DALLAS, Feb. 19, 2020 /PRNewswire/ -- Sunoco LP (NYSE:
SUN) ("SUN" or the "Partnership") today reported financial and
operating results for the three- and twelve-month periods ended
December 31, 2019.
For the three months ended December 31,
2019, net income was $83
million versus a net loss of $72
million in the fourth quarter of 2018.
Adjusted EBITDA(1) for the quarter totaled
$168 million compared with
$180 million in the fourth quarter of
2018.
Distributable Cash Flow, as adjusted(1), for the
quarter was $120 million, compared to
$114 million a year ago.
For the twelve months ended December 31,
2019, net income was $313
million versus a net loss of $207
million in 2018.
Adjusted EBITDA(1) for the full year 2019 totaled
$665 million, up 4% from $638 million a year ago. This year-over-year
increase reflects a 4% increase in gallons to a record high 8.2
billion, an increase in lease gross profit and a 13% decline in
operating expenses(2).
Distributable Cash Flow, as adjusted(1), for 2019 was
$453 million, compared to
$455 million a year ago.
Recent Accomplishments and Other Developments
- Sold 2.1 billion gallons in the fourth quarter, up 3% from the
fourth quarter of 2018. For the full year 2019, SUN sold a record
8.2 billion gallons, up 4% from a year ago. On a weighted-average
basis, fuel margin for all gallons sold was 9.9 cents per gallon for the fourth quarter and
10.1 cents per gallon for the full
year 2019.
- Reported current quarter cash coverage of 1.39 times and
trailing twelve months coverage of 1.32 times. SUN's leverage ratio
of net debt to Adjusted EBITDA, calculated in accordance with its
credit facility, was 4.61 times at the end of the fourth
quarter.
- Remained cost disciplined, with operating
expenses(2) of $501
million for the full year 2019 and $119 million in the fourth quarter, down 13% and
20% year over year, respectively.
Distribution
On January 27, 2020, the Board of
Directors of SUN's general partner declared a distribution for the
fourth quarter of 2019 of $0.8255 per
unit, which corresponds to $3.3020
per unit on an annualized basis. The distribution will be paid on
February 19, 2020 to common
unitholders of record on February 7,
2020.
Liquidity
At December 31, 2019, SUN had
borrowings of $162 million against
its revolving line of credit and other long-term debt of
$2.9 billion.
Capital Spending and Other Investments
SUN's gross capital expenditures for the fourth quarter were
$45 million, which included
$28 million for growth capital and
$17 million for maintenance
capital.
SUN spent $116 million on growth
capital for the full year 2019, including $8 million of growth
capital toward the J.C. Nolan joint venture with Energy
Transfer. With an additional $45
million investment on the J.C. Nolan joint venture, SUN's
total investment in 2019 was $161
million.
SUN spent $40 million on
maintenance capital for the full year 2019.
SUN's segment results and other supplementary data are provided
after the financial tables below.
(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)
|
Operating expenses
include general and administrative, other operating and lease
expenses.
|
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, February 20, at 8:00 a.m. CT (9:00 a.m.
ET) to discuss results and recent developments. To
participate, dial 877-407-6184 (toll free) or
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 with core operations that include the distribution of
motor fuel to approximately 10,000 convenience stores, independent
dealers, commercial customers and distributors located in more than
30 states as well as refined product transportation and
terminalling assets. SUN's general partner is owned by Energy
Transfer Operating, L.P., a wholly owned subsidiary of Energy
Transfer LP (NYSE: ET).
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, Vice President – Investor Relations and
Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager –
Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alexis Daniel,
Manager – Communications
(214) 981-0739, alexis.daniel@sunoco.com
– Financial Schedules Follow –
SUNOCO
LP CONSOLIDATED BALANCE
SHEETS (unaudited)
|
|
|
December 31,
2019
|
|
December 31,
2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
21
|
|
|
$
|
56
|
|
Accounts receivable,
net
|
399
|
|
|
374
|
|
Receivables from
affiliates
|
12
|
|
|
37
|
|
Inventories,
net
|
419
|
|
|
374
|
|
Other current
assets
|
73
|
|
|
64
|
|
Total current
assets
|
924
|
|
|
905
|
|
|
|
|
|
Property and
equipment
|
2,134
|
|
|
2,133
|
|
Accumulated
depreciation
|
(692)
|
|
|
(587)
|
|
Property and
equipment, net
|
1,442
|
|
|
1,546
|
|
Other
assets:
|
|
|
|
Finance lease
right-of-use assets, net
|
29
|
|
|
—
|
|
Operating lease
right-of-use assets, net
|
533
|
|
|
—
|
|
Goodwill
|
1,555
|
|
|
1,559
|
|
|
|
|
|
Intangible assets,
net
|
646
|
|
|
708
|
|
Other noncurrent
assets
|
188
|
|
|
161
|
|
Investment in
unconsolidated affiliate
|
121
|
|
|
—
|
|
Total
assets
|
$
|
5,438
|
|
|
$
|
4,879
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
445
|
|
|
$
|
412
|
|
Accounts payable to
affiliates
|
49
|
|
|
149
|
|
Accrued expenses and
other current liabilities
|
219
|
|
|
299
|
|
Operating lease
current liabilities
|
20
|
|
|
—
|
|
Current maturities of
long-term debt
|
11
|
|
|
5
|
|
Total current
liabilities
|
744
|
|
|
865
|
|
Operating lease
non-current liabilities
|
530
|
|
|
—
|
|
Revolving line of
credit
|
162
|
|
|
700
|
|
Long-term debt,
net
|
2,898
|
|
|
2,280
|
|
Advances from
affiliates
|
140
|
|
|
24
|
|
Deferred tax
liability
|
109
|
|
|
103
|
|
Other noncurrent
liabilities
|
97
|
|
|
123
|
|
Total
liabilities
|
4,680
|
|
|
4,095
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Limited
partners:
|
|
|
|
Common
unitholders
(82,985,941 units issued and outstanding as of
December 31, 2019 and
82,665,057 units issued and outstanding as of December
31, 2018)
|
758
|
|
|
784
|
|
Class C unitholders -
held by subsidiary
(16,410,780 units issued and outstanding as of
December 31, 2019 and
December 31, 2018)
|
—
|
|
|
—
|
|
Total
equity
|
758
|
|
|
784
|
|
Total liabilities and
equity
|
$
|
5,438
|
|
|
$
|
4,879
|
|
SUNOCO
LP CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) (unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(dollars in
millions, except unit and per unit amounts)
|
Revenues:
|
|
|
|
|
|
|
|
Motor fuel
sales
|
$
|
4,002
|
|
|
$
|
3,784
|
|
|
$
|
16,176
|
|
|
$
|
16,504
|
|
Non motor fuel
sales
|
61
|
|
|
54
|
|
|
278
|
|
|
360
|
|
Lease
income
|
35
|
|
|
39
|
|
|
142
|
|
|
130
|
|
Total
revenues
|
4,098
|
|
|
3,877
|
|
|
16,596
|
|
|
16,994
|
|
Cost of sales and
operating expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
3,813
|
|
|
3,694
|
|
|
15,380
|
|
|
15,872
|
|
General and
administrative
|
35
|
|
|
38
|
|
|
136
|
|
|
141
|
|
Other
operating
|
68
|
|
|
93
|
|
|
304
|
|
|
363
|
|
Lease
expense
|
16
|
|
|
18
|
|
|
61
|
|
|
72
|
|
Loss on disposal of
assets and impairment charges
|
22
|
|
|
22
|
|
|
68
|
|
|
19
|
|
Depreciation,
amortization and accretion
|
46
|
|
|
50
|
|
|
183
|
|
|
182
|
|
Total cost of sales
and operating expenses
|
4,000
|
|
|
3,915
|
|
|
16,132
|
|
|
16,649
|
|
Operating income
(loss)
|
98
|
|
|
(38)
|
|
|
464
|
|
|
345
|
|
Other expenses
(income):
|
|
|
|
|
|
|
|
Interest expense,
net
|
43
|
|
|
39
|
|
|
173
|
|
|
144
|
|
Other expense
(income), net
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
Equity in earnings of
unconsolidated affiliate
|
(2)
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
Loss on
extinguishment of debt and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
109
|
|
Income (loss) from
continuing operations before income taxes
|
57
|
|
|
(77)
|
|
|
296
|
|
|
92
|
|
Income tax expense
(benefit)
|
(26)
|
|
|
(5)
|
|
|
(17)
|
|
|
34
|
|
Income (loss) from
continuing operations
|
83
|
|
|
(72)
|
|
|
313
|
|
|
58
|
|
Loss from
discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(265)
|
|
Net income (loss)
and comprehensive income (loss)
|
$
|
83
|
|
|
$
|
(72)
|
|
|
$
|
313
|
|
|
$
|
(207)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common unit - basic:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.76
|
|
|
$
|
(1.11)
|
|
|
$
|
2.84
|
|
|
$
|
(0.25)
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.14)
|
|
Net income
(loss)
|
$
|
0.76
|
|
|
$
|
(1.11)
|
|
|
$
|
2.84
|
|
|
$
|
(3.39)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common unit - diluted:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.75
|
|
|
$
|
(1.11)
|
|
|
$
|
2.82
|
|
|
$
|
(0.25)
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.14)
|
|
Net income
(loss)
|
$
|
0.75
|
|
|
$
|
(1.11)
|
|
|
$
|
2.82
|
|
|
$
|
(3.39)
|
|
|
|
|
|
|
|
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
Common units -
basic
|
82,813,411
|
|
|
82,543,312
|
|
|
82,755,520
|
|
|
84,299,893
|
|
Common units -
diluted
|
83,713,959
|
|
|
83,226,399
|
|
|
83,551,962
|
|
|
84,820,570
|
|
|
|
|
|
|
|
|
|
Cash distribution
per unit
|
$
|
0.8255
|
|
|
$
|
0.8255
|
|
|
$
|
3.3020
|
|
|
$
|
3.3020
|
|
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. Our financial statements reflect two reportable
segments, Fuel Distribution and Marketing and All Other.
The key operating metrics by segment and accompanying footnotes
set forth below are presented for the three months and years ended
December 31, 2019 and 2018 and have
been derived from our historical consolidated financial
statements.
|
|
For the Three
Months Ended December 31,
|
|
|
2019
|
|
|
2018
|
|
|
Fuel
Distribution
and
Marketing
|
|
All
Other
|
|
Total
|
|
|
Fuel
Distribution
and
Marketing
|
|
All
Other
|
|
Total
|
|
|
(dollars and gallons
in millions, except gross profit per gallon)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motor fuel
sales
|
|
$
|
3,846
|
|
|
$
|
156
|
|
|
$
|
4,002
|
|
|
|
$
|
3,606
|
|
|
$
|
178
|
|
|
$
|
3,784
|
|
Non motor fuel
sales
|
|
13
|
|
|
48
|
|
|
61
|
|
|
|
7
|
|
|
47
|
|
|
54
|
|
Lease
income
|
|
37
|
|
|
(2)
|
|
|
35
|
|
|
|
36
|
|
|
3
|
|
|
39
|
|
Total
revenues
|
|
$
|
3,896
|
|
|
$
|
202
|
|
|
$
|
4,098
|
|
|
|
$
|
3,649
|
|
|
$
|
228
|
|
|
$
|
3,877
|
|
Gross profit
(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motor fuel
sales
|
|
$
|
193
|
|
|
$
|
20
|
|
|
$
|
213
|
|
|
|
$
|
86
|
|
|
$
|
31
|
|
|
$
|
117
|
|
Non motor fuel
sales
|
|
13
|
|
|
24
|
|
|
37
|
|
|
|
5
|
|
|
22
|
|
|
27
|
|
Lease
|
|
37
|
|
|
(2)
|
|
|
35
|
|
|
|
36
|
|
|
3
|
|
|
39
|
|
Total gross
profit
|
|
$
|
243
|
|
|
$
|
42
|
|
|
$
|
285
|
|
|
|
$
|
127
|
|
|
$
|
56
|
|
|
$
|
183
|
|
Net income (loss) and
comprehensive income (loss) from continuing operations
|
|
57
|
|
|
26
|
|
|
83
|
|
|
|
(52)
|
|
|
(20)
|
|
|
(72)
|
|
Loss from
discontinued operations, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income (loss)
and comprehensive income (loss)
|
|
$
|
57
|
|
|
$
|
26
|
|
|
$
|
83
|
|
|
|
$
|
(52)
|
|
|
$
|
(20)
|
|
|
$
|
(72)
|
|
Adjusted EBITDA
(2)
|
|
$
|
147
|
|
|
$
|
21
|
|
|
$
|
168
|
|
|
|
$
|
159
|
|
|
$
|
21
|
|
|
$
|
180
|
|
Operating
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motor fuel gallons
sold (3)
|
|
|
|
|
|
2,087
|
|
|
|
|
|
|
|
2,021
|
|
Motor fuel gross
profit cents per gallon (3) (4)
|
|
|
|
|
|
9.9
|
¢
|
|
|
|
|
|
|
12.4
|
¢
|
|
|
Year Ended
December 31,
|
|
|
2019
|
|
|
2018
|
|
|
Fuel
Distribution
and
Marketing
|
|
All
Other
|
|
Total
|
|
|
Fuel
Distribution
and
Marketing
|
|
All
Other
|
|
Total
|
|
|
(dollars and gallons
in millions, except gross profit per gallon)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motor fuel
sales
|
|
$
|
15,522
|
|
|
$
|
654
|
|
|
$
|
16,176
|
|
|
|
$
|
15,466
|
|
|
$
|
1,038
|
|
|
$
|
16,504
|
|
Non motor fuel
sales
|
|
62
|
|
|
216
|
|
|
278
|
|
|
|
48
|
|
|
312
|
|
|
360
|
|
Lease
income
|
|
131
|
|
|
11
|
|
|
142
|
|
|
|
118
|
|
|
12
|
|
|
130
|
|
Total
revenues
|
|
$
|
15,715
|
|
|
$
|
881
|
|
|
$
|
16,596
|
|
|
|
$
|
15,632
|
|
|
$
|
1,362
|
|
|
$
|
16,994
|
|
Gross profit
(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motor fuel
sales
|
|
$
|
817
|
|
|
$
|
89
|
|
|
$
|
906
|
|
|
|
$
|
673
|
|
|
$
|
123
|
|
|
$
|
796
|
|
Non motor fuel
sales
|
|
53
|
|
|
115
|
|
|
168
|
|
|
|
40
|
|
|
156
|
|
|
196
|
|
Lease
|
|
131
|
|
|
11
|
|
|
142
|
|
|
|
118
|
|
|
12
|
|
|
130
|
|
Total gross
profit
|
|
$
|
1,001
|
|
|
$
|
215
|
|
|
$
|
1,216
|
|
|
|
$
|
831
|
|
|
$
|
291
|
|
|
$
|
1,122
|
|
Net income (loss) and
comprehensive income (loss) from continuing operations
|
|
290
|
|
|
23
|
|
|
313
|
|
|
|
80
|
|
|
(22)
|
|
|
58
|
|
Loss from
discontinued operations, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(265)
|
|
|
(265)
|
|
Net income (loss)
and comprehensive income (loss)
|
|
$
|
290
|
|
|
$
|
23
|
|
|
$
|
313
|
|
|
|
$
|
80
|
|
|
$
|
(287)
|
|
|
$
|
(207)
|
|
Adjusted EBITDA
(2)
|
|
$
|
545
|
|
|
$
|
120
|
|
|
$
|
665
|
|
|
|
$
|
554
|
|
|
$
|
84
|
|
|
$
|
638
|
|
Operating
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motor fuel gallons
sold (3)
|
|
|
|
|
|
8,193
|
|
|
|
|
|
|
|
7,859
|
|
Motor fuel gross
profit cents per gallon (3) (4)
|
|
|
|
|
|
10.1
|
¢
|
|
|
|
|
|
|
11.4
|
¢
|
The following table presents a reconciliation of Adjusted EBITDA
to net income and Adjusted EBITDA to Distributable Cash Flow, as
adjusted, for the three months and years ended December 31, 2019 and 2018:
|
|
Three Months
Ended
December 31,
|
|
|
Year
Ended
December
31,
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
(in
millions)
|
|
|
(in
millions)
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
Fuel Distribution and
Marketing
|
|
$
|
147
|
|
|
$
|
159
|
|
|
|
$
|
545
|
|
|
$
|
554
|
|
All Other
|
|
21
|
|
|
21
|
|
|
|
120
|
|
|
84
|
|
Total Adjusted
EBITDA
|
|
168
|
|
|
180
|
|
|
|
665
|
|
|
638
|
|
Depreciation,
amortization and accretion
|
|
(46)
|
|
|
(50)
|
|
|
|
(183)
|
|
|
(182)
|
|
Interest expense, net
(3)
|
|
(43)
|
|
|
(39)
|
|
|
|
(173)
|
|
|
(146)
|
|
Non-cash unit-based
compensation expense (3)
|
|
(3)
|
|
|
(2)
|
|
|
|
(13)
|
|
|
(12)
|
|
Loss on disposal of
assets and impairment charges (3)
|
|
(22)
|
|
|
(22)
|
|
|
|
(68)
|
|
|
(80)
|
|
Loss on
extinguishment of debt and other, net
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(129)
|
|
Unrealized gain
(loss) on commodity derivatives (3)
|
|
1
|
|
|
(5)
|
|
|
|
5
|
|
|
(6)
|
|
Inventory adjustments
(3)
|
|
8
|
|
|
(135)
|
|
|
|
79
|
|
|
(84)
|
|
Equity in earnings of
unconsolidated affiliate
|
|
2
|
|
|
—
|
|
|
|
2
|
|
|
—
|
|
Adjusted EBITDA
related to unconsolidated affiliate
|
|
(3)
|
|
|
—
|
|
|
|
(4)
|
|
|
—
|
|
Other non-cash
adjustments
|
|
(5)
|
|
|
(4)
|
|
|
|
(14)
|
|
|
(14)
|
|
Income tax (expense)
benefit (3)
|
|
26
|
|
|
5
|
|
|
|
17
|
|
|
(192)
|
|
Net income (loss)
and comprehensive income (loss)
|
|
$
|
83
|
|
|
$
|
(72)
|
|
|
|
$
|
313
|
|
|
$
|
(207)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
|
$
|
168
|
|
|
$
|
180
|
|
|
|
$
|
665
|
|
|
$
|
638
|
|
Adjusted EBITDA
related to unconsolidated affiliate
|
|
3
|
|
|
—
|
|
|
|
4
|
|
|
—
|
|
Distributable cash
flow from unconsolidated affiliate
|
|
(3)
|
|
|
—
|
|
|
|
(4)
|
|
|
—
|
|
Cash interest expense
(3)
|
|
41
|
|
|
39
|
|
|
|
166
|
|
|
142
|
|
Income tax expense
(benefit), current (3)
|
|
(41)
|
|
|
11
|
|
|
|
(22)
|
|
|
489
|
|
Transaction-related
income taxes (5)
|
|
31
|
|
|
—
|
|
|
|
31
|
|
|
(470)
|
|
Maintenance capital
expenditures (3)
|
|
17
|
|
|
15
|
|
|
|
40
|
|
|
31
|
|
Distributable Cash
Flow
|
|
120
|
|
|
115
|
|
|
|
450
|
|
|
446
|
|
Transaction-related
expense (3)
|
|
—
|
|
|
(1)
|
|
|
|
3
|
|
|
11
|
|
Series A Preferred
distribution
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(2)
|
|
Distributable Cash
Flow, as adjusted (2)
|
|
$
|
120
|
|
|
$
|
114
|
|
|
|
$
|
453
|
|
|
$
|
455
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to
Partners:
|
|
|
|
|
|
|
|
|
|
Limited
Partners
|
|
$
|
69
|
|
|
$
|
68
|
|
|
|
$
|
273
|
|
|
$
|
272
|
|
General
Partners
|
|
18
|
|
|
18
|
|
|
|
72
|
|
|
70
|
|
Total distributions
to be paid to partners
|
|
$
|
87
|
|
|
$
|
86
|
|
|
|
$
|
345
|
|
|
$
|
342
|
|
Common Units
outstanding - end of period
|
|
83.0
|
|
|
82.7
|
|
|
|
83.0
|
|
|
82.7
|
|
Distribution coverage
ratio (6)
|
|
1.39
|
|
|
1.33
|
|
|
|
1.32
|
|
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes
depreciation, amortization and accretion.
|
(2)
|
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.
|
Adjusted EBITDA
reflects amounts for the unconsolidated affiliate based on the same
recognition and measurement methods used to record equity in
earnings of unconsolidated affiliate. Adjusted EBITDA related to
unconsolidated affiliate excludes the same items with respect to
the unconsolidated affiliate as those excluded from the calculation
of Adjusted EBITDA, such as interest, taxes, depreciation,
depletion, amortization and other non-cash items. Although these
amounts are excluded from Adjusted EBITDA related to unconsolidated
affiliate, such exclusion should not be understood to imply that we
have control over the operations and resulting revenues and
expenses of such affiliate. We do not control our unconsolidated
affiliate; therefore, we do not control the earnings or cash flows
of such affiliate. The use of Adjusted EBITDA or Adjusted EBITDA
related to unconsolidated affiliate as an analytical tool should be
limited accordingly.
|
(3)
|
Includes amounts from
discontinued operations for the year ended December 31,
2018.
|
(4)
|
Includes other
non-cash adjustments and excludes the impact of inventory
adjustments consistent with the definition of Adjusted
EBITDA.
|
(5)
|
Transaction-related
income taxes primarily related to the 7-Eleven
Transaction.
|
(6)
|
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.
|
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SOURCE Sunoco LP