(2) EBITDA is dened as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense. Adjusted EBITDA
further adjusts EBITDA to reect certain other non-recurring and non-cash items. We dene Adjusted EBITDA to also include adjustments for
unrealized gains and losses on commodity derivatives and inventory fair value adjustments. We dene distributable cash ow as Adjusted
EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt that is paid on a semi-annual basis,
Series A Preferred distribution, current income tax expense, maintenance capital expenditures, and other non-cash adjustments. Further
adjustments are made to distributable cash ow for certain transaction-related and non-recurring expenses that are included in net income.
We believe EBITDA, Adjusted EBITDA and distributable cash ow 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 nancial 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
distributable cash ow provides useful information to investors as it is a widely accepted nancial 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 ow 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 ows from operating activities as a measure of liquidity. EBITDA, Adjusted EBITDA and
distributable cash ow 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 reect our total cash expenditures, or future requirements for capital expenditures or contractual commitments;
they do not reect changes in, or cash requirements for, working capital;
they do not reect 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 reect cash requirements for such replacements; and
as not all companies use identical calculations, our presentation of EBITDA, Adjusted EBITDA and distributable cash ow may not be
comparable to similarly titled measures of other companies.
SUN's gross capital expenditures for the rst quarter were $66 million, which included $48 million for growth capital
and $18 million for maintenance capital. Approximately $14.4 million of the growth capital spent was for the
construction of new-to-industry sites, of which 10 opened in the rst quarter. The construction of all 10 of these
sites started in 2016.
Excluding acquisitions, SUN expects approximately $150 million to be spent on growth capital and approximately
$90 million to be spent on maintenance capital for the full year 2017.
Growth capital spending includes the rebuilding of locations SUN is operating on the Indiana Toll Road.
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SOURCE Sunoco LP