Sunoco LP Announces 4Q and Full Year 2014 Financial and Operating Results

Feb 18, 2015

- 4Q distribution increased 10% versus 3Q, 24% versus 4Q 2013 levels
- 4Q gallons sold increased 46% versus 4Q 2013 volumes
- FY 2014 gross profit increased 148% versus FY 2013
Conference Call Scheduled for 10:00 a.m. ET (9:00 a.m. CT) on February 19

HOUSTON, Feb. 18, 2015 /PRNewswire/ -- Sunoco LP (NYSE: SUN) (the "Partnership"), today announced financial and operating results for the three and 12-month periods ended December 31, 2014 and provided an update on recent developments.

Reported net income attributable to partners for the quarter was $30.1 million, or $0.83 per diluted unit, compared to $9.5 million, or $0.43 per diluted unit, in the fourth quarter of 2013.  Reported net income includes the impact of $5.7 million, or $0.17 per diluted unit, in charges related to the merger with Energy Transfer Partners, L.P. (NYSE: ETP) and other acquisition activity.

Adjusted EBITDA(1) totaled $65.5 million, of which approximately two-thirds was attributable to the acquisition of Mid-Atlantic Convenience Stores, L.L.C. ("MACS") and Aloha Petroleum, Ltd. ("Aloha") in early October and mid-December, respectively.  By comparison, adjusted EBITDA in the fourth quarter of 2013 was $14.1 million.  Distributable cash flow(1) for the quarter was $51.1 million, compared to $12.6 million a year ago.

Revenue in the fourth quarter was $1.3 billion, up approximately 20 percent compared to $1.1 billion in the comparable period last year. The increase was primarily the result of the contribution of $39.3 million of merchandise sales from the MACS and Aloha convenience stores acquired during the quarter, along with a 46 percent increase in gallons sold, partly offset by the impact of a 55-cent-per-gallon decrease in the average selling price per gallon of fuel.

Total gross profit for the latest quarter was $93.2 million, compared to $20.0 million in the fourth quarter of 2013.  Key drivers of the increase were the MACS and Aloha acquisitions, organic growth in gallons sold and favorable fuel margins. On a weighted average basis, fuel margin for all gallons sold increased to 13.0 cents per gallon, compared to 3.8 cents per gallon a year earlier.  Sales of retail gallons, a change in the wholesale fuel customer mix and increased fuel margins resulting from declining crude oil prices drove most of the margin increase.

At December 31, SUN operated 153 retail convenience stores and fuel outlets in Virginia, Hawaii, Tennessee, Maryland and Georgia.

Affiliate customers included 656 Stripes® and Sac-N-Pac™ convenience stores operated by a subsidiary of our parent company, ETP, as well as sales of motor fuel to ETP subsidiaries for resale under consignment arrangements at approximately 85 independently operated convenience stores.  Motor fuel gallons sold to affiliates during the fourth quarter increased 13 percent from a year ago to 304.9 million gallons.  Gross profit on these gallons totaled $9.5 million, or 3.0 cents per gallon, versus $8.1 million, or 3.0 cents per gallon, in the same period a year ago.

Third-party customers included 738 independent dealers under long-term fuel supply agreements, 55 independently operated consignment locations and over 1,800 other commercial customers.  Total gallons sold to third parties increased year-over-year by 65 percent to 241.5 million gallons.  Gross profit on these gallons was $33.3 million, or 17.6 cents per gallon, compared to $7.6 million, or 5.2 cents per gallon, in the prior-year period.

"Sunoco LP delivered outstanding results in the latest quarter, led primarily by strength in motor fuel margins as well as growth in gallons sold and strong merchandise performance from the convenience stores and retail fuel outlets we recently added to our portfolio," said Bob Owens , Sunoco LP President and Chief Executive Officer.   "These factors combined allowed us to increase our quarterly distribution to unitholders by 24 percent year-over-year.

"Our gross profit increased by 365 percent for the quarter, and gallons sold increased by 46 percent over the same period last year.

"We completed several strategic transactions in the fourth quarter as part of our growth strategy.  The most recent was the acquisition of the Aloha wholesale and retail business in Hawaii on December 16.  On October 1 we completed the acquisition of MACS -- the first drop-down of assets from Energy Transfer Partners to Sunoco LP.  We also issued 9.1 million new common units in our first public offering since our IPO.

"We plan to continue our expansion in 2015 through additional asset contributions from ETP, through purchase and leasebacks of Stripes stores, and through organic growth of new stores within our existing retail footprint.  In addition, we will continue to look for opportunistic acquisitions like the Aloha assets," Owens said.

 

FY 2014 Compared to FY 2013

Revenue for the full year 2014 totaled $5.4 billion, a 20 percent increase compared to full year 2013, of which approximately $0.5 billion is attributable to the acquisition of MACS and Aloha.  Gross profit for this period increased 148 percent year-over-year to $175.9 million.  Total gallons of motor fuel sold to affiliates increased by 12 percent to 1.2 billion gallons, and gallons sold to third parties increased by 45 percent to 749.9 million gallons.  On a weighted average basis, fuel margin for all gallons sold increased to 7.0 cents per gallon for the full year 2014, versus 3.7 cents per gallon in the full year 2013.

Net income attributable to partners for the full year 2014 totaled $56.7 million, a 53 percent increase compared to full year 2013. Adjusted EBITDA was $122.3 million, compared to $51.9 million for the 2013 period, and distributable cash flow was $92.5 million, versus $47.7 million for 2013.

The MACS acquisition was accounted for as a transaction between entities under common control, which requires the Partnership to retrospectively adjust its financial statements to include the balances and operations of MACS from September 1, 2014, the date of common control.  Please refer to the financial statement schedules for a reconciliation of this impact on our previously reported results for the three and nine months ended September 30, 2014.

Distribution Increase

On February 2, 2015, the Board of Directors of SUN's general partner declared a distribution for the fourth quarter of 2014 of $0.60 per unit, which corresponds to $2.40 per unit on an annualized basis.  This represents a 10 percent increase compared to the distribution for the third quarter of 2014 and a 24 percent increase compared with the fourth quarter of 2013, and is the seventh consecutive quarterly increase. The distribution will be paid on February 27 to unitholders of record on February 17. SUN achieved a 2.3 times distribution coverage ratio for the quarter, and 1.5 times for the 12 months ended December 31, 2014.

Aloha Acquisition

Sunoco LP completed its acquisition of Honolulu-based Aloha on December 16. Aloha is the largest independent gasoline marketer and one of the largest convenience store operators in Hawaii.  The transaction included six fuel storage terminals and a wholesale fuel distribution network that markets to approximately 100 company- or dealer-operated stores.  The base purchase price was $240 million, subject to a post-closing earn-out, closing adjustments and before transaction expenses, and was funded under our revolving credit facility.

MACS Acquisition

The first planned acquisition of ETP's retail marketing assets was completed on October 1, 2014, with the purchase of MACS for total consideration of approximately $768 million, subject to certain working capital adjustments.  The consideration paid to ETP consisted of approximately 4 million newly issued SUN units and $556 million in cash.  MACS consists of approximately 110 company-operated convenience stores and 200 dealer-operated and consignment sites in Virginia, Maryland, Tennessee and Georgia.

New Dealers

The Partnership added 261 new contracted dealer sites in the fourth quarter, and 6 sites were discontinued for a total of 793 third-party dealers and consignment locations supplied by SUN as of December 31.  Of that total, 256 are attributable to the acquisitions of MACS and Aloha.

For the full year, SUN added a net of 287 contracted third-party dealer contracts, including 275 acquired sites, 30 organic additions and 18 discontinued sites.

Capital Spending

SUN's gross capital expenditures for the fourth quarter were $69.1 million, which included $64.5 million for growth capital and $4.6 million for maintenance capital, excluding the MACS and Aloha acquisitions.  For the full year, SUN invested $168.1 million in growth capital and $4.9 million for maintenance capital, excluding the acquisitions of MACS and Aloha. Included in growth capex is the purchase of 33 new Stripes stores that were leased back to Stripes.

We currently expect capital spending for the full year 2015, excluding acquisitions, to be within the following ranges (in millions):  

Growth


Maintenance

Low

High


Low

High

$165

$215


$15

$25

Included in the above growth capital spending estimate is the purchase and leaseback of 30 to 35 new convenience stores from Stripes, out of the 35 to 40 that Stripes plans to build in 2015.

Liquidity

At December 31, 2014, SUN had borrowings against its $1.25 billion revolving line of credit of $683.4 million and $11.8 million in standby letters of credit, leaving unused availability of $554.8 million.  Net debt to Adjusted EBITDA, pro forma for the MACS and Aloha 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 for the periods presented.

Fourth Quarter Earnings Conference Call

Sunoco LP management will hold a conference call on Thursday, February 19, at 10:00 a.m. ET (9:00 a.m. CT) 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.  A telephone replay will be available through February 26 by calling 201-612-7415 and using the access code 13599739#.

About Sunoco LP

Sunoco LP (NYSE: SUN) is a master limited partnership (MLP) that primarily distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors. SUN also operates more than 150 convenience stores and retail fuel sites.  SUN's general partner is a wholly-owned subsidiary of ETP. While primarily engaged in natural gas, natural gas liquids, crude oil and refined products transportation, ETP also operates a retail business with a network of more than 5,500 company- or independently-operated retail fuel outlets and convenience stores through its wholly owned subsidiaries, Sunoco, Inc. and Stripes LLC.  For more information, visit the Sunoco LP website at www.SunocoLP.com.

Forward-Looking Statements

This news release contains "forward-looking statements" which may describe Sunoco LP's ("SUN") objectives, expected results of operations, targets, plans, strategies, costs, anticipated capital expenditures, potential acquisitions, new store openings and/or new dealer locations, management's expectations, beliefs or goals regarding proposed transactions between ETP and SUN, the expected timing of those transactions and the future financial and/or operating impact of those transactions, including the anticipated integration process and any related benefits, opportunities or synergies.  These statements are based on current plans, expectations and projections and involve a number of risks and uncertainties that could cause actual results and events to vary materially, including but not limited to: execution, integration, environmental and other risks related to acquisitions (including drop-downs) and our overall acquisition strategy; competitive pressures from convenience stores, gasoline stations, other non-traditional retailers and other wholesale fuel distributors located in SUN's markets; dangers inherent in storing and transporting motor fuel; SUN's ability to renew or renegotiate long-term distribution contracts with customers; changes in the price of and demand for motor fuel; changing consumer preferences for alternative fuel sources or improvement in fuel efficiency; competition in the wholesale motor fuel distribution industry; seasonal trends; severe or unfavorable weather conditions; increased costs; SUN's ability to make and integrate acquisitions; environmental laws and regulations; dangers inherent in the storage of motor fuel; reliance on suppliers to provide trade credit terms to adequately fund ongoing operations; acts of war and terrorism; dependence on information technology systems; SUN's and ETP's ability to consummate any proposed transactions, or to satisfy the conditions precedent to the consummation of such transactions; successful development and execution of integration plans; ability to realize anticipated synergies or cost-savings and the potential impact of the transactions on employee, supplier, customer and competitor relationships; and other unforeseen factors. For a full discussion of these and other risks and uncertainties, refer to the "Risk Factors" section of SUN's and ETP's most recently filed annual reports on Form 10-K and current report on Form 8-K/A filed October 21, 2014. These forward-looking statements are based on and include our estimates as of the date hereof. Subsequent events and market developments could cause our estimates to change. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if new information becomes available, except as may be required by applicable law.

Contacts

Investors:

Clare McGrory , Senior VP, Finance and Investor Relations
(610) 833-3400, cpmcgrory@sunocoinc.com

Anne Pearson
Dennard-Lascar Associates
(210) 408-6321, apearson@dennardlascar.com

Media:

Jeff Shields , Communications Manager
(215) 977-6056, jpshields@sunocoinc.com

Jessica Davila-Burnett , Public Relations Director
(361) 654-4882, jessica.davila-burnett@susser.com

Financial Schedules Follow

 

Sunoco LP

Consolidated Statements of Operations and Comprehensive Income




Predecessor



Successor





Year ended December 31, 2013


January 1, 2014 through August 31, 2014



September 1, 2014 through December 31, 2014


Combined Year ended December 31, 2014


(dollars in thousands except unit and per unit amounts)















Revenue:














 Motor fuel sales to third parties


$

1,502,786


$

1,275,422



$

941,243


$

2,216,665

 Motor fuel sales to affiliates


2,974,122


2,200,394



873,842


3,074,236

 Merchandise sales





52,275


52,275

 Rental income


10,060


11,690



16,020


27,710

 Other income


5,611


4,683



6,447


11,130

Total revenues


4,492,579


3,492,189



1,889,827


5,382,016

Cost of sales:










Motor fuel cost of sales to third parties


1,476,479


1,252,141



872,984


2,125,125

Motor fuel cost of sales to affiliates


2,942,525


2,177,028



861,475


3,038,503

Merchandise





38,820


38,820

Other


2,611


2,339



1,303


3,642

Total cost of sales


4,421,615


3,431,508



1,774,582


5,206,090

Gross profit


70,964


60,681



115,245


175,926

Operating expenses:










General and administrative


16,814


17,075



16,358


33,433

Other operating


3,187


4,964



29,288


34,252

Rent


1,014


729



3,459


4,188

Loss (gain) on disposal of assets and impairment charge


324


(39)



2,670


2,631

Depreciation, amortization and accretion


8,687


10,457



16,498


26,955

Total operating expenses


30,026


33,186



68,273


101,459

Income from operations


40,938


27,495



46,972


74,467

Interest expense, net


(3,471)


(4,767)



(9,562)


(14,329)

Income before income taxes


37,467


22,728



37,410


60,138

Income tax expense


(440)


(218)



(2,134)


(2,352)

Net income and comprehensive income


37,027


22,510



35,276


57,786

Net income attributable to noncontrolling interest





(1,043)


(1,043)

Net income and comprehensive income attributable to partners


$

37,027


$

22,510



$

34,233


$

56,743

 

 


Predecessor



Successor






Year ended December 31, 2013


January 1, 2014 through August 31, 2014



September 1, 2014 through

December 31, 2014


Combined Year ended December 31, 2014


(dollars in thousands except unit and per unit amounts)















Net income per limited partner unit:














Common - basic and diluted


$

1.69



$

1.02




$

0.85



$

1.96


Subordinated - basic and diluted


$

1.69



$

1.02




$

0.85



$

1.96
















Weighted average limited partner units outstanding:














Common units - (basic)


10,964,258



11,023,617




20,572,373



14,206,536


Common units - (diluted)


10,986,102



11,048,745




20,578,755



14,223,648


Subordinated units - affiliated (basic and diluted)


10,939,436



10,939,436




10,939,436



10,939,436
















Cash distribution per unit


$

1.84



$

1.02




$

1.15



$

2.17


 

 


Sunoco LP

Consolidated Statements of Operations and Comprehensive Income

Unaudited




Predecessor



Successor


Three Months Ended

December 31, 2013



Three Months Ended

December 31, 2014


(dollars in thousands, except unit and per unit amounts)

Revenues:





Motor fuel sales to third parties

$

392,937



$

668,215

Motor fuel sales to affiliates

716,322



617,732

Merchandise sales



39,277

Rental income

3,335



12,300

Other income

1,874



4,098

Total revenues

1,114,468



1,341,622

Cost of sales:





Motor fuel cost of sales to third parties

385,296



610,115

Motor fuel cost of sales to affiliates

708,189



608,263

Merchandise



29,064

Other

934



996

Total cost of sales

1,094,419



1,248,438

Gross profit

20,049



93,184

Operating expenses:





General and administrative

4,937



13,137

Other operating

1,382



23,028

Rent

249



2,204

Loss on disposal of assets and impairment charge

118



2,670

Depreciation, amortization and accretion

2,597



12,502

Total operating expenses

9,283



53,541

Income from operations

10,766



39,643

Interest expense, net

(1,101)



(6,636)

Income before income taxes

9,665



33,007

Income tax expense

(142)



(2,114)

Net income and comprehensive income

9,523



30,893

Net income attributable to noncontrolling interest



(782)

Net income and comprehensive income attributable to partners

$

9,523



$

30,111

 

 


Predecessor



Successor


Three Months Ended December 31, 2013



Three Months Ended December 31, 2014



(dollars in thousands, except unit and per unit amounts)

Net income per limited partner unit:







Common - basic and diluted

$

0.43




$

0.83


Subordinated - basic and diluted

$

0.43




$

0.83









Weighted average limited partner units outstanding:







Common units - (basic)

11,014,487




23,745,231


Common units - (diluted)

11,038,440




23,753,287


Subordinated units - affiliated (basic and diluted)

10,939,436




10,939,436









Cash distribution per unit

$

0.49




$

0.60









 

In accordance with generally accepted accounting principles, amounts previously reported for the third quarter of 2014 have been revised to reflect the retrospective consolidation of MACS into the Partnership, as the transfer of MACS into the Partnership met the definition of a transaction between entities under common control.  MACS is retroactively consolidated beginning September 1, 2014, the date (for accounting purposes) that ETP completed its merger with Susser Holdings Corporation, the former parent company of Sunoco LP, and the date the Partnership and MACS began to be under common control.  The following table presents the revenues and net income attributable to partners for the previously separate entities and the revised combined amounts to include the operations of MACS effective September 1, 2014 (in thousands):

 

 



Three Months Ended September 30, 2014



Nine Months Ended September 30, 2014









Revenues:








Partnership


$

1,304,922




$

3,897,534


MACS


142,860




142,860


  Combined


$

1,447,782




$

4,040,394










Net income attributable to partners:








Partnership


$

1,027




$

20,754


MACS


5,878




5,878


  Combined


$

6,905




$

26,632










 

Sunoco LP

Consolidated Balance Sheets




Predecessor



Successor



December 31, 2013



December 31, 2014



(in thousands, except units)

Assets








Current assets:








Cash and cash equivalents


$

8,150




$

67,151


Accounts receivable, net of allowance for doubtful accounts of $323 and $1,220 at December 31, 2013 and 2014, respectively


69,005




81,224


Receivables from affiliates


49,879




19,574


Inventories, net


11,122




48,646


Other current assets


66




8,546


Total current assets


138,222




225,141


Property and equipment, net


180,127




905,465


Other assets:








Marketable securities


25,952





Goodwill


22,823




863,458


Intangible assets, net


22,772




172,108


Deferred tax asset, long-term portion





22,336


Other noncurrent assets


188




16,416


Total assets


$

390,084




$

2,204,924


Liabilities and equity








Current liabilities:








Accounts payable


$

110,432




$

95,932


Accounts payable to affiliates





3,112


Accrued expenses and other current liabilities


11,427




41,881


Current maturities of long-term debt


525




13,757


Total current liabilities


122,384




154,682


Revolving lines of credit


156,210




683,378


Long-term debt


29,416




173,383


Deferred tax liability, long-term portion


222





Other noncurrent liabilities


2,159




49,306


Total liabilities


310,391




1,060,749


Commitments and contingencies:








Partners' capital:








Limited partner interest:








  Common unitholders - public (10,936,352 units issued and outstanding as of December 31, 2013 and 20,036,329 units issued and outstanding as of December 31, 2014)


210,269




874,688


  Common unitholders - affiliated (79,308 units issued and outstanding as of December 31, 2013 and 4,062,848 units issued and outstanding as of December 31, 2014)


1,562




38,821


  Subordinated unitholders - affiliated (10,939,436 units issued and outstanding at each December 31, 2013 and December 31, 2014)


(132,138)




236,310


Total partners' capital


79,693




1,149,819


Noncontrolling interests





(5,644)


Total equity


79,693




1,144,175


Total liabilities and equity


$

390,084




$

2,204,924


Key Operating Metrics

The following table sets forth, for the periods indicated, information concerning key measures we rely on to gauge our operating performance. 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.

The key operating metrics presented below for the twelve months ended December 31, 2014, are the combined results of operations for the Partnership for the predecessor period from January 1, 2014 through ended August 31, 2014, and the successor period from September 1, 2014 through December 31, 2014.   Please refer to the Consolidated Statements of Operations and Comprehensive Income included herein for the results of the individual periods.

 


Three Months Ended



Year Ended


December 31, 2013


December 31, 2014



December 31, 2013


December 31, 2014


(dollars and gallons in thousands, except motor fuel pricing and gross profit per gallon)

Revenues:













Retail motor fuel sales

$



$

168,000




$



$

228,895


Wholesale motor fuel sales to third parties

392,937



500,215




1,502,786



1,987,770


Wholesale motor fuel sales to affiliates

716,322



617,732




2,974,122



3,074,236


Merchandise sales



39,277






52,275


Rental and other income

5,209



16,398




15,671



38,840


Total revenues

1,114,468



1,341,622




4,492,579



5,382,016


Gross profit:













Retail motor fuel



24,786






30,392


Wholesale motor fuel to third parties

7,641



33,314




26,307



61,148


Wholesale motor fuel to affiliates

8,133



9,469




31,597



35,733


Merchandise



10,213






13,455


Other

4,275



15,402




13,060



35,198


Total gross profit

20,049



93,184




70,964



175,926


Net income attributable to partners

$

9,523



$

30,111




$

37,027



$

56,743


Adjusted EBITDA (1)

$

14,067



$

65,486




$

51,885



$

122,313


Distributable cash flow (1)

$

12,648



$

51,114




$

47,679



$

92,488















Operating Data:













Total motor fuel gallons sold:













Retail



60,247






83,419


Wholesale third-party

146,043



241,516




517,775



749,925


Wholesale affiliated

269,544



304,872




1,053,259



1,178,619


Motor fuel gross profit cents per gallon:













Retail



44.5

¢





39.3

¢

Wholesale third-party

5.2

¢


17.6

¢



5.1

¢


9.6

¢

Wholesale affiliated

3.0

¢


3.0

¢



3.0

¢


3.0

¢

Volume-weighted average for all gallons

3.8

¢


13.0

¢



3.7

¢


7.0

¢

Retail merchandise margin



26.0

%





25.7

%














(1)

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. We define distributable cash flow as Adjusted EBITDA less cash interest expense, current income tax expense, maintenance capital expenditures, and other non-cash adjustments.  EBITDA, Adjusted EBITDA and distributable cash flow are not financial measures calculated in accordance with GAAP.

Effective September 1, 2014, as a result of the ETP Merger and in an effort to conform the method by which we measure our business to that of ETP's operations, we now define Adjusted EBITDA to also include adjustments for unrealized gains and losses on commodity derivatives and inventory fair value adjustments.

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;
  • they are used by our management 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, 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 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 loans;
  • 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:


Three Months Ended


Year Ended


December 31, 2013


December 31, 2014


December 31, 2013


December 31, 2014


(in thousands)

Net income

$

9,523



$

30,893



$

37,027



$

57,786


Depreciation, amortization and accretion

2,597



12,502



8,687



26,955


Interest expense, net

1,101



6,636



3,471



14,329


Income tax expense

142



2,114



440



2,352


EBITDA

13,363



52,145



49,625



101,422


Non-cash compensation expense

586



778



1,936



6,080


Loss on disposal of assets and impairment charge

118



2,670



324



2,631


Unrealized gains on commodity derivatives



(1,226)





(1,433)


Inventory fair value adjustments



11,119





13,613


Adjusted EBITDA

14,067



65,486



51,885



122,313


Cash interest expense

1,006



6,255



3,090



12,029


Income tax expense (current)

136



3,003



302



3,275


Maintenance capital expenditures

277



4,332



814



5,196


MACS acquisition adjustment (1)







8,282


Earnings attributable to noncontrolling interest



782





1,043


Distributable cash flow

$

12,648



$

51,114



$

47,679



$

92,488














(1)

Adjustment includes MACS' results of operations for the period September 1, 2014 through September 30, 2014.  The initial date of common control was September 1, 2014 and as such, MACS results have been included in our results of operations from that date forward.

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sunoco-lp-announces-4q-and-full-year-2014-financial-and-operating-results-300038194.html

SOURCE Sunoco LP

Categories: Press Releases