Sunoco LP Announces 2Q 2015 Financial and Operating Results and 9th Consecutive Distribution Increase


- 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.

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 .

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

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.

______________

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 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" 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 -

 

Balance Sheets

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

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.

Operations and Comprehensive Income Statements

SUNOCO LP

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(in thousands, except unit and per unit amounts)

(unaudited)

 
   

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)

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 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):

Key Operating Metrics
   

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

 

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

%

       
                                 
                                   

____________________________ 

Pro Forma Results of Operations

We have provided below certain supplemental pro forma information for the three and six months ended June 30, 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.

Pro Forma Results of Operations
 

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

¢

                   

 

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):

Reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow
   

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

 

To view the original version on PR Newswire, visit:https://www.prnewswire.com/news-releases/sunoco-lp-announces-2q-2015-financial-and-operating-results-and-9th-consecutive-distribution-increase-300124482.html

SOURCE Sunoco LP

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