NEWS RELEASE
Sunoco LP Announces 2Q 2015 Financial and
Operating Results and 9th Consecutive Distribution
Increase
8/5/2015
- Distribution increased 7.5% versus 1Q 2015, 33.4% versus 2Q 2014 levels
- Acquisition of Susser Holdings in 3Q to increase Partnership's exposure to high-growth retail markets
Conference Call Scheduled for 9 a.m. CT (10:00 a.m. ET) on Thursday, August 6
HOUSTON, Aug. 5, 2015 /PRNewswire/ -- Sunoco LP (NYSE: SUN) today announced financial and operating results
for the three months ended June 30, 2015 and provided an update on recent developments.
Adjusted EBITDA(1) attributable to partners totaled $55.5 million, compared with adjusted EBITDA attributable to
partners of $15.6 million in the second quarter of 2014. Adjusted EBITDA attributable to partners excluding
transaction related expenses totaled $58.2 million. Distributable cash flow attributable to partners, as adjusted(1)
was $39.3 million, compared to $13.7 million a year earlier, and distributable cash flow per common unit was
$0.9506. The favorable year-over-year comparisons primarily reflect the contributions from the dropdown
acquisitions of a 31.58 percent interest in the wholesale fuel distribution business of Sunoco, LLC in April 2015 and
the MACS convenience stores in October 2014 from SUN's parent, Energy Transfer Partners, L.P. (NYSE: ETP), along
with the purchase of Aloha Petroleum in December 2014.
Revenue was $4.2 billion, up 205.7 percent compared to $1.4 billion in second quarter of 2014. The increase was
the result of the contribution of wholesale fuel distribution sales from Aloha Petroleum and SUN's interest in
Sunoco, LLC on a consolidated basis(2), merchandise and retail fuel sales from the MACS and Aloha convenience
stores, higher rental income, partly offset by the impact of lower selling prices for motor fuel.
1
Total gross profit was $236.8 million, compared to $22.2 million in the second quarter of 2014. Key drivers of the
increase were the contribution from the previously mentioned wholesale and retail businesses and an increase in
the weighted average margin per gallon of gasoline -- which is the result of higher-margin retail fuel gallons being
added to the overall sales mix.
Net income attributable to partners was $34.9 million, or $0.87 per diluted unit, versus $9.6 million, or $0.43 per
diluted unit, in the second quarter of last year.
On a weighted average basis, excluding noncontrolling interest, fuel margin for all gallons sold increased to 7.6
cents per gallon, compared to 3.7 cents per gallon a year ago. Sales of higher margin retail gallons by MACS and
Aloha -- along with a change in the wholesale fuel customer mix related to the Sunoco, LLC, MACS and Aloha
acquisitions -- drove most of the margin increase.
Excluding the noncontrolling interest, total wholesale gallons sold in the second quarter were 967.9 million,
compared with 461.8 million in the second quarter of last year, an increase of 109.6%. This includes gallons sold to
affiliate-operated convenience stores, consignment stores and third-party customers, including independent
dealers, fuel distributors and commercial customers.
Motor fuel gallons sold to affiliates increased 39.2% from a year ago to 408.1 million gallons during the second
quarter of 2015, excluding the noncontrolling interest. Affiliate customers included 679 Stripes® and Sac-N-Pac
convenience stores operated by ETP as well as sales of motor fuel to ETP subsidiaries for resale under consignment
arrangements at approximately 85 independently operated convenience stores. Additionally, effective with the
acquisition of Sunoco, LLC, affiliates also included Sunoco retail fuel and convenience store sites operated by a
subsidiary of ETP, which contributed 86.8 million gallons in the quarter. Organic growth in sales through Stripes
sites from new builds and same store sales growth also contributed to the increase. The Partnership realized a 3.3
cent per gallon gross profit on these gallons on a weighted average basis.
Other wholesale gallons increased from a year ago by 232.1 percent to 559.8 million gallons related to the
acquisitions of 31.58% of Sunoco, LLC, MACs and Aloha. Gross profit on these gallons was 8.2 cents per gallon,
compared to 4.9 cents per gallon a year earlier, driven by a change in customer mix related to the acquisitions.
Retail gallons sold by MACS and Aloha locations during the second quarter totaled 71.1 million gallons. Gross profit
on these gallons was $20.9 million, or 27.4 cents per gallon. Merchandise sales from these locations totaled $57.0
million and contributed $14.8 million of gross profit. On a same-store sales basis, the retail business achieved 1.3%
growth in fuel gallons and 7.8% on merchandise for the quarter. As of June 30, SUN operated 155 retail
convenience stores and fuel outlets in Virginia, Hawaii, Tennessee, Maryland and Georgia.
2
On August 4, the Board of Directors of SUN's general partner declared a distribution for the second quarter of 2015
of $0.6934 per unit, which corresponds to $2.7736 per unit on an annualized basis. This represents a 7.5 percent
increase compared to the distribution for the first quarter of 2015 and a 33.4 percent increase compared with the
second quarter of 2014. This is the Partnership's ninth consecutive quarterly increase. The distribution will be paid
on August 28 to unitholders of record on August 18. SUN achieved a 1.2 times distribution coverage ratio for the
second quarter.
On July 31 the Partnership completed the acquisition of Susser Holdings Corporation from an affiliate of ETP in a
transaction valued at approximately $1.93 billion. SUN paid $966.9 million in cash and issued to ETP's subsidiaries
approximately 21.98 million Class B SUN Units valued at $966.9 million. This drop down is expected to be accretive
to SUN with respect to distributable cash flow and accelerates SUN's exposure to the fast-growing retail business
with its strong backlog of organic growth opportunities and EBITDA performance.
The Partnership expects to complete next week the acquisition of 28 Aziz Quick Stop convenience stores in South
Texas for $41.6 million using amounts available on its revolving credit facility. SUN plans to rebrand most of the
stores to the Stripes convenience store brand.
As previously reported, on April 1, the Partnership completed the acquisition of a 31.58 percent equity interest in
Sunoco, LLC from an affiliate of ETP in a transaction valued at approximately $816 million. A full quarter's
contribution from the Partnership's stake in Sunoco, LLC, is included in SUN's second quarter results.
On April 1, SUN issued $800 million of 6.375% Senior Notes due 2023 through a private offering that raised net
proceeds of $786.5 million. The majority of the proceeds were used to fund the purchase of the Partnership's
interest in Sunoco, LLC, and a small portion was used to repay outstanding borrowings under its senior secured
revolving credit facility.
The Partnership issued $600 million of 5.5% senior notes due 2020 on July 20 through an upsized private offering
that raised net proceeds of $592.5 million. The proceeds were used to fund a portion of the purchase of Susser
Holdings Corporation ("Susser") from ETP.
Also in connection with the Susser transaction, the Partnership issued 5.5 million new common units in a public
offering at a price of $40.10 per unit. The offering was completed on July 21 and raised net proceeds of $212.9
million. The Partnership also granted to the underwriters a 30-day option to purchase up to an additional 825,000
units at the same price.
As of June 30, SUN had borrowings against its $1.5 billion revolving credit facility of $724.7 million and $11.1 million
in standby letters of credit, leaving unused availability of $764.2 million.
3
SUN's gross capital expenditures for the second quarter excluding acquisitions totaled $48.4 million, which includes
$7.0 million in maintenance capital. Of the $41.4 million in growth capital, $31.8 million was for purchase and
leaseback transactions for six Stripes stores, and approximately $10.0 million was for growth in the third-party
wholesale business, including new dealer and distributor supply contracts.
The Partnership currently expects capital spending for the full year 2015, excluding future acquisitions but including
the additional capital spending related to our 31.58% equity interest in Sunoco LLC, to be within the following
ranges (in millions)
Growth Maintenance
Low High Low High
$220 $270 $40 $50
Included in the above growth capital spending estimate are 35 to 40 new convenience stores that Stripes plans to
build in 2015.
______________
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.
2) On April 1, 2015 SUN acquired a 31.58% membership interest in Sunoco, LLC. Because SUN has a controlling financial interest in Sunoco, LLC as
a result of its 50.1% voting interest, SUN's consolidated financial statements include 100% of Sunoco, LLC.
Second Quarter 2015 Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, August 6, 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. A
4
telephone replay will be available through August 13 by calling 201-612-7415 and using the access code 13613135#.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership (MLP) that operates more than 830 convenience stores and
retail fuel sites and also distributes motor fuel to convenience stores, independent dealers, commercial customers
and distributors. SUN conducts its business through wholly owned subsidiaries, as well as through its 31.58
percent interest in Sunoco, LLC, in partnership with an affiliate of its parent company, Energy Transfer Partners.
While primarily engaged in natural gas, natural gas liquids, crude oil and refined products transportation, ETP also
operates a retail and fuel distribution business through its interest in Sunoco, LLC, as well as wholly owned
subsidiary, Sunoco, Inc., which operate approximately 440 convenience stores and retail fuel sites. 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"
5
section of SUN's and ETP's most recently filed annual reports on Form 10-K. 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.
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
Jessica Davila-Burnett, Public Relations Director
(361) 654-4882, jessica.davila-burnett@sunoco.com
- Financial Schedules Follow -
6
SUNOCO LP
CONSOLIDATED BALANCE SHEETS
(in thousands, except units)
(unaudited)
December 31,
2014
June 30,
2015
Current assets:
Cash and cash equivalents $ 67,190 $ 62,771
Advances to affiliates 396,376 198,646
Accounts receivable, net 193,680 226,984
Receivables from affiliates (MACS: $3,484 at December 31, 2014 and $4,862 at June 30, 2015) 24,741 33,138
Inventories, net 325,054 362,469
Other current assets 49,281 21,641
Total current assets 1,056,322 905,649
Property and equipment, net (MACS: $45,340 at December 31, 2014 and $44,554 at June 30, 2015) 1,300,280 1,376,489
Other assets:
Goodwill 863,458 814,819
Intangible assets, net 357,904 451,589
Deferred income taxes 14,893 2,509
Other noncurrent assets (MACS: $3,665 at December 31, 2014 and June 30, 2015) 18,133 27,288
Total assets
$ 3,610,990 $ 3,578,343
Liabilities and equity
Current liabilities:
Accounts payable (MACS: $6 at December 31, 2014 and June 30, 2015) 293,141 382,050
Accounts payable to affiliates 77,721 15,138
Accrued expenses and other current liabilities (MACS: $484 at December 31, 2014 and June 30, 2015) 234,899 193,796
Current maturities of long-term debt (MACS: $8,422 at December 31, 2014 and $8,380 at June 30, 2015) 13,757 13,704
7
Total current liabilities 619,518 604,688
Revolving line of credit 683,378 724,689
Long-term debt (MACS: $48,029 at December 31, 2014 and $46,971 at June 30, 2015) 173,383 969,732
Other noncurrent liabilities (MACS: $1,190 at December 31, 2014 and June 30, 2015) 51,062 52,817
Total liabilities 1,527,341 2,351,926
Commitments and contingencies (Note 12)
Partners' capital:
Limited partner interest:
Common unitholders - public (20,036,329 units issued and outstanding at December 31, 2014 and
June 30, 2015) 874,688 880,698
Common unitholders - affiliated (4,062,848 units issued and outstanding at December 31, 2014 and
4,858,330 June 30, 2015) 31,378 49,930
Subordinated unitholders - affiliated (10,939,436 units issued and outstanding at December 31, 2014
and June 30, 2015) 236,310 239,503
Total partners' capital 1,142,376 1,170,131
Predecessor equity 946,917
Noncontrolling interest (5,644) 56,286
Total equity 2,083,649 1,226,417
Total liabilities and equity
$ 3,610,990 $ 3,578,343
Parenthetical amounts represent assets and liabilities attributable to consolidated variable interest entities of Mid-
Atlantic Convenience Stores, LLC (MACS) as of December 31, 2014 and June 30, 2015.
SUNOCO LP
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except unit and per unit amounts)
(unaudited)
8
Three Months Ended Six Months Ended
June 30,
2014
June 30,
2015
June 30,
2014
June 30,
2015
Predecessor Successor Predecessor Successor
Revenues
Retail motor fuel sales $ $ 189,894 $ $ 350,655
Wholesale motor fuel sales to third parties 507,575 2,770,695 952,141 5,219,550
Wholesale motor fuel sales to affiliates 862,549 1,156,763 1,628,639 1,993,448
Merchandise sales 56,973 104,492
Rental income 4,343 23,868 8,266 46,691
Other income 1,558 7,792 3,566 15,060
Total revenues 1,376,025 4,205,985 2,592,612 7,729,896
Cost of sales
Retail motor fuel cost of sales 169,014 308,578
Wholesale motor fuel cost of sales 1,353,057 3,757,475 2,546,503 6,943,692
Merchandise cost of sales 42,213 77,038
Other 765 510 1,786 1,750
Total cost of sales 1,353,822 3,969,212 2,548,289 7,331,058
Gross profit 22,203 236,773 44,323 398,838
Operating expenses
General and administrative 5,372 27,646 10,242 52,403
Other operating 1,761 48,759 3,795 95,052
Rent 284 11,375 533 21,885
Gain on disposal of assets (36) (30) (36) (156)
Depreciation, amortization and accretion 3,333 33,230 6,659 63,466
Total operating expenses 10,714 120,980 21,193 232,650
Income from operations 11,489 115,793 23,130 166,188
Interest expense, net (1,774) (20,322) (3,276) (27,453)
9
Income before income taxes 9,715 95,471 19,854 138,735
Income tax (expense) benefit (120) 480 (127) (350)
Net income and comprehensive income 9,595 95,951 19,727 138,385
Less: Net income and comprehensive income attributable to
noncontrolling interest 61,084 61,930
Less: Preacquisition income from Sunoco LLC allocated to
general partner 24,516
Net income and comprehensive income
attributable to partners
$ 9,595 $ 34,867 $ 19,727 $ 51,939
Net income per limited partner unit:
Common (basic and diluted) $ 0.43 $ 0.87 $ 0.90 $ 1.31
Common - diluted $ 0.43 $ 0.87 $ 0.89 $ 1.31
Subordinated (basic and diluted) $ 0.43 $ 0.87 $ 0.90 $ 1.31
Weighted average limited partner units
outstanding:
Common units - public 10,966,981 20,036,329 10,965,066 20,036,329
Common units - affiliated 79,308 4,858,330 79,308 4,460,589
Subordinated units - affiliated 10,939,436 10,939,436 10,939,436 10,939,436
Cash distribution per unit $ 0.5197 $ 0.6934 $ 1.0218 $ 1.3384
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.
Beginning in late 2014, with the acquisition of MACS, we began operating our business in two primary operating
segments, wholesale and retail, both of which are included as reportable segments. As a result, the Predecessor
periods operated as one segment, wholesale, and the Successor period operated with our wholesale and retail
segments.
On April 1, 2015 we acquired a 31.58% membership interest in Sunoco LLC. Because we have a controlling financial
10
interest in Sunoco LLC as a result of our 50.1% voting interest our consolidated financial statements include 100%
of Sunoco LLC. The 68.42% membership interest in Sunoco LLC that we do not own is presented as noncontrolling
interest in our consolidated financial statements.
The following table sets forth, for the periods indicated, information concerning key measures we rely on to gauge
our operating performance by segment (in thousands, except for selling price and gross profit per gallon):
Three Months Ended
June 30,
2014 2015
Predecessor Successor
Wholesale Retail Total
Revenues
Retail motor fuel sales (1) $ $ $ 189,894 $ 189,894
Wholesale motor fuel sales to third parties 507,575 2,770,695 2,770,695
Wholesale motor fuel sales to affiliates 862,549 1,156,763 1,156,763
Merchandise sales 56,973 56,973
Rental income 4,343 17,403 6,465 23,868
Other income 1,558 5,349 2,443 7,792
Total revenue 1,376,025 3,950,210 255,775 4,205,985
Gross profit
Retail motor fuel 20,880 20,880
Wholesale motor fuel 17,067 169,983 169,983
Merchandise 14,760 14,760
Rental and other 5,136 22,241 8,909 31,150
Total gross profit $ 22,203 $ 192,224 $ 44,549 $ 236,773
Net income and comprehensive income
attributable to partners (4) $ 9,595 $ 35,830 $ (963) $ 34,867
11
Adjusted EBITDA attributable to partners (4) (5) $ 15,563 $ 40,080 $ 15,416 $ 55,496
Distributable cash flow attributable to partners, as adjusted
(4) (5) $ 13,653 $ 39,293
Operating Data
Total motor fuel gallons sold:
Retail 71,079 71,079
Wholesale (2) 168,574 1,254,751 1,254,751
Wholesale contract affiliated (3) 293,217 595,923 595,923
Motor fuel gross profit (cents per gallon):
Retail 27.4 ¢
Wholesale (2) 4.9 ¢ 8.0 ¢
Wholesale contract affiliated (3) 3.0 ¢ 3.5 ¢
Volume-weighted average for all gallons 3.7 ¢ 7.3 ¢
Retail merchandise margin 25.9 %
(1) Retail motor fuel sales include sales of motor fuel at company operated convenience stores beginning September 1, 2014.
(2) Reflects all other wholesale transactions excluding those pursuant to the Susser and Sunoco, Inc. Distribution Contracts.
(3) Reflects transactions pursuant to the Susser and Sunoco, Inc. Distribution Contracts at set margins as dictated by agreements.
(4) Excludes the noncontrolling interest results of operations related to our consolidated VIE and Sunoco LLC.
(5) 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 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 define
distributable cash flow as Adjusted EBITDA less cash interest expense including the accrual of interest expense related to our 2020 and 2023
Notes which 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 are excluded.
Pro Forma Results of Operations
We have provided below certain supplemental pro forma information for the three and six months ended June 30,
12
2015. The pro forma information gives effect to the 68.42% noncontrolling interest in Sunoco LLC. Pursuant to our
31.58% ownership interest in Sunoco LLC, the Sunoco LP pro forma information reflects only that equity 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 Six Months Ended
June 30, 2015 June 30, 2015
Pro Forma
(unaudited)
(in thousands except gross profit per gallon)
Gross profit
Retail gross profit $ 20,880 $ 42,077
Wholesale gross profit 77,761 132,598
Total fuel gross profit $ 98,641 $ 174,675
Operating data
Motor fuel gallons sold:
Retail 71,079 138,913
Wholesale 559,787 1,120,581
Wholesale contract affiliated 408,072 797,651
Total fuel gallons 1,038,938 2,057,145
Motor fuel gross profit (cents per gallon):
Retail 27.4 ¢ 29.6 ¢
Wholesale 8.2 ¢ 7.6 ¢
Wholesale contract affiliated 3.3 ¢ 3.2 ¢
Volume-weighted average for all gallons 7.6 ¢ 7.4 ¢
13
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 (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
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
by segment for the three months ended June 30, 2014 and 2015 (in thousands):
14
Three Months Ended
June 30,
2014 2015
Predecessor Successor
Wholesale Retail Total
Net income and comprehensive income $ 9,595 $ 96,067 $ (116) $ 95,951
Depreciation, amortization and accretion 3,333 22,074 11,156 33,230
Interest expense, net 1,774 10,405 9,917 20,322
Income tax expense (benefit) 120 (246) (234) (480)
EBITDA 14,822 128,300 20,723 149,023
Non-cash stock based compensation 777 430 49 479
(Gain) loss on disposal of assets (36) (33) 3 (30)
Unrealized loss on commodity derivatives 785 785
Inventory fair value adjustments (7) (49,319) (1,410) (50,729)
Adjusted EBITDA $ 15,563 $ 80,163 $ 19,365 $ 99,528
Adjusted EBITDA attributable to noncontrolling interest 40,083 3,949 44,032
Adjusted EBITDA attributable to partners 15,563 40,080 15,416 55,496
Cash interest expense (6) 1,644 15,088
Current income tax expense (benefit) 105 (259)
Maintenance capital expenditures 161 4,074
Distributable cash flow attributable to partners $ 13,653 $ 36,593
Transaction-related expenses 2,700
Distributable cash flow attributable to partners, as
adjusted
$ 13,653 $ 39,293
15
(6) Reflects the partnership's cash interest paid less the cash interest paid on our VIE debt of $4.0 million.
(7) Due to the change in fuel prices, we recorded a $50.7 million write-up of the LIFO value of fuel inventory during the three months ended June
30, 2015.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sunoco-lp-
announces-2q-2015-financial-and-operating-results-and-9th-consecutive-distribution-increase-300124482.html
SOURCE Sunoco LP
16