Susser Petroleum Partners LP Reports Second Quarter 2014 Results
- Gallons sold increased 19%
- Distributable cash flow increased 15%
- 3.5% sequential increase in distribution declared
- First IDR payment approved
Net income for the quarter was
Revenue for the second quarter totaled
Gross profit for the quarter totaled
Affiliate customers as of
Third-party customers of SUSP included 521 independent dealers under long-term fuel supply agreements, 17 independently operated consignment locations and approximately 1,900 other commercial customers. Total gallons sold to third parties increased year-over-year by 34.9 percent to 168.6 million gallons. Gross profit on these gallons was
"We are pleased to report solid results for the Partnership for the second quarter of 2014, with a 19 percent year-over-year increase in fuel gallons sold and a 31 percent increase in total gross profit," said
"Our Gainesville Fuel and Sac-N-Pac™/3W
"
YTD 2014 Compared to YTD 2013
Revenue for the first six months of 2014 totaled
New Dealer Update
Eleven new contracted dealer sites were added in the second quarter, and three sites were discontinued for a total of 624 third-party dealer and SUSS consignment locations as of
Capital Spending and Financing
SUSP completed drop down transactions for six Stripes® convenience stores during the second quarter, and three more so far in the third quarter bring the year to date total to 16. Since its initial public offering in
Including the Stripes® store purchases, SUSP's gross capital expenditures for the second quarter were
(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 reconciliation to net income for the periods presented. |
Quarterly Distribution
SUSP announced today that the Board of Directors of its general partner has declared its quarterly distribution for the second quarter of 2014 of
The distribution will be paid on
Second Quarter Earnings Conference Call
Forward-Looking Statements
This news release contains "forward-looking statements." These statements are based on current plans, expectations and the anticipated timing and impact of
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
Contacts: |
Susser Petroleum Partners LP |
Mary Sullivan, Chief Financial Officer |
|
(832) 234-3600, msullivan@susser.com |
|
Dennard-Lascar Associates, LLC |
|
Anne Pearson, Senior Vice President |
|
(210) 408-6321, apearson@dennardlascar.com |
Financial statements follow
Financial Statements | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Susser Petroleum Partners LP |
|||||||||||||||
Consolidated Statements of Operations and Comprehensive Income |
|||||||||||||||
Unaudited |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
||||||||||||
(in thousands, except unit and per unit amounts) |
|||||||||||||||
Revenues: |
|||||||||||||||
Motor fuel sales to third parties |
$ |
366,110 |
$ |
507,575 |
$ |
722,872 |
$ |
952,141 |
|||||||
Motor fuel sales to affiliates |
751,304 |
862,549 |
1,482,031 |
1,628,639 |
|||||||||||
Rental income |
2,276 |
4,343 |
3,905 |
8,266 |
|||||||||||
Other income |
1,207 |
1,558 |
2,506 |
3,566 |
|||||||||||
Total revenues |
1,120,897 |
1,376,025 |
2,211,314 |
2,592,612 |
|||||||||||
Cost of sales: |
|||||||||||||||
Motor fuel cost of sales to third parties |
360,032 |
499,246 |
710,997 |
934,969 |
|||||||||||
Motor fuel cost of sales to affiliates |
743,370 |
853,811 |
1,466,679 |
1,611,534 |
|||||||||||
Other |
539 |
765 |
1,126 |
1,786 |
|||||||||||
Total cost of sales |
1,103,941 |
1,353,822 |
2,178,802 |
2,548,289 |
|||||||||||
Gross profit |
16,956 |
22,203 |
32,512 |
44,323 |
|||||||||||
Operating expenses: |
|||||||||||||||
General and administrative |
3,649 |
5,372 |
7,548 |
10,242 |
|||||||||||
Other operating |
568 |
1,761 |
1,199 |
3,795 |
|||||||||||
Rent |
300 |
284 |
504 |
533 |
|||||||||||
Loss (gain) on disposal of assets |
72 |
(36) |
94 |
(36) |
|||||||||||
Depreciation, amortization and accretion |
1,837 |
3,333 |
3,658 |
6,659 |
|||||||||||
Total operating expenses |
6,426 |
10,714 |
13,003 |
21,193 |
|||||||||||
Income from operations |
10,530 |
11,489 |
19,509 |
23,130 |
|||||||||||
Interest expense, net |
(766) |
(1,774) |
(1,449) |
(3,276) |
|||||||||||
Income before income taxes |
9,764 |
9,715 |
18,060 |
19,854 |
|||||||||||
Income tax expense |
(84) |
(120) |
(153) |
(127) |
|||||||||||
Net income and comprehensive income |
$ |
9,680 |
$ |
9,595 |
$ |
17,907 |
$ |
19,727 |
|||||||
Net income per limited partner unit: |
|||||||||||||||
Common (basic) |
$ |
0.44 |
$ |
0.43 |
$ |
0.82 |
$ |
0.90 |
|||||||
Common (diluted) |
$ |
0.44 |
$ |
0.43 |
$ |
0.82 |
$ |
0.89 |
|||||||
Subordinated (basic and diluted) |
$ |
0.44 |
$ |
0.43 |
$ |
0.82 |
$ |
0.90 |
|||||||
Weighted average limited partner units outstanding (diluted): |
|||||||||||||||
Common units - public |
10,925,000 |
10,966,981 |
10,925,000 |
10,965,066 |
|||||||||||
Common units - affiliated |
14,436 |
79,308 |
14,436 |
79,308 |
|||||||||||
Subordinated units - affiliated |
10,939,436 |
10,939,436 |
10,939,436 |
10,939,436 |
|||||||||||
Cash distribution per unit |
$ |
0.4528 |
$ |
0.5197 |
$ |
0.8903 |
$ |
1.0218 |
Consolidated Balance Sheets for Susser Petroleum Partners LP | |||||||
---|---|---|---|---|---|---|---|
Susser Petroleum Partners LP |
|||||||
Consolidated Balance Sheets |
|||||||
December 31, |
June 30, |
||||||
unaudited |
|||||||
(in thousands, except units) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
8,150 |
$ |
6,769 |
|||
Accounts receivable, net of allowance for doubtful accounts of $323 at December 31, 2013, and $528 at June 30, 2014 |
69,005 |
74,212 |
|||||
Receivables from affiliates |
49,879 |
51,727 |
|||||
Inventories, net |
11,122 |
38,971 |
|||||
Other current assets |
66 |
710 |
|||||
Total current assets |
138,222 |
172,389 |
|||||
Property and equipment, net |
180,127 |
239,590 |
|||||
Other assets: |
|||||||
Marketable securities |
25,952 |
— |
|||||
Goodwill |
22,823 |
22,823 |
|||||
Intangible assets, net |
22,772 |
24,292 |
|||||
Other noncurrent assets |
188 |
259 |
|||||
Total assets |
$ |
390,084 |
$ |
459,353 |
|||
Liabilities and equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
110,432 |
$ |
128,464 |
|||
Accrued expenses and other current liabilities |
11,427 |
12,960 |
|||||
Current maturities of long-term debt |
525 |
525 |
|||||
Total current liabilities |
122,384 |
141,949 |
|||||
Revolving line of credit |
156,210 |
232,240 |
|||||
Long-term debt |
29,416 |
3,536 |
|||||
Deferred tax liability, long-term portion |
222 |
207 |
|||||
Other noncurrent liabilities |
2,159 |
2,192 |
|||||
Total liabilities |
310,391 |
380,124 |
|||||
Commitments and contingencies: |
|||||||
Partners' equity: |
|||||||
Limited partners: |
|||||||
Common unitholders - public (10,936,352 units issued and outstanding at December 31, 2013 and 10,941,456 units issued and outstanding at June 30, 2014) |
210,269 |
210,038 |
|||||
Common unitholders - affiliated (79,308 units issued and outstanding at December 31, 2013 and at June 30, 2014) |
1,562 |
1,556 |
|||||
Subordinated unitholders - affiliated (10,939,436 units issued and outstanding at December 31, 2013 and June 30, 2014) |
(132,138) |
(132,365) |
|||||
Total equity |
79,693 |
79,229 |
|||||
Total liabilities and equity |
$ |
390,084 |
$ |
459,353 |
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.
Consolidated Balance Sheets | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
||||||||||||
(in thousands, except for selling price and gross profit per gallon) |
|||||||||||||||
Revenues: |
|||||||||||||||
Motor fuel sales to third parties (1) |
$ |
366,110 |
$ |
507,575 |
$ |
722,872 |
$ |
952,141 |
|||||||
Motor fuel sales to affiliates |
751,304 |
862,549 |
1,482,031 |
1,628,639 |
|||||||||||
Rental income |
2,276 |
4,343 |
3,905 |
8,266 |
|||||||||||
Other income |
1,207 |
1,558 |
2,506 |
3,566 |
|||||||||||
Total revenue (1) |
1,120,897 |
1,376,025 |
2,211,314 |
2,592,612 |
|||||||||||
Gross profit: |
|||||||||||||||
Motor fuel gross profit to third parties |
6,078 |
8,329 |
11,875 |
17,172 |
|||||||||||
Motor fuel gross profit to affiliates |
7,934 |
8,738 |
15,352 |
17,105 |
|||||||||||
Rental income |
2,276 |
4,343 |
3,905 |
8,266 |
|||||||||||
Other |
668 |
793 |
1,380 |
1,780 |
|||||||||||
Total gross profit |
$ |
16,956 |
$ |
22,203 |
$ |
32,512 |
$ |
44,323 |
|||||||
Net income |
$ |
9,680 |
$ |
9,595 |
$ |
17,907 |
$ |
19,727 |
|||||||
Adjusted EBITDA (2) |
$ |
12,840 |
$ |
15,563 |
$ |
24,067 |
$ |
31,237 |
|||||||
Distributable cash flow (2) |
$ |
11,905 |
$ |
13,653 |
$ |
22,340 |
$ |
27,690 |
|||||||
Operating Data: |
|||||||||||||||
Total motor fuel gallons sold: |
|||||||||||||||
Third-party |
124,943 |
168,574 |
240,773 |
324,169 |
|||||||||||
Affiliated gallons |
264,098 |
293,217 |
515,150 |
571,013 |
|||||||||||
Average wholesale selling price per gallon |
$ |
2.87 |
$ |
2.97 |
$ |
2.92 |
$ |
2.88 |
|||||||
Motor fuel gross profit (cents per gallon): |
|||||||||||||||
Third-party |
4.9 |
¢ |
4.9 |
¢ |
4.9 |
¢ |
5.3 |
¢ |
|||||||
Affiliated |
3.0 |
¢ |
3.0 |
¢ |
3.0 |
¢ |
3.0 |
¢ |
|||||||
Volume-weighted average for all gallons |
3.6 |
¢ |
3.7 |
¢ |
3.6 |
¢ |
3.8 |
¢ |
(1) |
In December 2013, we revised our presentation of fuel taxes on motor fuel sales at our consignment locations to present such fuel taxes gross in motor fuel sales. Prior years' motor fuel sales have been adjusted to reflect this revision which also affects average wholesale selling price. |
|
(2) |
We define EBITDA as net income before net interest expense, income tax expense and depreciation and amortization 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, cash state franchise 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. |
|
We believe EBITDA, Adjusted EBITDA and distributable cash flow are useful to investors in evaluating our operating performance because: |
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|
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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: |
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|
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The following tables present a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow: |
Reconciliation of net income to EBITDA | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
||||||||||||
Net income |
$ |
9,680 |
$ |
9,595 |
$ |
17,907 |
$ |
19,727 |
|||||||
Depreciation, amortization and accretion |
1,837 |
3,333 |
3,658 |
6,659 |
|||||||||||
Interest expense, net |
766 |
1,774 |
1,449 |
3,276 |
|||||||||||
Income tax expense |
84 |
120 |
153 |
127 |
|||||||||||
EBITDA |
12,367 |
14,822 |
23,167 |
29,789 |
|||||||||||
Non-cash stock based compensation |
401 |
777 |
806 |
1,484 |
|||||||||||
Loss (gain) on disposal of assets and impairment charge |
72 |
(36) |
94 |
(36) |
|||||||||||
Adjusted EBITDA |
$ |
12,840 |
$ |
15,563 |
$ |
24,067 |
$ |
31,237 |
|||||||
Cash interest expense |
671 |
1,644 |
1,258 |
3,050 |
|||||||||||
State franchise tax expense (cash) |
72 |
105 |
141 |
173 |
|||||||||||
Maintenance capital expenditures |
192 |
161 |
328 |
324 |
|||||||||||
Distributable cash flow |
$ |
11,905 |
$ |
13,653 |
$ |
22,340 |
$ |
27,690 |
SOURCE