ENERGY TRANSFER PARTNERS LP HOUSTON, Feb. 24, 2016 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three- and twelve-month periods ended December 31, 2015.
Adjusted EBITDA ((1)) attributable to partners for the quarter totaled $112.2 million, compared with $65.5 million in the fourth quarter of 2014. The favorable year-over-year comparison primarily reflects the acquisitions of 31.58 percent of Sunoco, LLC in April and Susser Holdings Corp. in July, both of which were acquired from SUN's affiliate, Energy Transfer Partners, L.P. (NYSE: ETP). All fourth quarter 2014 and full year 2014 figures and comparisons represent as previously reported results for the fourth quarter and full year 2014 and do not reflect any retrospective adjustments for the Sunoco LLC and Susser Holdings acquisitions which were accounted for as transactions between entities under common control.
Distributable cash flow ((1) )attributable to partners, as adjusted, for the quarter was $90.1 million, compared to $51.1 million a year earlier, and distributable cash flow per common unit was $1.03.
Revenue was $3.7 billion for the quarter, up 184.6 percent compared to $1.3 billion in the fourth quarter of 2014. The increase was the result of the contribution of merchandise and retail fuel sales from the Susser's Stripes(® )convenience store chain and the wholesale fuel distribution sales and rental income from SUN's interest in Sunoco, LLC on a consolidated basis, partly offset by the impact of a 37-cent per gallon decrease in the average selling price of fuel.
Total gross profit was $333.2 million for the quarter, compared to $93.2 million in the fourth quarter of 2014. Key drivers of the increase were the contribution from the previously mentioned acquisitions, which resulted in higher-margin retail fuel gallons and merchandise being added to the overall sales mix.
Net income attributable to partners was $7.8 million for the quarter, or ($0.13) per diluted unit, versus $30.1 million, or $0.83 per diluted unit, in the fourth quarter of last year.
On a weighted-average basis, excluding non-controlling interest, fuel margin for all gallons sold in the fourth quarter increased to 15.1 cents per gallon, compared to 13.0 cents per gallon a year ago. The margin increase was driven by the addition of higher-margin retail gallons sold at Stripes, which were partly offset by the wholesale gallons sold through Sunoco, LLC.
Adjusted EBITDA attributable to partners from the wholesale segment was $57.9 million in the fourth quarter. Excluding the non-controlling interest, total wholesale gallons sold in the fourth quarter were 651.8 million, compared with 546.4 million in the fourth quarter of 2014, an increase of 19.3 percent. This includes gallons sold to affiliate-operated convenience stores, consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers.
As a result of the Susser acquisition, which converted affiliate volumes to retail volumes, motor fuel gallons sold to affiliates decreased 72.5 percent from a year ago to 84.0 million gallons during the fourth quarter of 2015, excluding the non-controlling interest. Affiliate customers for the quarter included Sunoco R&M retail fuel and convenience store sites operated by a subsidiary of ETP. All affiliate gallons are sold to Sunoco's retail fuel and convenience stores at a fixed margin of 4.0 cents per gallon.
Other third-party wholesale fuel volumes, excluding non-controlling interest, increased from a year ago by 135.1 percent to 567.7 million gallons related to the acquisition of 31.58 percent of Sunoco, LLC. Gross profit on these gallons was 12.1 cents per gallon, compared to 17.6 cents per gallon a year earlier, driven by a change in customer mix related to the acquisition of the interest in Sunoco, LLC.
Adjusted EBITDA attributable to partners related to the retail segment was $54.3 million in the fourth quarter. Total retail gallons sold increased by 488.0 percent to 354.0 million gallons as a result of the acquisition of Susser. The Partnership earned 22.4 cents per gallon on these volumes, compared to 44.5 cents per gallon a year earlier. The addition of lower-margin retail volumes at Stripes drove most of this decrease.
Merchandise sales increased by 918.8 percent to $400.4 million from a year ago and contributed $132.7 million of gross profit, reflecting the contribution from the Stripes stores.
Retail gallons sold by Stripes locations during the fourth quarter totaled 291.4 million gallons. Gross profit on these gallons was $52.0 million, or 17.9 cents per gallon. Merchandise sales from these locations totaled $343.6 million and contributed $118.9 million of gross profit. On a same-store sales basis, Stripes store merchandise sales decreased by 1.1 percent and fuel sales declined 4.9 percent, primarily reflecting lower year-over-year activity in oil patch markets in South and West Texas. Excluding markets that are directly impacted by oil drilling activity declines, the Stripes business achieved a 4.0 percent increase in merchandise sales and a 0.6 percent decrease in fuel sales volumes on a same-store basis. As of December 31, SUN operated 725 convenience stores and retail fuel outlets in Texas, New Mexico and Oklahoma primarily under its Stripes brand.
SUN also operates approximately 175 convenience stores and fuel outlets in Georgia, Tennessee, Virginia, Maryland and Hawaii, primarily under the MACS, Tigermarket and Aloha Island Mart brands. On a same store sale basis, these stores saw growth of 12.5 percent in merchandise sales and a 0.9 percent decline in fuel gallons for the quarter.
SUN's other recent accomplishments include the following:
-- In November, SUN announced the dropdown of the remaining wholesale fuel
and retail marketing assets from ETP for approximately $2.226 billion.
The transaction is expected to close in March 2016. A significant
portion of the consideration for the transaction will be provided by a
$2.035 billion term loan due October 2019, which was fully underwritten
by Credit Suisse, Bank of America Merrill Lynch, Compass Bank, Mizuho
Bank and Toronto Dominion. The terms of the term loan will substantially
mirror SUN's existing $1.5 billion revolving credit facility.
-- In conjunction with the dropdown, a group of private investors and
Energy Transfer Equity, L.P. (NYSE: ETE) committed to purchase $750
million of SUN common units in an unregistered private placement at a
gross price of $31.00 per unit, prior to adjustments. The private
placement closed and funded in December, with the exception of ETE's
portion, which will fund at the closing of the dropdown transaction.
The proceeds of the private placement were used to repay borrowing under
SUN's revolving credit facility and for general partnership purposes.
-- On December 16, a wholly owned subsidiary of SUN completed the
acquisition of a wholesale fuel distribution business serving the
Northeastern United States from Alta East Inc. for $57 million plus the
value of inventory on hand at closing.
SUN's segment results and other supplementary data are provided after the financial tables shown below.
FY 2015 Compared to FY 2014
Revenue for the full year 2015 totaled $16.9 billion, a 213.0 percent increase compared to full year 2014. Gross profit for this period increased 752.8 percent year-over-year to $1.5 billion.
Total motor fuel volumes sold to affiliates, excluding the non-controlling interest, decreased by 70.6 percent to 346.4 million gallons as a result of the Susser acquisition, which converted affiliate volumes to retail volumes. Wholesale gallons sold to third parties, excluding the non-controlling interest, increased by 214.2 percent to 2.4 billion gallons. Retail gallons sold increased by 1,595.8 percent to 1.4 billion gallons. On a weighted-average basis, fuel margin for all gallons sold, excluding the non-controlling interest, increased to 15.1 cents per gallon for the full year 2015, versus 7.0 cents per gallon in the full year 2014.
Net income attributable to partners for the full year 2015 totaled $87.2 million, a 53.8 percent increase compared to full year 2014. Adjusted EBITDA attributable to partners was $444.1 million, compared to $122.3 million for the 2014 period, and distributable cash flow, as adjusted was $272.2 million, versus $92.5 million for 2014.
Distribution Increase
On January 26, the Board of Directors of SUN's general partner declared a distribution for the fourth quarter of 2015 of $0.8013 per unit, which corresponds to $3.2052 per unit on an annualized basis. This represents a 7.5 percent increase compared to the distribution for the third quarter of 2015 and a 33.6 percent increase compared with the fourth quarter of 2014. This is the Partnership's 11th consecutive quarterly increase. The distribution was paid on February 16 to unitholders of record on February 5.
SUN achieved a 1.04 times distribution coverage ratio for the fourth quarter. The coverage ratio was negatively impacted by the private placement completed in December. SUN achieved a 1.37 times coverage ratio for the 12 months ended December 31, 2015.
Liquidity
At December 31, 2015, SUN had borrowings against its $1.5 billion revolving credit facility of $450.0 million and $22.5 million in standby letters of credit, leaving unused availability of $1,027.5 million. Net debt to Adjusted EBITDA, pro forma for the 31.58 percent of Sunoco, LLC and Susser Holdings Corp. acquisitions, was 4.1 times at year-end.
(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, February 25, at 9:00 a.m. CT (10:00 a.m. ET) to discuss fourth quarter and full year 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.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 900 convenience stores and retail fuel sites and distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors located in more than 30 states at approximately 6,800 sites, both directly and through our 31.58 percent interest in Sunoco, LLC, owned in partnership with Energy Transfer Partners, L.P. (NYSE: ETP). Our parent -- Energy Transfer Equity (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights. ETP owns a 36.4% limited partner interest. 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, Director of Investor Relations and Treasury
(361) 884-2463, scott.grischow@sunoco.com
Anne Pearson
Dennard-Lascar Associates
(210) 408-6321, apearson@dennardlascar.com
Media:
Jeff Shields, Communications Manager
(215) 977-6056, jpshields@sunocoinc.com
- Financial Schedules Follow -
Sunoco LP
Consolidated Balance Sheets
(unaudited)
December 31, December 31,
2014 2015
---- ----
(in thousands, except units)
Assets
Current assets:
Cash and cash equivalents $125,426 $61,783
Advances from affiliates 396,376 234,509
Accounts receivable, net 257,065 259,993
Receivables from
affiliates 4,941 8,074
Inventories, net 440,294 416,504
Other current assets 60,178 33,288
------ ------
Total current assets 1,284,280 1,014,151
Property and equipment,
net 2,081,126 2,397,266
Other assets:
Goodwill 1,854,436 1,821,864
Intangible assets, net 893,455 965,904
Other noncurrent assets 35,568 48,398
------ ------
Total assets $6,148,865 $6,247,583
========== ==========
Liabilities and equity
Current liabilities:
Accounts payable $383,496 $401,231
Accounts payable to
affiliates 56,969 14,988
Accrued expenses and
other current
liabilities 291,047 254,298
Current maturities of
long-term debt 13,772 5,084
------ -----
Total current liabilities 745,284 675,601
Revolving line of credit 683,378 450,000
Long-term debt, net 408,826 1,502,531
Deferred tax liability 378,953 431,327
Other noncurrent
liabilities 89,268 93,709
------ ------
Total liabilities 2,305,709 3,153,168
--------- ---------
Commitments and
contingencies:
Partners' capital:
Limited partner interest:
Common unitholders -
public (20,036,329 units
issued and outstanding
as of December 31, 2014
and 49,588,960 units
issued and outstanding
as of December 31, 2015) 874,688 1,768,890
Common unitholders -
affiliated (4,062,848
units issued and
outstanding as of
December 31, 2014 and
37,776,746 units issued
and outstanding as of
December 31, 2015) 27,459 1,305,350
Subordinated unitholders
-affiliated (10,939,436
units issued and
outstanding as of
December 31, 2014 and no
units issued or
outstanding as of
December 31, 2015) - -
Class A unitholders -
held by subsidiary (no
units issued or
outstanding as of
December 31, 2014 and
11,018,744 units issued
and outstanding as of
December 31, 2015) - -
--- ---
Total partners' capital 902,147 3,074,240
Predecessor equity 2,946,653 -
Noncontrolling interest (5,644) 20,175
------ ------
Total equity 3,843,156 3,094,415
--------- ---------
Total liabilities and
equity $6,148,865 $6,247,583
========== ==========
Sunoco LP
Consolidated Statements of Operations and Comprehensive Income
(unaudited)
Predecessor Successor
----------- ---------
Year ended January 1, 2014 September 1, 2014
through Year ended
December 31, through December 31, 2014 December 31,
2013 August 31, 2014 2015
---- --------------- ----
(dollars in thousands, except unit and per unit amounts)
Revenues:
Retail motor fuel sales $ - $ - $1,298,804 $3,247,545
Wholesale motor fuel sales
to third parties 1,502,786 1,275,422 4,235,415 10,104,193
Wholesale motor fuel sales
to affiliates 2,974,122 2,200,394 772,338 1,832,606
Merchandise sales - - 472,604 1,595,674
Rental income 10,060 11,690 21,642 71,730
Other 5,611 4,683 24,556 83,599
----- ----- ------ ------
Total revenues 4,492,579 3,492,189 6,825,359 16,935,347
Cost of sales:
Retail motor fuel cost of
sales - - 1,159,974 2,916,569
Wholesale motor fuel cost
of sales 4,419,004 3,429,169 4,962,227 11,486,480
Merchandise cost of sales - - 320,282 1,068,933
Other 2,611 2,339 1,792 5,201
----- ----- ----- -----
Total cost of sales 4,421,615 3,431,508 6,444,275 15,477,183
Gross profit 70,964 60,681 381,084 1,458,164
Operating expenses:
General and administrative 16,814 17,075 46,280 166,689
Other operating 3,187 4,964 225,905 677,207
Rent 1,014 729 28,451 92,949
Loss (gain) on disposal of
assets and impairment
charge 324 (39) (394) 2,050
Depreciation, amortization
and accretion 8,687 10,457 60,335 201,019
----- ------ ------ -------
Total operating expenses 30,026 33,186 360,577 1,139,914
------ ------ ------- ---------
Income (loss) from
operations 40,938 27,495 20,507 318,250
Interest expense, net (3,471) (4,767) (10,935) (87,575)
------ ------ ------- -------
Income (loss) before income
taxes 37,467 22,728 9,572 230,675
------ ------ ----- -------
Income tax expense (440) (218) (69,677) (47,070)
---- ---- ------- -------
Net income (loss) and
comprehensive income
(loss) 37,027 22,510 (60,105) 183,605
Less: Net income and
comprehensive income
attributable to
noncontrolling interest - - 1,043 53,783
Less: Preacquisition income
(loss) allocated to
general partner - - (95,381) 42,584
--- --- ------- ------
Net income and
comprehensive income
attributable to partners $37,027 $22,510 $34,233 $87,238
======= ======= ======= =======
Net income per limited
partner unit:
Common - basic and diluted $1.69 $1.02 $0.85 $1.11
Subordinated -basic and
diluted $1.69 $1.02 $0.85 $1.40
Weighted average limited
partner units outstanding:
Common units -public
(basic) 10,884,950 10,944,309 20,493,065 24,550,388
Common units -public
(diluted) 10,906,794 10,969,437 20,499,447 24,572,126
Common units -affiliated
(basic and diluted) 79,308 79,308 79,308 15,703,525
Subordinated units -
affiliated (basic and
diluted) 10,939,436 10,939,436 10,939,436 10,010,333
Cash distribution per unit $1.84 $1.02 $1.15 $2.89
Key Operating Metrics
The following tables set forth key operating metrics as of and for the periods indicated and have been derived from our audited historical consolidated financial statements. For the year ended December 31, 2014, we have combined the Predecessor Period and the Successor Period and presented the unaudited financial data on a combined basis for comparative purposes. This combination does not comply with generally accepted accounting principles or the rules for unaudited pro forma presentation, but is presented because we believe it provides the most meaningful comparison of our financial results. The impact from "push down" accounting related to the ETP Merger resulted in a $4.1 million decrease in depreciation expense, offset by a $3.9 million increase in amortization expense.
The accompanying footnotes to the following four key operating metrics tables can be found immediately preceeding our pro forma results of operations table.
Year Ended December 31,
2013 2014 2015
---- ---- ----
Total Wholesale (2) Retail (2) Total (1) Wholesale Retail Total
----- ------------ --------- -------- --------- ------ -----
(dollars and gallons in thousands, except motor fuel pricing and gross profit per gallon)
Revenues:
Retail motor fuel sales $ - $ - $1,298,804 $1,298,804 $ - $3,247,545 $3,247,545
Wholesale motor fuel sales to third
parties 1,502,786 5,510,837 - 5,510,837 10,104,193 - 10,104,193
Wholesale motor fuel sales to
affiliates 2,974,122 2,972,732 - 2,972,732 1,832,606 - 1,832,606
Merchandise sales - - 472,604 472,604 - 1,595,674 1,595,674
Rental income 10,060 26,459 6,873 33,332 51,599 20,131 71,730
Other income 5,611 2,215 27,024 29,239 27,674 55,925 83,599
----- ----- ------ ------ ------ ------ ------
Total revenues $4,492,579 $8,512,243 $1,805,305 $10,317,548 $12,016,072 $4,919,275 $16,935,347
Gross profit:
Retail motor fuel $ - $ - $138,830 $138,830 $ - $330,976 $330,976
Wholesale motor fuel 57,904 92,173 - 92,173 450,319 - 450,319
Merchandise - - 152,322 152,322 - 526,741 526,741
Rental and other 13,060 34,002 24,438 58,440 74,339 75,789 150,128
------ ------ ------ ------ ------ ------ -------
Total gross profit $70,964 $126,175 $315,590 $441,765 $524,658 $933,506 $1,458,164
Net income attributable to limited
partners (6) $37,027 $85,850 $(29,107) $56,743 $38,440 $48,798 $87,238
Adjusted EBITDA attributable to
partners (6,7) $51,884 $136,646 $114,418 $251,064 $192,099 $251,990 $444,089
Distributable cash flow attributable to
partners, as adjusted (6,7) $47,678 $98,658 $272,232
Operating Data:
Total motor fuel gallons sold:
Retail 441,377 441,377 1,414,326 1,414,326
Wholesale (3) 517,775 2,180,320 2,180,320 5,131,417 5,131,417
Wholesale contract affiliated (4) 1,053,259 1,122,664 1,122,664 1,096,807 1,096,807
Motor fuel gross profit cents per
gallon (5):
Retail 35.2¢ 35.2¢ 23.9¢ 23.9¢
Wholesale (3) 5.1¢ 10.6¢ 10.6¢ 9.4¢ 9.4¢
Wholesale contract affiliated (4) 3.0¢ 3.3¢ 3.3¢ 4.0¢ 4.0¢
Volume-weighted average for all gallons 3.7¢ 11.3¢ 11.3¢
Retail merchandise margin 32.2% 33.0%
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
Year Ended December 31,
2013 2014 2015
---- ---- ----
Total Wholesale (2) Retail (2) Total (1) Wholesale Retail Total
----- ------------ --------- -------- --------- ------ -----
(in thousands)
Net income (loss) and comprehensive
income (loss) $37,027 $(86,571) $48,976 $(37,595) $134,333 $49,272 $183,605
Depreciation, amortization, and
accretion 8,687 34,971 35,821 70,792 67,780 133,239 201,019
Interest expense, net 3,471 7,362 8,340 15,702 54,296 33,279 87,575
Income tax expense 440 67,978 1,917 69,895 4,321 42,749 47,070
--- ------ ----- ------ ----- ------ ------
EBITDA 49,625 23,740 95,054 118,794 260,730 258,539 519,269
Non-cash compensation expense 1,935 5,119 3,798 8,917 4,016 1,687 5,703
Loss (gain) on disposal of assets &
impairment charge 324 (309) (124) (433) 1,440 610 2,050
Unrealized (gains) losses on commodity
derivatives - (1,166) - (1,166) 1,848 - 1,848
Inventory fair value adjustments (9) - 176,710 16,733 193,443 77,849 6,981 84,830
--- ------- ------ ------- ------ ----- ------
Adjusted EBITDA 51,884 204,094 115,461 319,555 345,883 267,817 613,700
Adjusted EBITDA attributable to
noncontrolling interest - 67,448 1,043 68,491 153,783 15,827 169,610
--- ------ ----- ------ ------- ------ -------
Adjusted EBITDA attributable to
partners 51,884 136,646 114,418 251,064 192,100 251,990 444,090
Cash interest expense (8) 3,090 12,029 76,213
Income tax expense (current) 302 3,275 (18,353
Maintenance capital expenditures 814 5,196 34,559
Preacquisition earnings - 138,076 85,556
--- ------- ------
Distributable cash flow attributable to
partners $47,678 $92,488 $266,115
------- ------- --------
Transaction-related expenses - 6,170 6,118
--- ----- -----
Distributable cash flow attributable to
partners, as adjusted $47,678 $98,658 $272,233
======= ======= ========
The following tables set forth key operating metrics as of and for the periods indicated and have been derived from our audited historical consolidated financial statements. For the three months ended December 31, 2014, the figures represent as previously reported results and do not reflect retrospective adjustments for the Sunoco LLC and Susser Holdings acquisitions which were accounted for as transactions between entities under common control.
Three Months Ended December 31,
-------------------------------
2014 2015
---- ----
Total (10) Wholesale Retail Total
--------- --------- ------ -----
(dollars and gallons in thousands, except motor fuel pricing and gross profit per gallon)
Revenues:
Retail motor fuel sales $168,000 $ - $709,050 $709,050
Wholesale motor fuel sales to third
parties 500,215 2,082,452 - 2,082,452
Wholesale motor fuel sales to
affiliates 617,732 441,460 - 441,460
Merchandise sales 39,277 - 400,367 400,367
Rental income 17,273 256 17,529
Other income 16,398 9,796 13,972 23,768
------ ----- ------ ------
Total revenues $1,341,622 $2,550,981 $1,123,645 $3,674,626
Gross profit:
Retail motor fuel $24,786 $ - $74,174 $74,174
Wholesale motor fuel 42,783 86,539 - 86,539
Merchandise 10,213 - 132,665 132,665
Rental and other 15,402 25,750 14,090 39,840
------ ------ ------ ------
Total gross profit $93,184 $112,289 $220,929 $333,218
Net income attributable to limited
partners (6) $30,111 $418 $7,337 $7,755
Adjusted EBITDA attributable to
partners (6,7,11) $65,486 $57,924 $54,252 $112,176
Distributable cash flow attributable to
partners, as adjusted (6,7) $51,114 $90,109
Operating Data:
Total motor fuel gallons sold:
Retail 60,247 354,028 354,028
Wholesale (3) 241,516 1,241,019 1,241,019
Wholesale contract affiliated (4) 304,872 266,006 266,006
Motor fuel gross profit cents per
gallon (5):
Retail 44.5¢ 22.4¢ 22.4¢
Wholesale (3) 17.6¢ 9.8¢ 9.8¢
Wholesale contract affiliated (4) 3.0¢ 4.0¢ 4.0¢
Volume-weighted average for all gallons 13.0¢ 11.4¢
Retail merchandise margin 26.0% 33.1%
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
Three Months Ended December 31,
2014 2015
---- ----
Total (10) Wholesale Retail Total
--------- --------- ------ -----
(in thousands)
Net income (loss) and comprehensive
income (loss) $30,893 $3,142 $8,608 $11,750
Depreciation, amortization, and
accretion 12,502 20,017 36,875 56,892
Interest expense, net 6,636 23,073 6,810 29,883
Income tax expense 2,114 3,349 65 3,414
----- ----- --- -----
EBITDA 52,145 49,581 52,358 101,939
Non-cash compensation expense 778 1,654 520 2,714
Loss (gain) on disposal of assets &
impairment charge 2,670 371 148 519
Unrealized (gains) losses on commodity
derivatives (1,226) (1,078) - (1,078)
Inventory fair value adjustments (9) 11,119 45,344 5,205 50,549
------ ------ ----- ------
Adjusted EBITDA 65,486 95,872 58,231 154,103
Adjusted EBITDA attributable to
noncontrolling interest - 37,948 3,979 41,927
--- ------ ----- ------
Adjusted EBITDA attributable to
partners 65,486 57,924 54,252 112,176
Cash interest expense (8) 6,255 26,577
Income tax expense (current) 3,003 (18,763)
Maintenance capital expenditures 4,332 15,929
Preacquisition earnings (11) 782 -
--- ---
Distributable cash flow attributable to
partners $51,114 $88,433
------- -------
Transaction-related expenses - 1,676
--- -----
Distributable cash flow attributable to
partners, as adjusted $51,114 $90,109
======= =======
(1) Reflects combined results of the Predecessor
Period from January 1, 2014 through August
31, 2014, and the Successor Period from
September 1, 2014 to December 31, 2014. The
impact in the Successor Period from "push
down" accounting related to the ETP Merger
resulted in a $4.1 million decrease in
depreciation expense, offset by a $3.9
million increase in amortization expense.
(2) Reflects MACS and Sunoco LLC wholesale
operations and MACS and Susser retail
operations, beginning September 1, 2014.
(3) Reflects all wholesale transactions excluding
those pursuant to the Susser Distribution
Contract for January 1, 2014 through August
31, 2014 and the Sunoco Inc. Distribution
Contract for all periods presented at set
margins as dictated by the agreements.
(4) Reflects transactions pursuant to the Susser
and Sunoco Inc. Distribution Contracts at
set margins as dictated by agreements.
Susser Distribution Contract included during
predecessor period only.
(5) Excludes the impact of inventory fair value
adjustments consistent with the definition
of Adjusted EBITDA.
(6) Excludes the noncontrolling interest results
of operations related to our consolidated
variable interest entities ("VIEs") and
Sunoco LLC.
(7) We define EBITDA as net income before net
interest expense, income tax expense and
depreciation, amortization and accretion
expense. Adjusted EBITDA further adjusts
EBITDA to reflect certain other non-
recurring and non-cash items. Effective
September 1, 2014, as a result of the ETP
Merger and to conform the method by which we
measure our business to that of ETP's
operations, 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 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 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.
(8) Reflects the partnership's cash interest paid
less the cash interest paid on our VIE debt
of $9.1 million and $2.1 million during the
year ended December 31, 2015, and the three
months ended December 31, 2015,
respectively.
(9) Due to the change in fuel prices, we recorded
a $193.4 million, $84.8 million, $11.1
million and $50.5 million write-down of the
value of fuel inventory during the years
ended December 31, 2014 and 2015 and the
three months ended December 31, 2014 and
2015, respectively.
(10) For the three months ended December 31, 2014,
the figures represent as previously reported
results and do not reflect retrospective
adjustments for the Sunoco LLC and Susser
Holdings acquisitions which were accounted
for as transactions between entities under
common control. Additionally, we began
presenting key operating metrics by segment
beginning as of January 1, 2015.
(11) Beginning on January 1, 2015, we present
Adjusted EBITDA attributable to partners.
Previously the impact of noncontrolling
interest was adjusted to DCF.
Pro Forma Results of Operations
We have provided below certain supplemental pro forma information for the year ended December 31, 2015. The pro forma information gives effect to the 68.42% noncontrolling interest in Sunoco LLC. Pursuant to our 31.58% membership interest in Sunoco LLC, the Partnership's pro forma information reflects only that equity interest in Sunoco LLC and excludes the 68.42% noncontrolling interest in Sunoco LLC.
Management believes the pro forma presentation is useful to investors because it provides investors comparable operating data to support our Adjusted EBITDA and distributable cash flow attributable to partners.
Three Months
ended Year ended
December 31, December 31,
2015 2015
------------- -------------
Pro Forma
---------
(unaudited)
(in thousands except gross profit
per gallon)
Gross
profit:
Retail
gross
profit $74,174 $330,976
Wholesale
gross
profit 52,332 255,181
------ -------
Total
fuel
gross
profit $126,506 $586,157
======== ========
Operating
Data:
Motor
fuel
gallons
sold:
Retail 354,028 1,414,326
Wholesale 567,746 2,356,325
Wholesale
contract
affiliated 84,005 346,372
------ -------
Total
fuel
gallons 1,005,779 4,117,023
Motor
fuel
gross
profit
cents
per
gallon
(1):
Retail 22.4¢ 23.9¢
Wholesale 12.1¢ 11.5¢
Wholesale
contract
affiliated 4.0¢ 4.0¢
Volume-
weighted
average
for
all
gallons 15.1¢ 15.1¢
(1) Excludes impact of inventory
fair value adjustments
consistent with the
definition of Adjusted
EBITDA.
Capital Spending
SUN's gross capital expenditures, excluding the non-controlling interest, for the fourth quarter were $107.2 million, which included $91.3 million for growth capital and $15.9 million for maintenance capital. For the full year, SUN invested $232.7 million in growth capital and $34.6 million for maintenance capital. $56.9 million of growth capital was invested in new-to-industry Stripes stores opened between August 1 and December 31, 2015.
We currently expect capital spending for the full year 2016, excluding acquisitions, to be within the following ranges ($ in millions):
Growth Maintenance
Low High Low High
--- ---- --- ----
$390 $420 $100 $110
Growth capital spending includes the construction of 35 to 40 new-to-industry sites that SUN anticipates building in 2016.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sunoco-lp-announces-4q-and-full-year-2015-financial-and-operating-results-300225973.html
SOURCE Sunoco LP
