenue totaled $2.4 billion, an
increase of 13.0 percent, compared to $2.1
billion in the second quarter of 2016. The increase was the
result of the average wholesale selling price of fuel being
14 cents per gallon higher than last
year and additional wholesale gallons sold.
Total gross profit declined to $165
million, compared to $227
million in the second quarter of 2016, as a result
of lower wholesale motor fuel gross profits.
Income from continuing operations was $34
million, versus $57 million in
the second quarter of 2016. General and administrative expenses
increased $4 million from the second
quarter of 2016 to $40 million driven
by transaction-related expenses. Other operating expenses
decreased $1 million from the second
quarter of 2016 to $46
million.
Loss from discontinued operations, net of income taxes, was
$256 million including a $320 million charge related to assets held for
sale, versus income from discontinued operations, net of income
taxes, of $15 million in the second
quarter of 2016.
Net loss was $222 million, or
($2.53) per diluted unit, versus
$72 million, or $0.53 per diluted unit, in the second quarter of
2016.
Adjusted EBITDA for the quarter totaled $220 million, compared with $164 million in the second quarter of 2016.
The favorable year-over-year comparison reflects increased motor
fuel gross profit cents per gallon and increased gallons sold.
Distributable Cash Flow, as adjusted, was $158 million, compared to $92 million a year ago. This year over year
increase reflects higher Adjusted EBITDA and decreased maintenance
capital spend partly offset by increased cash interest expense.
On a weighted-average basis, fuel margin for all gallons sold
was 16.2 cents per gallon, compared
to 13.8 cents per gallon in the
second quarter of 2016. The 2.4
cents per gallon increase was primarily attributable to
higher margins in both the retail and wholesale segments.
Net income for the wholesale segment was $5 million compared to $86
million a year ago due to the impact of inventory valuation
adjustments. Adjusted EBITDA was $93
million, versus $80 million in
the second quarter of last year. Total wholesale gallons sold
were 1,374 million, compared to 1,316 million in the second quarter
of 2016, an increase of 4.4 percent as a result of growth in the
Southwest geography and contribution from the Emerge
acquisition. This includes gallons sold to consignment stores
and third-party customers, including independent dealers, fuel
distributors and commercial customers. The Partnership earned
10.1 cents per gallon on these
volumes, compared to 8.8 cents per
gallon a year earlier.
Net loss for the retail segment was $227
million compared to a net loss of $14
million a year ago primarily due to a $320 million charge related to assets held for
sale. Adjusted EBITDA was $127
million, versus $84 million in
the second quarter of last year. Total retail gallons sold
increased by 1.4 percent to 650 million gallons as a result of the
increased gallons sold across SUN's operating geography. The
Partnership earned 29.2 cents per
gallon on these volumes, compared to 24.0
cents per gallon a year earlier.
Total merchandise sales increased by 5.4 percent from a year ago
to $608 million(2),
reflecting the contribution from third party acquisitions and
new-to-industry locations opened during the last 12 months.
Merchandise sales contributed $196
million of gross profit(3) with a retail
merchandise margin of 32.1 percent, a decrease of 0.4 percentage
points from the second quarter of 2016.
Same-store merchandise sales increased by 1.0 percent during the
second quarter, reflecting growth across all of SUN's convenience
store offerings. Same-store gallons decreased by 2.1 percent as a
result of weakness throughout SUN's retail geography, particularly
on the East Coast partly offset by increased same-store gallons
sold in Hawaii. In the Texas
oil producing regions, same-store merchandise sales increased by
8.5 percent, and same-store gallons increased 8.7 percent.
As of June 30, 2017, SUN operated
1,353 convenience stores and retail fuel outlets along the East
Coast, in the Southwest and in Hawaii. Third party wholesale customers and
sites totaled 7,937.
SUN's other recent accomplishments include the following:
- On April 6, SUN announced the
planned divestiture of company-operated convenience stores in the
continental United States.
-
- SUN entered into a definitive asset purchase agreement for the
sale of a majority of its company-operated convenience stores to
7-Eleven, Inc. Total consideration in the transaction is
$3.3 billion in cash plus fuel,
merchandise and other inventories.
- As part of the transaction, SUN will enter into a 15-year
take-or-pay fuel supply agreement with a 7-Eleven, Inc. subsidiary
under which SUN will supply approximately 2.2 billion gallons of
fuel annually.
- Also on April 6, SUN retained JP
Morgan Securities, LLC to manage the marketing process for the
remaining approximately 200 company-operated convenience stores in
North and West Texas, New Mexico and Oklahoma in a separate process.
SUN's segment results and other supplementary data are provided
after the financial tables below.
Distribution
On July 26, 2017 the Board of
Directors of SUN's general partner declared a distribution for the
second quarter of 2017 of $0.8255 per
unit, which corresponds to $3.3020
per unit on an annualized basis. The distribution will be
paid on August 15 to unitholders of
record on August 7.
SUN's distribution coverage ratio for the second quarter was
1.53 times. The distribution coverage ratio on a trailing 12-month
basis was 1.03 times.
Liquidity
At June 30, SUN had borrowings
against its revolving line of credit of $825
million and other long-term debt of $3.6 billion. Availability on the revolving
credit facility after borrowings and letters of credit commitments
was $655 million. In the second
quarter of 2017, SUN did not issue any common units through its
at-the-market equity program. The leverage ratio of debt to
Adjusted EBITDA, calculated in accordance with SUN's credit
agreements, including the revolving credit facility and Term Loan
A, was 5.97 times at the end of the second quarter.
(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)
|
Includes $590 million
in merchandise sales from discontinued operations.
|
(3)
|
Includes $191 million
in merchandise gross profit from discontinued
operations.
|
Earnings Conference Call
Sunoco LP management will hold a conference call on Wednesday, August 9, at 9:30 a.m. CT (10:30 a.m.
ET) to discuss second quarter results and recent
developments. To participate, dial 201-389-0877 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.
Sunoco LP (NYSE: SUN) is a master limited partnership
that operates 1,353 convenience stores and retail fuel sites and
distributes motor fuel to 7,937 convenience stores, independent
dealers, commercial customers and distributors located in 30
states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) --
owns SUN's general partner and incentive distribution rights.
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
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 Sunoco LP's distributions to non-U.S. investors as
being attributable to income that is effectively connected with a
United States trade or business.
Accordingly, Sunoco LP's distributions to non-U.S. investors are
subject to federal income tax withholding at the highest applicable
effective tax rate.
Contacts
Investors:
Scott Grischow, Senior Director –
Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, Senior Analyst –
Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director –
Communications
(469) 646-1758, alyson.gomez@sunoco.com
Jeamy Molina, Senior Manager – PR
& Communications
(469) 646-1776, jeamy.molina@sunoco.com
– Financial Schedules Follow –
SUNOCO
LP
CONSOLIDATED
BALANCE SHEETS
(unaudited)
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
|
(in millions,
except units)
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
97
|
|
|
$
|
99
|
|
Accounts receivable,
net
|
|
398
|
|
|
539
|
|
Receivables from
affiliates
|
|
148
|
|
|
3
|
|
Inventories,
net
|
|
356
|
|
|
385
|
|
Other current
assets
|
|
91
|
|
|
72
|
|
Assets held for
sale
|
|
4,194
|
|
|
291
|
|
Total current
assets
|
|
5,284
|
|
|
1,389
|
|
Property and
equipment, net
|
|
1,155
|
|
|
1,188
|
|
Other
assets:
|
|
|
|
|
Goodwill
|
|
1,032
|
|
|
1,050
|
|
Intangible assets,
net
|
|
786
|
|
|
752
|
|
Other noncurrent
assets
|
|
54
|
|
|
64
|
|
Assets held for
sale
|
|
—
|
|
|
4,258
|
|
Total
assets
|
|
$
|
8,311
|
|
|
$
|
8,701
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
461
|
|
|
$
|
616
|
|
Accounts payable to
affiliates
|
|
169
|
|
|
109
|
|
Advances from
affiliates
|
|
86
|
|
|
87
|
|
Accrued expenses and
other current liabilities
|
|
352
|
|
|
372
|
|
Current maturities of
long-term debt
|
|
5
|
|
|
5
|
|
Liabilities
associated with assets held for sale
|
|
68
|
|
|
—
|
|
Total current
liabilities
|
|
1,141
|
|
|
1,189
|
|
Revolving line of
credit
|
|
825
|
|
|
1,000
|
|
Long-term debt,
net
|
|
3,537
|
|
|
3,509
|
|
Deferred tax
liability
|
|
601
|
|
|
643
|
|
Other noncurrent
liabilities
|
|
106
|
|
|
96
|
|
Liabilities
associated with assets held for sale
|
|
—
|
|
|
68
|
|
Total
liabilities
|
|
6,210
|
|
|
6,505
|
|
Commitments and
contingencies (Note 13)
|
|
|
|
|
Equity:
|
|
|
|
|
Limited
partners:
|
|
|
|
|
Series A Preferred
unitholder - affiliated
(12,000,000 units issued and outstanding as of June
30, 2017 and
no units issued and outstanding as of December
31, 2016)
|
|
300
|
|
|
—
|
|
Common unitholders -
public
(53,718,058 units issued and outstanding as of June
30, 2017 and
52,430,220 units issued and outstanding as of
December 31, 2016)
|
|
1,291
|
|
|
1,467
|
|
Common unitholders -
affiliated
(45,750,826 units issued and outstanding as of June
30, 2017 and
December 31, 2016)
|
|
510
|
|
|
729
|
|
Class C unitholders -
held by subsidiary
(16,410,780 units issued and outstanding as of June
30, 2017 and
December 31, 2016)
|
|
—
|
|
|
—
|
|
Total
equity
|
|
2,101
|
|
|
2,196
|
|
Total liabilities and
equity
|
|
$
|
8,311
|
|
|
$
|
8,701
|
|
SUNOCO
LP
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(unaudited)
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in millions,
except unit and per unit amounts)
|
Revenues:
|
|
|
|
|
|
|
|
Retail motor
fuel
|
$
|
39
|
|
|
$
|
46
|
|
|
$
|
77
|
|
|
$
|
91
|
|
Wholesale motor fuel
sales to third parties
|
2,281
|
|
|
1,997
|
|
|
4,525
|
|
|
3,493
|
|
Wholesale motor fuel
sales to affiliates
|
6
|
|
|
10
|
|
|
28
|
|
|
17
|
|
Merchandise
|
18
|
|
|
17
|
|
|
34
|
|
|
33
|
|
Rental
income
|
22
|
|
|
22
|
|
|
44
|
|
|
43
|
|
Other
|
34
|
|
|
31
|
|
|
67
|
|
|
74
|
|
Total
revenues
|
2,400
|
|
|
2,123
|
|
|
4,775
|
|
|
3,751
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
Retail motor fuel
cost of sales
|
33
|
|
|
43
|
|
|
66
|
|
|
83
|
|
Wholesale motor fuel
cost of sales
|
2,185
|
|
|
1,839
|
|
|
4,328
|
|
|
3,205
|
|
Merchandise cost of
sales
|
13
|
|
|
12
|
|
|
24
|
|
|
23
|
|
Other
|
4
|
|
|
2
|
|
|
8
|
|
|
4
|
|
Total cost of
sales
|
2,235
|
|
|
1,896
|
|
|
4,426
|
|
|
3,315
|
|
Gross
profit
|
165
|
|
|
227
|
|
|
349
|
|
|
436
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
General and
administrative
|
40
|
|
|
36
|
|
|
72
|
|
|
83
|
|
Other
operating
|
46
|
|
|
47
|
|
|
95
|
|
|
85
|
|
Rent
|
12
|
|
|
12
|
|
|
25
|
|
|
24
|
|
Loss (gain) on
disposal of assets
|
3
|
|
|
—
|
|
|
4
|
|
|
(1)
|
|
Depreciation,
amortization and accretion
|
33
|
|
|
28
|
|
|
63
|
|
|
54
|
|
Total operating
expenses
|
134
|
|
|
123
|
|
|
259
|
|
|
245
|
|
Operating
income
|
31
|
|
|
104
|
|
|
90
|
|
|
191
|
|
Interest expense,
net
|
54
|
|
|
44
|
|
|
111
|
|
|
64
|
|
Income from continuing
operations before income taxes
|
(23)
|
|
|
60
|
|
|
(21)
|
|
|
127
|
|
Income tax expense
(benefit)
|
(57)
|
|
|
3
|
|
|
(70)
|
|
|
5
|
|
Income from
continuing operations
|
34
|
|
|
57
|
|
|
49
|
|
|
122
|
|
Income (loss) from
discontinued operations, net of income taxes
|
(256)
|
|
|
15
|
|
|
(270)
|
|
|
12
|
|
Net income (loss)
and comprehensive income (loss)
|
$
|
(222)
|
|
|
$
|
72
|
|
|
$
|
(221)
|
|
|
$
|
134
|
|
Net income (loss)
per limited partner unit - basic:
|
|
|
|
|
|
|
|
Continuing operations
- common units
|
$
|
0.04
|
|
|
$
|
0.38
|
|
|
$
|
(0.05)
|
|
|
$
|
0.88
|
|
Discontinued
operations - common units
|
(2.56)
|
|
|
0.15
|
|
|
(2.72)
|
|
|
0.13
|
|
Net income (loss) -
common units
|
$
|
(2.52)
|
|
|
$
|
0.53
|
|
|
$
|
(2.77)
|
|
|
$
|
1.01
|
|
Net income (loss)
per limited partner unit - diluted:
|
|
|
|
|
|
|
|
Continuing operations
- common units
|
$
|
0.03
|
|
|
$
|
0.38
|
|
|
$
|
(0.05)
|
|
|
$
|
0.88
|
|
Discontinued
operations - common units
|
(2.56)
|
|
|
0.15
|
|
|
(2.72)
|
|
|
0.13
|
|
Net income (loss) -
common units
|
$
|
(2.53)
|
|
|
$
|
0.53
|
|
|
$
|
(2.77)
|
|
|
$
|
1.01
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
Common units - public
(basic)
|
53,715,598
|
|
|
49,588,960
|
|
|
53,289,557
|
|
|
49,588,960
|
|
Common units - public
(diluted)
|
54,149,181
|
|
|
49,644,916
|
|
|
53,555,219
|
|
|
49,644,916
|
|
Common units -
affiliated (basic and diluted)
|
45,750,826
|
|
|
45,750,826
|
|
|
45,750,826
|
|
|
41,807,600
|
|
|
|
|
|
|
|
|
|
Cash distribution
per unit
|
$
|
0.8255
|
|
|
$
|
0.8255
|
|
|
$
|
1.6510
|
|
|
$
|
1.6428
|
|
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. We operate our business in two primary operating
divisions, wholesale and retail, both of which are included as
reportable segments.
Key operating metrics set forth below are presented as of and
for the three months ended June 30,
2017 and 2016 and have been derived from our historical
consolidated financial statements.
The accompanying footnotes to the following two key operating
metrics tables can be found immediately preceding our capital
spending discussion.
|
For the Three
Months Ended June 30,
|
|
2017
|
|
|
2016
|
|
Wholesale
|
|
Retail
|
|
Total
|
|
|
Wholesale
|
|
Retail
|
|
Total
|
|
(dollars and
gallons in millions, except motor fuel gross profit per
gallon)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor
fuel
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
39
|
|
|
|
$
|
—
|
|
|
$
|
46
|
|
|
$
|
46
|
|
Wholesale motor fuel
sales to third parties
|
2,281
|
|
|
—
|
|
|
2,281
|
|
|
|
1,997
|
|
|
—
|
|
|
1,997
|
|
Wholesale motor fuel
sale to affiliates
|
6
|
|
|
—
|
|
|
6
|
|
|
|
10
|
|
|
—
|
|
|
10
|
|
Merchandise
|
—
|
|
|
18
|
|
|
18
|
|
|
|
—
|
|
|
17
|
|
|
17
|
|
Rental
income
|
19
|
|
|
3
|
|
|
22
|
|
|
|
19
|
|
|
3
|
|
|
22
|
|
Other
|
12
|
|
|
22
|
|
|
34
|
|
|
|
6
|
|
|
25
|
|
|
31
|
|
Total
revenues
|
$
|
2,318
|
|
|
$
|
82
|
|
|
$
|
2,400
|
|
|
|
$
|
2,032
|
|
|
$
|
91
|
|
|
$
|
2,123
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor
fuel
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Wholesale motor
fuel
|
102
|
|
|
—
|
|
|
102
|
|
|
|
168
|
|
|
—
|
|
|
168
|
|
Merchandise
|
—
|
|
|
5
|
|
|
5
|
|
|
|
—
|
|
|
5
|
|
|
5
|
|
Rental and
other
|
27
|
|
|
25
|
|
|
52
|
|
|
|
24
|
|
|
27
|
|
|
51
|
|
Total gross
profit
|
$
|
129
|
|
|
$
|
36
|
|
|
$
|
165
|
|
|
|
$
|
192
|
|
|
$
|
35
|
|
|
$
|
227
|
|
Net income (loss) and
comprehensive income (loss) from continuing operations
|
5
|
|
|
29
|
|
|
34
|
|
|
|
86
|
|
|
(29)
|
|
|
57
|
|
Net income (loss) and
comprehensive income (loss) from discontinued operations
|
—
|
|
|
(256)
|
|
|
(256)
|
|
|
|
—
|
|
|
15
|
|
|
15
|
|
Net income (loss) and
comprehensive income (loss)
|
$
|
5
|
|
|
$
|
(227)
|
|
|
$
|
(222)
|
|
|
|
$
|
86
|
|
|
$
|
(14)
|
|
|
$
|
72
|
|
Adjusted EBITDA
(2)
|
$
|
93
|
|
|
$
|
127
|
|
|
$
|
220
|
|
|
|
$
|
80
|
|
|
$
|
84
|
|
|
$
|
164
|
|
Distributable cash
flow, as adjusted (2)
|
|
|
|
|
$
|
158
|
|
|
|
|
|
|
|
$
|
92
|
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total motor fuel
gallons sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail (3)
|
|
|
650
|
|
|
650
|
|
|
|
|
|
641
|
|
|
641
|
|
Wholesale
(3)
|
1,374
|
|
|
|
|
1,374
|
|
|
|
1,316
|
|
|
|
|
1,316
|
|
Motor fuel gross profit
cents per gallon (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail (3)
|
|
|
29.2
|
¢
|
|
29.2
|
¢
|
|
|
|
|
24.0
|
¢
|
|
24.0
|
¢
|
Wholesale
(3)
|
10.1
|
¢
|
|
|
|
10.1
|
¢
|
|
|
8.8
|
¢
|
|
|
|
8.8
|
¢
|
Volume-weighted average
for all gallons (3)
|
|
|
|
|
16.2
|
¢
|
|
|
|
|
|
|
13.8
|
¢
|
Retail merchandise
margin (3)
|
|
|
32.1
|
%
|
|
|
|
|
|
|
32.5%
|
|
|
The following table presents a reconciliation of net income to
EBITDA, Adjusted EBITDA and distributable cash flow for the three
months ended June 30, 2017 and
2016:
|
For the Three
Months Ended June 30,
|
|
2017
|
|
|
2016
|
|
Wholesale
|
|
Retail
|
|
Total
|
|
|
Wholesale
|
|
Retail
|
|
Total
|
|
(in
millions)
|
Net income (loss)
and comprehensive income (loss)
|
$
|
5
|
|
|
$
|
(227)
|
|
|
$
|
(222)
|
|
|
|
$
|
86
|
|
|
$
|
(14)
|
|
|
$
|
72
|
|
Depreciation,
amortization and accretion (3)
|
37
|
|
|
2
|
|
|
39
|
|
|
|
18
|
|
|
61
|
|
|
79
|
|
Interest expense, net
(3)
|
14
|
|
|
44
|
|
|
58
|
|
|
|
17
|
|
|
34
|
|
|
51
|
|
Income tax expense
(benefit) (3)
|
(1)
|
|
|
(22)
|
|
|
(23)
|
|
|
|
—
|
|
|
1
|
|
|
1
|
|
EBITDA
|
$
|
55
|
|
|
$
|
(203)
|
|
|
$
|
(148)
|
|
|
|
$
|
121
|
|
|
$
|
82
|
|
|
$
|
203
|
|
Non-cash compensation
expense (3)
|
1
|
|
|
4
|
|
|
5
|
|
|
|
2
|
|
|
1
|
|
|
3
|
|
Loss on disposal of
assets and impairment charge (3)
|
2
|
|
|
324
|
|
|
326
|
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Unrealized gain on
commodity derivatives (3)
|
5
|
|
|
—
|
|
|
5
|
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Inventory adjustments
(3)
|
30
|
|
|
2
|
|
|
32
|
|
|
|
(49)
|
|
|
(1)
|
|
|
(50)
|
|
Adjusted
EBITDA
|
$
|
93
|
|
|
$
|
127
|
|
|
$
|
220
|
|
|
|
$
|
80
|
|
|
$
|
84
|
|
|
$
|
164
|
|
Cash interest expense
(3)
|
|
|
|
|
53
|
|
|
|
|
|
|
|
48
|
|
Income tax expense
(current) (3)
|
|
|
|
|
2
|
|
|
|
|
|
|
|
—
|
|
Maintenance capital
expenditures (3)
|
|
|
|
|
7
|
|
|
|
|
|
|
|
24
|
|
Distributable cash
flow
|
|
|
|
|
$
|
158
|
|
|
|
|
|
|
|
$
|
92
|
|
Transaction-related
expenses (3)
|
|
|
|
|
8
|
|
|
|
|
|
|
|
—
|
|
Series A Preferred
distribution
|
|
|
|
|
(8)
|
|
|
|
|
|
|
|
—
|
|
Distributable cash
flow, as adjusted
|
|
|
|
|
$
|
158
|
|
|
|
|
|
|
|
$
|
92
|
|
|
_______________________________
|
(1)
|
Excludes the impact
of inventory fair value adjustments consistent with the definition
of Adjusted EBITDA.
|
(2)
|
EBITDA is defined as
earnings before net interest expense, income taxes, depreciation,
amortization and accretion expense. Adjusted EBITDA further adjusts
EBITDA to reflect certain other non-recurring and non-cash items.
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 long-term debt that is paid on a
semi-annual basis, Series A Preferred distribution, 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.
|
(3)
|
Includes amounts from
discontinued operations.
|
Capital Spending
SUN's gross capital expenditures for the second quarter were
$33 million, which included
$26 million for growth capital and
$7 million for maintenance
capital.
Excluding acquisitions, SUN expects to spend approximately
$150 million on growth capital and
approximately $80 million on
maintenance capital for the full year 2017.
Growth capital spending includes the rebuilding of locations SUN
is operating on the Indiana Toll Road.
View original content with
multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-second-quarter-financial-and-operating-results-300501590.html
SOURCE Sunoco LP