NEWS RELEASE
Sunoco LP Announces 4Q and Full Year 2014
Financial and Operating Results
2/18/2015
- 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
1
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.
2
"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
3
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
4
$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.
5
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
6
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
7
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
8
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
9
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)
10
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
11
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
12
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
13
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.
14
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:
15
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:
16
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
17
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
18