NEWS RELEASE
Sunoco LP Announces 3Q 2015 Financial and
Operating Results and 10th Consecutive Distribution
Increase
11/4/2015
- Strong overall quarter with pro forma adjusted EBITDA attributable to partners of $148.7 million
- Distribution increased 7.5 percent versus 2Q 2015 and an approximate 37 percent increase versus the prior year
period
- Acquisition of Susser Holdings Corporation in 3Q contributed to strong earnings and increased SUN's exposure to
high-growth retail markets
- Distributable cash flow coverage ratio of 2.0x for 3Q
Conference Call Scheduled for 9 a.m. CT (10:00 a.m. ET) on Thursday, November 5
HOUSTON, Nov. 4, 2015 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced
financial and operating results for the three months ended September 30, 2015.
Pro forma Adjusted EBITDA attributable to partners totaled $148.7 million, compared with Adjusted EBITDA
attributable to partners of $14.0 million in the third quarter of 2014. Third quarter pro forma Adjusted EBITDA
attributable to partners excludes July pre-acquisition earnings for Susser Holdings Corporation and transaction-
related expenses.
Distributable cash flow attributable to partners, as adjusted, was $112.4 million, compared to $12.2 million a year
earlier, and distributable cash flow per common unit was $1.77. The favorable year-over-year comparisons
primarily reflect the contributions from the dropdown acquisitions of Susser Holdings Corporation ("Susser") in July
2015, 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 affiliate, Energy Transfer Partners, L.P. (NYSE: ETP), along with the
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purchase of Aloha Petroleum in December 2014 and the Aziz Quick Stop stores in August.
On November 3, the Board of Directors of SUN's general partner declared a distribution for the third quarter of
2015 of $0.7454 per unit, which corresponds to $2.9816 per unit on an annualized basis. This represents a 7.5
percent increase compared to the distribution for the second quarter of 2015 and an approximate 37 percent
increase compared with the third quarter of 2014. This is the Partnership's 10th consecutive quarterly distribution
increase. The distribution will be paid on November 27 to unitholders of record on November 17. SUN achieved a
2.0 times distribution coverage ratio for the third quarter.
Revenue was $4.5 billion, up 243.9 percent compared to $1.3 billion in the third quarter of 2014. The increase was
the result of the contribution of merchandise and retail fuel sales from the Susser, MACS and Aloha convenience
stores, the wholesale fuel distribution sales from MACS, Aloha Petroleum and SUN's interest in Sunoco, LLC on a
consolidated basis and higher rental income.
Total gross profit was $381.1 million, compared to $21.9 million in the third quarter of 2014. Key drivers of the
increase were the contributions from the previously mentioned acquisitions, which resulted in higher-margin retail
fuel gallons and merchandise being added to the overall sales mix.
Net income attributable to partners was $27.5 million, or $0.30 per diluted unit, versus $1.0 million, or $0.04 per
diluted unit, in the third quarter of last year.
On a weighted average basis, excluding non-controlling interest, fuel margin for all gallons sold increased to 20.6
cents per gallon, compared to 3.8 cents per gallon a year ago. Sales of higher margin retail gallons by Susser, 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.
Adjusted EBITDA attributable to partners related to the wholesale segment was $76.4 million in the third quarter.
Excluding the non-controlling interest, total wholesale gallons sold in the third quarter were 698.8 million,
compared with 468.4 million in the third quarter of last year, an increase of 49.2 percent. This includes gallons sold
to affiliate-operated convenience stores, consignment stores and third-party customers, including independent
dealers, fuel distributors and commercial customers.
As a result of the Susser Holdings acquisition which converted legacy Susser wholesale affiliate volumes to retail
volumes, motor fuel gallons sold to affiliates decreased to 90.4 million gallons during the third quarter of 2015.
Affiliate customers for the quarter included Sunoco retail fuel and convenience store sites operated by a subsidiary
of ETP and that currently remain at ETP.
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Other third-party wholesale gallons increased from a year ago by 267.4 percent to 608.4 million gallons related to
the acquisitions of MACS, Aloha and 31.58 percent of Sunoco LLC. Gross profit on these gallons was 15.2 cents per
gallon, compared to 5.3 cents per gallon a year earlier, driven by the change in customer mix related to the
acquisitions.
Adjusted EBITDA attributable to partners related to the retail segment, including both fuel and merchandise, was
$95.3 million in the third quarter. Total retail gallons sold during the third quarter totaled 353.6 million gallons on
which the Partnership earned 34.1 cents per gallon. Merchandise sales totaled $429.9 million and contributed
$142.5 million of gross profit at a margin of approximately 33.2%.
Retail gallons sold by the newly acquired Susser locations during the third quarter totaled 300.6 million gallons.
Gross profit on these gallons was $86.0 million. Merchandise sales from these locations totaled $368.6 million and
contributed $127.3 million of gross profit. On a same store sales basis, the retail business in the Southwest
recorded a 2.7 percent increase in merchandise sales and a 1.9 percent decline in fuel gallons for the quarter.
Excluding markets that are directly impacted by lower oil and gas activity, SUN achieved a 4.7 percent increase in
merchandise sales and a 0.1 percent increase in fuel gallons, on a same store basis. As of September 30, SUN
operated 706 retail convenience stores and fuel outlets in Texas, Oklahoma and New Mexico.
The remaining retail business is comprised of locations from the MACS and Aloha acquisitions. On a same store
sale basis, the MACS and Aloha retail business achieved 2.5 percent growth in fuel gallons and 15 percent on
merchandise for the quarter. As of September 30, SUN operated 157 retail convenience stores and fuel outlets in
Virginia, Hawaii, Tennessee, Maryland and Georgia.
SUN's other recent accomplishments include the following:
On July 31 SUN completed the acquisition of Susser Holdings Corporation from affiliates of ETP in a
transaction valued at approximately $1.93 billion. SUN paid approximately $967 million in cash and issued to
ETP's subsidiaries approximately 21.98 million Class B SUN Units valued at $967 million. These units were
converted to common units on August 19, 2015. The Susser acquisition was accounted for as a transaction
between entities under common control, which requires SUN to retrospectively adjust its financial statements
to include the balances and operations of Susser from September 1, 2014, the date of common control.
In August, SUN completed the acquisition of 27 Aziz Quick Stop convenience stores in South Texas and is in
the process of rebranding most of the stores to the Stripes convenience store brand. The Partnership also
expects to complete the previously announced acquisition of a wholesale motor fuel distribution business
serving the Northeastern United States for $57 million, plus inventory value, in the fourth quarter. This
acquisition is expected to be immediately accretive to SUN with respect to distributable cash flow and will be
funded using amounts available under SUN's revolving credit facility.
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On July 20, in connection with the Susser acquisition, SUN issued $600 million of 5.5 percent senior notes due
2020 through an upsized private offering that raised net proceeds of $592.5 million. The Partnership also
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.
As of September 30, SUN had outstanding borrowings under its $1.5 billion revolving credit facility of $875.0
million (and $11.8 million in standby letters of credit) and its credit ratio, as defined by the credit agreement,
was 4.4 times.
SUN's gross capital expenditures for the third quarter excluding acquisitions totaled $94.5 million.
An analysis of SUN's segment results and other supplementary data is provided after the financial tables shown
below.
Third Quarter 2015 Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, November 5, at 9:00 a.m. CT (10:00 a.m. ET) to
discuss third 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 November 12 by calling 201-612-7415 and using the access code
13622354#.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates more than 850 convenience stores and retail
fuel sites and distributes motor fuel to c-stores, independent dealers, commercial customers and distributors
located in 30 states at approximately 6,800 sites, both directly and through our 31.6 percent interest in Sunoco, LLC,
owned in partnership with Energy Transfer Partners (NYSE: ETP). Our parent -- Energy Transfer Equity (NYSE: ETE) --
owns SUN's general partner and incentive distribution rights. ETP owns a 50.8% limited partner interest. For more
information, visit the Sunoco LP website at www.SunocoLP.com
Forward-Looking Statements
This press release may include certain statements concerning expectations for the future that are forward-looking
statements as defined by federal law. Such forward-looking statements are subject to a variety of known and
unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond
management's control. An extensive list of factors that can affect future results are discussed in the Partnership's
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Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange
Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect
new information or events.
The information contained in this press release is available on our website at www.SunocoLP.com
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@susser.com
- Financial Schedules Follow –
SUNOCO LP
CONSOLIDATED BALANCE SHEETS
(in thousands, except units)
(unaudited)
December 31,
2014
September
30, 2015
5
2014 30, 2015
Assets
Current assets:
Cash and cash equivalents $ 125,426 $ 47,773
Advances to affiliates 396,376 242,639
Accounts receivable, net 257,065 317,840
Receivables from affiliates (MACS: $3,484 at December 31, 2014 and $5,549 at September 30, 2015) 4,941 25,222
Inventories, net 440,294 350,613
Other current assets 72,557 65,782
Total current assets 1,296,659 1,049,869
Property and equipment, net (MACS: $45,340 at December 31, 2014 and $44,161 at September 30, 2015) 2,081,126 2,298,004
Other assets:
Goodwill 1,854,436 1,799,044
Intangible assets, net 893,455 980,591
Other noncurrent assets (MACS: $3,665 at December 31, 2014 and September 30, 2015) 35,568 52,085
Total assets
$ 6,161,244 $ 6,179,593
Liabilities and equity
Current liabilities:
Accounts payable (MACS: $6 at December 31, 2014 and September 30, 2015) $ 383,496 $ 439,158
Accounts payable to affiliates 56,969 35,449
Accrued expenses and other current liabilities (MACS: $484 at December 31, 2014 and September 30,
2015) 291,047 253,777
Current maturities of long-term debt (MACS: $8,422 at December 31, 2014 and $8,393 at September
30, 2015) 13,772 13,762
Total current liabilities 745,284 742,146
Revolving line of credit 683,378 875,000
Long-term debt (MACS: $48,029 at December 31, 2014 and $46,400 at September 30, 2015) 408,826 1,568,447
Deferred income tax liability 391,332 419,303
Other noncurrent liabilities (MACS: $1,190 at December 31, 2014 and September 30, 2015) 89,268 95,552
Total liabilities 2,318,088 3,700,448
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Commitments and contingencies (Note 13)
Partners' capital:
Limited partner interest:
Common unitholders - public (20,036,329 units issued and outstanding at December 31, 2014 and
25,536,329 at September 30, 2015) 874,688 1,092,954
Common unitholders - affiliated (4,062,848 units issued and outstanding at December 31, 2014
and 26,837,310 at September 30, 2015) 27,459 1,267,056
Subordinated unitholders - affiliated (10,939,436 units issued and outstanding at December 31,
2014 and September 30, 2015) 74,991
Class A unitholders - held by subsidiary (no units issued or outstanding at December 31, 2014 and
11,018,744 at September 30, 2015)
Total partners' capital 902,147 2,435,001
Predecessor equity 2,946,653
Noncontrolling interest (5,644) 44,144
Total equity 3,843,156 2,479,145
Total liabilities and equity
$ 6,161,244 $ 6,179,593
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 September 30, 2015.
SUNOCO LP
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except unit and per unit amounts)
(unaudited)
July 1, 2014
through August
31, 2014
September 1, 2014
through September 30,
2014
Three Months
Ended September
30, 2015
Predecessor Successor
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Revenues
Retail motor fuel sales $ $ 350,689 $ 854,140
Wholesale motor fuel sales to third parties 323,281 1,021,267 2,664,186
Wholesale motor fuel sales to affiliates 571,755 271,726 500,362
Merchandise sales 115,070 429,891
Rental income 3,424 2,531 18,411
Other 1,117 9,300 20,327
Total revenues 899,577 1,770,583 4,487,317
Cost of sales
Retail motor fuel cost of sales 326,538 740,632
Wholesale motor fuel cost of sales 882,666 1,300,425 3,076,942
Merchandise cost of sales 78,091 287,364
Other 553 426 1,232
Total cost of sales 883,219 1,705,480 4,106,170
Gross profit 16,358 65,103 381,147
Operating expenses
General and administrative 6,833 10,844 42,752
Other operating 1,169 55,025 183,623
Rent 196 5,048 23,586
Loss (gain) on disposal of assets (3) (34) 696
Depreciation, amortization and accretion 3,798 13,309 45,601
Total operating expenses 11,993 84,192 296,258
Income from operations 4,365 (19,089) 84,889
Interest expense, net (1,491) (3,371) (28,517)
Income before income taxes 2,874 (22,460) 56,372
Income tax expense (91) (980) (28,972)
Net income (loss) and comprehensive
income (loss) 2,783 (23,440) 27,400
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Less: Net loss and comprehensive loss attributable
to noncontrolling interest (12,142)
Less: Preacquisition income allocated to general
partner (21,684) 11,998
Net income (loss) and comprehensive
income (loss) attributable to partners
$ 2,783 $ (1,756) $ 27,544
Net income (loss) per limited partner
unit:
Common (basic and diluted) $ 0.13 $ (0.09) $ 0.30
Subordinated (basic and diluted) $ 0.13 $ (0.09) $ 0.53
Weighted average limited partner units
outstanding:
Common units - public 10,957,974 10,974,491 24,340,677
Common units - affiliated 79,308 79,308 19,431,349
Subordinated units - affiliated 10,939,436 10,939,436 10,939,436
Cash distribution per unit $ $ 0.5457 $ 0.7454
SUNOCO LP
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except unit and per unit amounts)
(unaudited)
January 1, 2014
through August 31,
2014
September 1, 2014
through September 30,
2014
Nine Months
Ended September
30, 2015
Predecessor Successor
Revenues
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Retail motor fuel sales $ $ 350,689 $ 2,538,495
Wholesale motor fuel sales to third parties 1,275,422 1,021,267 8,021,741
Wholesale motor fuel sales to affiliates 2,200,394 271,726 1,391,145
Merchandise sales 115,070 1,195,306
Rental income 11,690 2,531 54,202
Other 4,683 9,300 59,834
Total revenues 3,492,189 1,770,583 13,260,723
Cost of sales
Retail motor fuel cost of sales 326,538 2,281,887
Wholesale motor fuel cost of sales 3,429,169 1,300,425 9,048,913
Merchandise cost of sales 78,091 801,231
Other 2,339 426 3,744
Total cost of sales 3,431,508 1,705,480 12,135,775
Gross profit 60,681 65,103 1,124,948
Operating expenses
General and administrative 17,075 10,844 131,175
Other operating 4,964 55,025 504,813
Rent 729 5,048 70,097
Loss (gain) on disposal of assets (39) (34) 1,531
Depreciation, amortization and accretion 10,457 13,309 144,128
Total operating expenses 33,186 84,192 851,744
Income from operations 27,495 (19,089) 273,204
Interest expense, net (4,767) (3,371) (57,692)
Income before income taxes 22,728 (22,460) 215,512
Income tax expense (218) (980) (43,657)
Net income (loss) and comprehensive
income (loss) 22,510 (23,440) 171,855
Less: Net income and comprehensive income
attributable to noncontrolling interest 49,788
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Less: Preacquisition income (loss) allocated to
general partner (21,684) 64,789
Net income (loss) and comprehensive
income (loss) attributable to partners
$ 22,510 $ (1,756) $ 57,278
Net income (loss) per limited partner
unit:
Common (basic and diluted) $ 1.02 $ (0.09) $ 0.97
Subordinated (basic and diluted) $ 1.02 $ (0.09) $ 1.22
Weighted average limited partner units
outstanding:
Common units - public 10,944,309 10,974,491 21,486,878
Common units - affiliated 79,308 79,308 9,507,137
Subordinated units - affiliated 10,939,436 10,939,436 10,939,436
Cash distribution per unit $ 1.0218 $ 0.5457 $ 2.0838
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 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 three month period ended
September 30, 2014 includes retail operations for the month of September 2014, only.
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 (in thousands, except for gross profit per gallon):
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Three Months ended September 30,
2014 2015
Wholesale
(2) Retail (2) Total (1) Wholesale Retail Total
(Combined)
Revenues
Retail motor fuel sales $ $ 350,689 $ 350,689 $ $ 854,140 $ 854,140
Wholesale motor fuel sales
to third parties 1,344,548 1,344,548 2,664,186 2,664,186
Wholesale motor fuel sales
to affiliates 843,481 843,481 500,362 500,362
Merchandise sales 115,070 115,070 429,891 429,891
Rental income 5,710 245 5,955 11,332 7,079 18,411
Other income 5,025 5,392 10,417 12,054 8,273 20,327
Total revenue 2,198,764 471,396 2,670,160 3,187,934 1,299,383 4,487,317
Gross profit
Retail motor fuel 24,151 24,151 113,508 113,508
Wholesale motor fuel 4,938 4,938 87,606 87,606
Merchandise 36,979 36,979 142,527 142,527
Rental and other 9,757 5,636 15,393 27,787 9,719 37,506
Total gross profit $ 14,695 $ 66,766 $ 81,461 $ 115,393 $ 265,754 $ 381,147
Net income and
comprehensive income
attributable to partners
(6) $ 4,030 $ (3,003) $ 1,027 $ 21,398 $ 6,146 $ 27,544
Adjusted EBITDA attributable
to partners (6) (7) $ 24,542 $ 17,023 $ 41,565 $ 76,397 $ 95,271 $ 171,668
Distributable cash flow
attributable to partners, as
adjusted (6) (7) $ 12,242 $ 112,378
Operating Data
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Total motor fuel gallons sold:
Retail 107,352 107,352 353,641 353,641
Wholesale (3) 534,502 534,502 1,308,781 1,308,781
Wholesale contract affiliated
(4) 290,912 290,912 286,215 286,215
Motor fuel gross profit (cents
per gallon) (5):
Retail 23.3¢ 34.1¢
Wholesale (3) 6.7¢ 12.5¢
Wholesale contract affiliated
(4) 3.3¢ 4.0¢
Volume-weighted average for
all gallons 7.6¢ 15.2¢
Retail merchandise margin 32.1% 33.2%
(1) Reflects combined results of the Predecessor period from July 1, 2014 through August 31, 2014, and the Successor period from September 1,
2014 to September 30, 2014. The impact from "push down" accounting related to the ETP Merger resulted in a $0.2 million increase in
depreciation, amortization and accretion expense.
(2) Reflects MACS and Sunoco LLC wholesale operations and MACS and Susser retail operations, beginning September 1, 2014.
(3) Reflects all wholesale transactions excluding those pursuant to the Susser and Sunoco, Inc. Distribution Contracts.
(4) Reflects transactions pursuant to the Susser Distribution Contract for July 1, 2014 through August 31, 2014 and the Sunoco, Inc. Distribution
Contract at set margins as dictated by the agreements.
(5) Excludes impact of inventory fair value adjustments consistent with our definition of Adjusted EBITDA.
(6) Excludes the noncontrolling interest results of operations related to our consolidated variable interest entities ("VIE"s and Sunoco LLC.
(7) 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
Senior 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.
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.
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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
for the three months ended September 30, 2014 and 2015 (in thousands):
Three Months ended September 30,
2014 2015
Wholesale
(2)
Retail
(2)
Total (1) Wholesale Retail Total
(Combined)
Net income and comprehensive
income $ (25,524) $ 4,867 $ (20,657) $ 12,847 $ 14,553 $ 27,400
Depreciation, amortization and
accretion 9,056 8,051 17,107 13,571 32,030 45,601
Interest expense, net 2,465 2,397 4,862 12,338 16,179 28,517
Income tax expense (benefit) 1,062 9 1,071 39 28,933 28,972
EBITDA (12,941) 15,324 2,383 38,795 91,695 130,490
Non-cash stock compensation
expense 3,537 2,081 5,618 1,398 496 1,894
Loss on disposal of assets &
impairment charge (92) 55 (37) 920 (224) 696
Unrealized gains on
commodity derivatives 794 794 735 735
Inventory fair value
adjustments (9) 47,535 893 48,428 87,307 7,240 94,547
Adjusted EBITDA $ 38,833 $ 18,353 $ 57,186 $ 129,155 $ 99,207 $ 228,362
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Adjusted EBITDA attributable to
noncontrolling interest 14,291 1,330 15,621 52,758 3,936 56,694
Adjusted EBITDA
attributable to partners 24,542 17,023 41,565 76,397 95,271 171,668
Cash interest expense (8) 1,878 27,419
Income tax expense (current)
(benefit) 99 537
Maintenance capital
expenditures 174 8,351
Preacquisition earnings 27,610 23,841
Distributable cash flow
attributable to partners $ 11,804 $ 111,520
Transaction-related expenses 438 858
Distributable cash flow
attributable to partners,
as adjusted
$ 12,242 $ 112,378
(8) Reflects the partnership's cash interest paid less the cash interest paid on our VIE debt of $2.3 million during the three month period ended
September 30, 2015.
(9) Due to the change in fuel prices, we recorded a $48.4 million and $94.5 million write-down of the value of fuel inventory during the three
months ended September 30, 2014 and 2015, respectively.
Pro Forma Results of Operations
We have provided below certain supplemental pro forma information for the three and nine months ended
September 30, 2015. The pro forma information gives effect to the 68.42% noncontrolling interest in Sunoco LLC.
Pursuant to our 31.58% membership 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.
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Three Months Ended
September 30, 2015
Nine Months Ended
September 30, 2015
Pro Forma
(unaudited)
(in thousands except gross profit per gallon)
Gross profit
Retail gross profit $ 113,508 $ 256,608
Wholesale gross profit 63,388 203,041
Total pro forma fuel gross profit
$ 176,896 $ 459,649
Operating data
Motor fuel gallons sold:
Retail 353,641 1,060,297
Wholesale 608,397 1,788,579
Wholesale contract affiliated 90,387 262,367
Total pro forma fuel gallons 1,052,425 3,111,243
Motor fuel gross profit (cents per gallon) (1):
Retail 34.1¢ 24.4¢
Wholesale 15.2¢ 11.3¢
Wholesale contract affiliated 4.0¢ 4.0¢
Pro forma volume-weighted average for all gallons 20.6¢ 15.2¢
(1) Excludes impact of inventory fair value adjustments consistent with the definition of Adjusted EBITDA. For the three months ended September
30, 2015 the retail and wholesale pro forma inventory fair value adjustments were $7.2 million and $32.6 million, respectively. For the nine
months ended September 30, 2015 the retail and wholesale pro forma inventory fair value adjustments were $2.1 million and $10.4 million,
respectively.
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SUNOCO LP
SUPPLEMENTAL INFORMATION ON CAPITAL EXPENDITURES
(Tabular amounts in millions)
(unaudited)
We currently expect capital expenditures for the full year 2015, excluding acquisitions but including the additional capital spending related to our
31.58% interest in Sunoco LLC, and ownership interest in Susser effective with respective dates of acquisition to be within the following ranges (in
millions):
Low High
Maintenance $ 40 50
Growth 220 240
Total
$ 260 290
On a 100% consolidated basis, our maintenance capital expenditures would range from $45 to $55 million and our growth capital expenditures
would range from $240 to $260 million. The above growth capital spending estimate includes the 35 to 40 new Stripes convenience stores that are
planned to be built in 2015.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sunoco-lp-
announces-3q-2015-financial-and-operating-results-and-10th-consecutive-distribution-increase-300172916.html
SOURCE Sunoco LP
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