DALLAS, Aug. 3, 2016 /PRNewswire/ -- Sunoco LP
(NYSE: SUN) ("SUN" or the "Partnership") today announced financial
and operating results for the three-month period ended June 30, 2016.
Revenue totaled $4.1 billion, a
decrease of 19.6 percent, compared to $5.1
billion in the second quarter of 2015. The decline was the
result of a 60.5 cent per gallon
decrease in the average selling price of fuel partly offset by an
increase in retail merchandise sales.
Total gross profit was $580.6
million, compared to $545.2
million in the second quarter of 2015. Key drivers of
the increase were a higher total weighted average fuel margin, an
increase in merchandise margin and the contribution from third
party acquisitions and new-to-industry locations opened during the
last 12 months.
Income from operations was $124.2
million, versus $123.7 million
in the second quarter of 2015, reflecting an increase in gross
profit offset by higher general and administrative and other
operating expenses.
Net income attributable to partners was $72.1 million, or $0.53 per diluted unit, versus $34.9 million, or $0.87 per diluted unit, in the second quarter of
2015.
Adjusted EBITDA (1) for the quarter totaled
$164.0 million, compared with
$142.4 million in the second quarter
of 2015. The favorable year-over-year comparison reflects
stronger retail fuel and merchandise margins, the contribution from
third party acquisitions and new-to-industry locations opened
during the last 12 months offset by weaker wholesale margins.
Distributable cash flow attributable to partners (1),
as adjusted, was $92.2 million,
compared to $39.3 million a year
earlier.
On a weighted-average basis, fuel margin for all gallons sold
increased to 13.8 cents per gallon,
compared to 12.9 cents per gallon in
the second quarter of 2015. The increase was primarily
attributable to an increase in margins in both the retail and
wholesale segments.
Net income attributable to partners for the wholesale segment
was $83.2 million compared to
$30.7 million a year ago.
Adjusted EBITDA was $77.3 million,
versus $61.5 million in the second
quarter of last year. Total wholesale gallons sold were
1,315.7 million, compared with 1,285.0 million in the second
quarter of 2015, an increase of 2.4 percent. This includes
gallons sold to consignment stores and third-party customers,
including independent dealers, fuel distributors and commercial
customers. The Partnership earned 8.8
cents per gallon on these volumes, compared to 8.6 cents per gallon a year earlier.
Net loss attributable to partners for the retail segment was
$11.0 million compared to a net
income of $4.2 million a year
ago. Adjusted EBITDA was $86.7
million, versus $80.9 million
in the second quarter of last year. Total retail gallons sold
increased by 0.3 percent to 641.2 million gallons as a result of
the contribution from third party acquisitions and new-to-industry
locations opened during the last 12 months. The Partnership
earned 24.0 cents per gallon on these
volumes, compared to 21.4 cents per
gallon a year earlier.
Total merchandise sales increased by 2.8 percent from a year ago
to $576.6 million, reflecting the
contribution from third party acquisitions and new-to-industry
locations opened during the last 12 months. Merchandise
sales contributed $187.3 million of
gross profit with a retail merchandise margin of 32.5 percent, a
100 basis point increase from the second quarter of 2015.
Same-store merchandise sales decreased by 1.8 percent,
reflecting continued weakness in SUN's convenience store operations
in the Texas oil producing regions
and inclement weather in May in Texas and on the East Coast. Same-store
fuel sales decreased by 2.8 percent as a result of weakness
throughout the state of Texas,
particularly lower year-over-year activity in oil producing
markets. In the Texas oil
producing regions, same-store merchandise sales decreased by 15.6
percent, and same-store fuel sales declined 17.9 percent.
Excluding the oil producing regions, same-store sales increased by
0.6 percent, and same-store gallons decreased by 1.0
percent.
As of June 30, SUN operated
approximately 1,340 convenience stores and retail fuel outlets
along the East Coast, in the Southwest and in Hawaii. Third party operated sites totaled
approximately 5,600 locations.
SUN's other recent accomplishments include the following:
- Completed the acquisition of retail locations serving the
upstate New York market from
Valentine Stores, Inc., including 18
company-operated convenience stores that sell approximately 20
million gallons of fuel annually.
- Completed the acquisition of the "Rattlers" convenience store
assets and wholesale fuel business from Kolkhorst Petroleum, Inc.
This includes 14 company-operated locations and wholesale fuel
supply contracts for a network of independent dealer-owned and
dealer-operated locations in the Austin, Houston and Waco,
Texas markets totaling approximately 46 million gallons
annually.
- Entered into an agreement to purchase the fuels business of
Emerge Energy Services LP (NYSE: EMES) for $178.5 million, subject to working capital
adjustments. This includes Dallas-based Direct Fuels LLC and
Birmingham-based Allied Energy Company LLC, which engage in the
processing of transmix and the distribution of refined fuels. These
two processing plants have attached refined product terminals with
over 800,000 barrels of storage capacity.
- Entered into an agreement to purchase the convenience store,
wholesale motor fuel distribution and commercial fuels distribution
businesses serving East Texas and
Louisiana from Denny Oil Company,
Inc. The purchase agreement comprises six company-operated
locations and approximately 127 supply contracts with dealer-owned
and dealer-operated sites and over 500 commercial customers.
- Issued $800.0 million of 6.25%
Senior Notes due 2021 through an upsized private offering that
raised proceeds, net of underwriter fees and expenses, of
$789.4 million. The notes proceeds
were used to repay outstanding borrowings under the senior secured
term loan facility.
SUN's segment results and other supplementary data are provided
after the financial tables below.
Distribution Increase
On July 26, the Board of Directors
of SUN's general partner declared a distribution for the second
quarter of 2016 of $0.8255 per unit,
which corresponds to $3.3020 per unit
on an annualized basis. This represents a 1.0 percent
increase compared to the distribution for the first quarter of 2016
and a 19.1 percent increase compared with the second quarter of
2015. This is the Partnership's thirteenth consecutive quarterly
increase. The distribution will be paid on August 15 to unitholders of record on
August 5.
SUN's distribution coverage ratio for the second quarter was
0.93 times. The distribution coverage ratio on a trailing 12-month
basis was 1.20 times.
Liquidity
At June 30, SUN had borrowings
against its revolving line of credit of $675.0 million and other long-term debt of
$3.6 billion. Availability on
the revolving credit facility after borrowings and letters of
credit commitments was $802.8
million. Net debt to Adjusted EBITDA, pro forma for
acquisitions, was 5.2 times at the end of the second quarter.
(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
Sunoco LP management will hold a conference call on Thursday, August 4, at 9:00 a.m. CT (10:00 a.m.
ET) to discuss second quarter results and recent
developments. To participate, dial 412-902-0003 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 approximately 1,340 retail fuel sites and convenience
stores (including APlus, Stripes, Aloha Island Mart and Tigermarket
brands) and distributes motor fuel to convenience stores,
independent dealers, commercial customers and distributors located
in more than 30 states at approximately 6,900 sites. Our parent --
Energy Transfer Equity, L.P. (NYSE: ETE) -- owns Sunoco's general
partner and incentive distribution rights. For more information,
visit the Sunoco LP website at www.SunocoLP.com
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
(469) 646-1188, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst –
Investor Relations and Finance
(469) 646-1328, patrick.graham@sunoco.com
Dennard-Lascar Associates
Anne Pearson
(210) 408-6321, apearson@dennardlascar.com
Media:
Jeff Shields,
Communications Manager
(215) 977-6056, jeff.shields@sunoco.com
- Financial Schedules Follow –
SUNOCO
LP
CONSOLIDATED
BALANCE SHEETS
(in thousands,
except units)
(unaudited)
|
|
|
|
June 30, 2016
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
83,175
|
|
|
$
|
72,627
|
|
Advances to
affiliates
|
|
|
—
|
|
|
|
365,536
|
|
Accounts receivable,
net
|
|
|
385,678
|
|
|
|
308,285
|
|
Accounts receivable
from affiliates
|
|
|
7,138
|
|
|
|
8,074
|
|
Inventories,
net
|
|
|
496,829
|
|
|
|
467,291
|
|
Other current
assets
|
|
|
57,655
|
|
|
|
46,080
|
|
Total current
assets
|
|
|
1,030,475
|
|
|
|
1,267,893
|
|
Property and
equipment, net
|
|
|
3,228,409
|
|
|
|
3,154,826
|
|
Other
assets:
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
3,153,657
|
|
|
|
3,111,262
|
|
Intangible assets,
net
|
|
|
1,277,309
|
|
|
|
1,259,440
|
|
Other noncurrent
assets
|
|
|
71,704
|
|
|
|
48,398
|
|
Total
assets
|
|
$
|
8,761,554
|
|
|
$
|
8,841,819
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
445,709
|
|
|
$
|
433,988
|
|
Accounts payable to
affiliates
|
|
|
22,660
|
|
|
|
14,988
|
|
Advances from
affiliates
|
|
|
98,994
|
|
|
|
—
|
|
Accrued expenses and
other current liabilities
|
|
|
302,299
|
|
|
|
307,939
|
|
Current maturities of
long-term debt
|
|
|
5,694
|
|
|
|
5,084
|
|
Total current
liabilities
|
|
|
875,356
|
|
|
|
761,999
|
|
Revolving line of
credit
|
|
|
675,000
|
|
|
|
450,000
|
|
Long-term debt,
net
|
|
|
3,514,261
|
|
|
|
1,502,531
|
|
Deferred tax
liability
|
|
|
668,188
|
|
|
|
694,383
|
|
Other noncurrent
liabilities
|
|
|
168,771
|
|
|
|
170,169
|
|
Total
liabilities
|
|
|
5,901,576
|
|
|
|
3,579,082
|
|
Commitments and
contingencies (Note 11)
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Limited
partners:
|
|
|
|
|
|
|
|
|
Common unitholders -
public (49,588,960 units
issued and outstanding as of June 30, 2016
and December 31,
2015)
|
|
|
1,763,151
|
|
|
|
1,768,890
|
|
Common unitholders -
affiliated (45,750,826 units
issued and outstanding as of June 30, 2016
and 37,776,746 units issued
and outstanding as of December 31, 2015)
|
|
|
1,096,827
|
|
|
|
1,275,558
|
|
Class A unitholders -
held by subsidiary (no units
issued and outstanding as of June 30, 2016 and 11,018,744 units issued and outstanding as of
December 31, 2015)
|
|
|
—
|
|
|
|
—
|
|
Class C unitholders -
held by subsidiary (16,410,780
units issued and outstanding as of June 30, 2016 and
no units issued and outstanding as of
December 31, 2015)
|
|
|
—
|
|
|
|
—
|
|
Total partners'
capital
|
|
|
2,859,978
|
|
|
|
3,044,448
|
|
Predecessor
equity
|
|
|
—
|
|
|
|
2,218,289
|
|
Total
equity
|
|
|
2,859,978
|
|
|
|
5,262,737
|
|
Total liabilities and
equity
|
|
$
|
8,761,554
|
|
|
$
|
8,841,819
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements.
|
SUNOCO
LP
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands,
except unit and per unit amounts)
(unaudited)
|
|
|
|
For the Three Months
Ended June 30,
|
|
For the Six Months
Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor
fuel
|
|
$
|
1,384,858
|
|
$
|
1,649,199
|
|
$
|
2,500,573
|
|
$
|
3,016,855
|
|
Wholesale motor fuel
sales to third parties
|
|
|
1,996,716
|
|
|
2,845,635
|
|
|
3,492,590
|
|
|
5,282,137
|
|
Wholesale motor fuel
sales to affiliates
|
|
|
9,710
|
|
|
3,972
|
|
|
16,839
|
|
|
4,939
|
|
Merchandise
|
|
|
576,594
|
|
|
560,680
|
|
|
1,100,688
|
|
|
1,043,803
|
|
Rental
income
|
|
|
22,575
|
|
|
20,534
|
|
|
44,699
|
|
|
40,316
|
|
Other
|
|
|
61,714
|
|
|
46,064
|
|
|
99,091
|
|
|
88,886
|
|
Total
revenues
|
|
|
4,052,167
|
|
|
5,126,084
|
|
|
7,254,480
|
|
|
9,476,936
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor
fuel
|
|
|
1,229,528
|
|
|
1,509,411
|
|
|
2,213,970
|
|
|
2,729,650
|
|
Wholesale motor
fuel
|
|
|
1,842,464
|
|
|
2,686,740
|
|
|
3,194,308
|
|
|
5,031,539
|
|
Merchandise
|
|
|
389,303
|
|
|
383,869
|
|
|
747,018
|
|
|
718,791
|
|
Other
|
|
|
10,305
|
|
|
854
|
|
|
19,874
|
|
|
2,513
|
|
Total cost of
sales
|
|
|
3,471,600
|
|
|
4,580,874
|
|
|
6,175,170
|
|
|
8,482,493
|
|
Gross
profit
|
|
|
580,567
|
|
|
545,210
|
|
|
1,079,310
|
|
|
994,443
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
73,723
|
|
|
65,941
|
|
|
118,914
|
|
|
106,200
|
|
Other
operating
|
|
|
266,788
|
|
|
249,442
|
|
|
515,793
|
|
|
493,032
|
|
Rent
|
|
|
35,639
|
|
|
35,791
|
|
|
69,096
|
|
|
69,117
|
|
Loss on disposal of
assets
|
|
|
1,501
|
|
|
178
|
|
|
2,715
|
|
|
147
|
|
Depreciation,
amortization and accretion
|
|
|
78,724
|
|
|
70,200
|
|
|
156,790
|
|
|
136,943
|
|
Total operating
expenses
|
|
|
456,375
|
|
|
421,552
|
|
|
863,308
|
|
|
805,439
|
|
Income from
operations
|
|
|
124,192
|
|
|
123,658
|
|
|
216,002
|
|
|
189,004
|
|
Interest expense,
net
|
|
|
50,587
|
|
|
21,198
|
|
|
78,276
|
|
|
29,175
|
|
Income before income
taxes
|
|
|
73,605
|
|
|
102,460
|
|
|
137,726
|
|
|
159,829
|
|
Income tax
expense
|
|
|
1,468
|
|
|
8,926
|
|
|
3,580
|
|
|
16,989
|
|
Net income and
comprehensive income
|
|
|
72,137
|
|
|
93,534
|
|
|
134,146
|
|
|
142,840
|
|
Less: Net income and
comprehensive income attributable
to noncontrolling interest
|
|
|
—
|
|
|
847
|
|
|
—
|
|
|
1,693
|
|
Less: Preacquisition
income allocated to general partner
|
|
|
—
|
|
|
57,820
|
|
|
—
|
|
|
89,208
|
|
Net income and
comprehensive income attributable
to partners
|
|
$
|
72,137
|
|
$
|
34,867
|
|
$
|
134,146
|
|
$
|
51,939
|
|
Net income per
limited partner unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common (basic and
diluted)
|
|
$
|
0.53
|
|
$
|
0.87
|
|
$
|
1.01
|
|
$
|
1.31
|
|
Subordinated (basic
and diluted)
|
|
$
|
—
|
|
$
|
0.87
|
|
$
|
—
|
|
$
|
1.31
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common units - public
(basic)
|
|
|
49,588,960
|
|
|
20,036,329
|
|
|
49,588,960
|
|
|
20,036,329
|
|
Common units - public
(diluted)
|
|
|
49,644,916
|
|
|
20,077,865
|
|
|
49,644,916
|
|
|
20,077,865
|
|
Common units -
affiliated (basic and diluted)
|
|
|
45,750,826
|
|
|
4,858,330
|
|
|
41,807,600
|
|
|
4,460,589
|
|
Subordinated units -
affiliated
|
|
|
—
|
|
|
10,939,436
|
|
|
—
|
|
|
10,939,436
|
|
Cash distribution
per common unit
|
|
$
|
0.8255
|
|
$
|
0.6934
|
|
$
|
1.6428
|
|
$
|
1.3384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements.
|
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, 2016 and 2015 and have
been derived from our historical consolidated financial
statements.
The following table sets forth, for the periods indicated,
information concerning key measures we rely on to gauge our
operating performance (in thousands, except gross profit per
gallon):
|
For the Three Months
Ended June 30,
|
|
|
2016
|
|
|
2015
|
|
Wholesale
|
Retail
|
Total
|
|
|
Wholesale
|
Retail
|
Total
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor
fuel
|
$
|
—
|
$
|
1,384,858
|
$
|
1,384,858
|
|
|
$
|
—
|
$
|
1,649,199
|
$
|
1,649,199
|
|
Wholesale motor fuel
sales to third parties
|
|
1,996,716
|
|
—
|
|
1,996,716
|
|
|
|
2,845,635
|
|
—
|
|
2,845,635
|
|
Wholesale motor fuel
sales to affiliates
|
|
9,710
|
|
—
|
|
9,710
|
|
|
|
3,972
|
|
—
|
|
3,972
|
|
Merchandise
|
|
—
|
|
576,594
|
|
576,594
|
|
|
|
—
|
|
560,680
|
|
560,680
|
|
Rental
income
|
|
19,137
|
|
3,438
|
|
22,575
|
|
|
|
11,485
|
|
9,049
|
|
20,534
|
|
Other
|
|
7,281
|
|
54,433
|
|
61,714
|
|
|
|
6,270
|
|
39,794
|
|
46,064
|
|
Total
revenues
|
$
|
2,032,844
|
$
|
2,019,323
|
$
|
4,052,167
|
|
|
$
|
2,867,362
|
$
|
2,258,722
|
$
|
5,126,084
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail motor
fuel
|
$
|
—
|
$
|
155,330
|
$
|
155,330
|
|
|
$
|
—
|
$
|
139,788
|
$
|
139,788
|
|
Wholesale motor
fuel
|
|
163,962
|
|
—
|
|
163,962
|
|
|
|
162,867
|
|
—
|
|
162,867
|
|
Merchandise
|
|
—
|
|
187,291
|
|
187,291
|
|
|
|
—
|
|
176,811
|
|
176,811
|
|
Rental and
other
|
|
25,006
|
|
48,978
|
|
73,984
|
|
|
|
16,926
|
|
48,818
|
|
65,744
|
|
Total gross
profit
|
$
|
188,968
|
$
|
391,599
|
$
|
580,567
|
|
|
$
|
179,793
|
$
|
365,417
|
$
|
545,210
|
|
Net income (loss)
and comprehensive
income (loss) attributable to partners
|
$
|
83,171
|
$
|
(11,034)
|
$
|
72,137
|
|
|
$
|
30,657
|
$
|
4,210
|
$
|
34,867
|
|
Adjusted EBITDA
attributable to partners (2)
|
$
|
77,338
|
$
|
86,660
|
$
|
163,998
|
|
|
$
|
61,457
|
$
|
76,953
|
$
|
138,410
|
|
Distributable cash
flow attributable to partners, as adjusted (2)
|
|
|
|
|
$
|
92,225
|
|
|
|
|
|
|
$
|
39,293
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total motor fuel
gallons sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
641,198
|
|
641,198
|
|
|
|
|
|
639,148
|
|
639,148
|
|
Wholesale
|
|
1,315,728
|
|
|
|
1,315,728
|
|
|
|
1,285,041
|
|
|
|
1,285,041
|
|
Motor fuel gross
profit (cents per
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gallon)
(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
24.0
|
|
|
|
|
|
|
21.4
|
|
|
|
Wholesale
|
8.8
|
|
|
|
|
|
|
8.6
|
|
|
|
|
|
Volume-weighted
average for all gallons
|
|
|
|
|
13.8
|
|
|
|
|
|
|
12.9
|
|
Retail merchandise
margin
|
|
|
32.5%
|
|
|
|
|
|
|
31.5%
|
|
|
|
|
|
(1)
|
Excludes the impact
of inventory fair value adjustments consistent with the definition
of Adjusted EBITDA.
|
(2)
|
We define EBITDA as
net income before net interest expense, income tax expense and
depreciation, amortization and accretion expense. We define
Adjusted EBITDA to include adjustments for non-cash compensation
expense, gains and losses on disposal of assets, 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 should not be considered 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
- because 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.
The following table presents a reconciliation of net income to
EBITDA, Adjusted EBITDA and distributable cash flow for the three
months ended June 30, 2016 and 2015 (in thousands):
|
|
For the Three Months
Ended June 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
Wholesale
|
|
Retail
|
|
Total
|
|
|
Wholesale
|
|
Retail
|
|
Total
|
|
Net income (loss) and
comprehensive income (loss)
|
|
$
|
83,171
|
|
$
|
(11,034)
|
|
$
|
72,137
|
|
|
$
|
90,894
|
|
$
|
2,640
|
|
$
|
93,534
|
|
Depreciation,
amortization and accretion
|
|
|
17,423
|
|
|
61,301
|
|
|
78,724
|
|
|
|
15,459
|
|
|
54,741
|
|
|
70,200
|
|
Interest expense,
net
|
|
|
16,241
|
|
|
34,346
|
|
|
50,587
|
|
|
|
5,313
|
|
|
15,885
|
|
|
21,198
|
|
Income tax expense
(benefit)
|
|
|
606
|
|
|
862
|
|
|
1,468
|
|
|
|
(262)
|
|
|
9,188
|
|
|
8,926
|
|
EBITDA
|
|
$
|
117,441
|
|
$
|
85,475
|
|
$
|
202,916
|
|
|
$
|
111,404
|
|
$
|
82,454
|
|
$
|
193,858
|
|
Non-cash stock
compensation expense
|
|
|
2,796
|
|
|
583
|
|
|
3,379
|
|
|
|
1,121
|
|
|
1,275
|
|
|
2,396
|
|
Loss (gain) on
disposal of assets
|
|
|
(351)
|
|
|
1,852
|
|
|
1,501
|
|
|
|
(11)
|
|
|
189
|
|
|
178
|
|
Unrealized loss on
commodity derivatives
|
|
|
5,570
|
|
|
—
|
|
|
5,570
|
|
|
|
786
|
|
|
—
|
|
|
786
|
|
Inventory fair value
adjustment
|
|
|
(48,118)
|
|
|
(1,250)
|
|
|
(49,368)
|
|
|
|
(51,843)
|
|
|
(3,002)
|
|
|
(54,845)
|
|
Adjusted
EBITDA
|
|
$
|
77,338
|
|
$
|
86,660
|
|
$
|
163,998
|
|
|
$
|
61,457
|
|
$
|
80,916
|
|
$
|
142,373
|
|
Adjusted EBITDA
attributable
to noncontrolling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
3,963
|
|
|
3,963
|
|
Adjusted EBITDA
attributable to partners
|
|
$
|
77,338
|
|
$
|
86,660
|
|
$
|
163,998
|
|
|
$
|
61,457
|
|
$
|
76,953
|
|
$
|
138,410
|
|
Cash interest expense
(3)
|
|
|
|
|
|
|
|
|
47,819
|
|
|
|
|
|
|
|
|
|
15,088
|
|
Income tax expense
(benefit) (current)
|
|
|
|
|
|
|
|
|
288
|
|
|
|
|
|
|
|
|
|
(259)
|
|
Maintenance capital
expenditures
|
|
|
|
|
|
|
|
|
23,944
|
|
|
|
|
|
|
|
|
|
4,074
|
|
Preacquisition
earnings
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
82,914
|
|
Distributable cash
flow attributable to partners
|
|
|
|
|
|
|
|
$
|
91,947
|
|
|
|
|
|
|
|
|
$
|
36,593
|
|
Transaction-related
expense
|
|
|
|
|
|
|
|
|
278
|
|
|
|
|
|
|
|
|
|
2,700
|
|
Distributable cash
flow attributable to partners, as adjusted
|
|
|
|
|
|
|
|
$
|
92,225
|
|
|
|
|
|
|
|
|
$
|
39,293
|
|
|
|
(3)
|
Reflects the
Partnership's cash interest paid less the cash interest paid on our
VIE debt of $4.0 million during the three months ended
June 30, 2015.
|
Capital Spending
SUN's gross capital expenditures for the second quarter were
$74.2 million, which included
$50.3 million for growth capital and
$23.9 million for maintenance
capital. Approximately $24.7
million of the growth capital spent was for the construction
of new-to-industry sites, of which six were opened in the second
quarter, with 23 currently under construction.
SUN expects capital spending for the full year 2016, excluding
acquisitions, to be within the following ranges ($ in millions)
|
Growth
|
Maintenance
|
|
|
|
|
Low
|
High
|
Low
|
High
|
|
|
|
|
|
|
$380
|
$400
|
$100
|
$110
|
Growth capital spending includes the construction of at least 35
new-to-industry sites that SUN expects to complete in 2016.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sunoco-lp-announces-second-quarter-2016-financial-and-operating-results-300308938.html
SOURCE Sunoco LP