PR Newswire
DLC, Feb. 22, 2017
DLC, Feb. 22, 2017
SUNOCO LP | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
December 31, |
December 31, | ||||||
(in millions, except units) | |||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
119 |
$ |
73 |
|||
Advances to affiliates |
— |
366 |
|||||
Accounts receivable, net |
539 |
308 |
|||||
Receivables from affiliates |
3 |
8 |
|||||
Inventories, net |
573 |
467 |
|||||
Other current assets |
155 |
46 |
|||||
Total current assets |
1,389 |
1,268 |
|||||
Property and equipment, net |
3,373 |
3,155 |
|||||
Other assets: |
|||||||
Goodwill |
2,618 |
3,111 |
|||||
Intangible assets, net |
1,255 |
1,260 |
|||||
Other noncurrent assets |
66 |
48 |
|||||
Total assets |
$ |
8,701 |
$ |
8,842 |
|||
Liabilities and equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
616 |
$ |
434 |
|||
Accounts payable to affiliates |
109 |
15 |
|||||
Advances from affiliates |
87 |
— |
|||||
Accrued expenses and other current liabilities |
372 |
308 |
|||||
Current maturities of long-term debt |
5 |
5 |
|||||
Total current liabilities |
1,189 |
762 |
|||||
Revolving line of credit |
1,000 |
450 |
|||||
Long-term debt, net |
3,509 |
1,503 |
|||||
Deferred tax liability |
643 |
694 |
|||||
Other noncurrent liabilities |
164 |
170 |
|||||
Total liabilities |
6,505 |
3,579 |
|||||
Commitments and contingencies |
|||||||
Equity: |
|||||||
Limited partners: |
|||||||
Common unitholders - public (52,430,220 units issued and outstanding as of December 31, 2016 and 49,588,960 units issued and outstanding as of December 31, 2015) |
1,467 |
1,769 |
|||||
Common unitholders - affiliated (45,750,826 units issued and outstanding as of December 31, 2016 and 37,776,746 units issued and outstanding as of December 31, 2015) |
729 |
1,276 |
|||||
Class A unitholders - held by subsidiary (no units issued and outstanding as of December 31, 2016 and 11,018,744 units issued and outstanding as of December 31, 2015) |
— |
— |
|||||
Class C unitholders - held by subsidiary (16,410,780 units issued and outstanding as of December 31, 2016 and no units issued and outstanding as of December 31, 2015) |
— |
— |
|||||
Total partners' capital |
2,196 |
3,045 |
|||||
Predecessor equity |
— |
2,218 |
|||||
Total equity |
2,196 |
5,263 |
|||||
Total liabilities and equity |
$ |
8,701 |
$ |
8,842 |
SUNOCO LP | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||
Successor |
Predecessor | |||||||||||||||
Year Ended |
Year Ended |
September 1, 2014 December 31, 2014 |
January 1, 2014 through August 31, 2014 | |||||||||||||
(dollars in millions, except unit and per unit amounts) | ||||||||||||||||
Revenues: |
||||||||||||||||
Retail motor fuel |
$ |
5,261 |
$ |
5,891 |
$ |
2,377 |
$ |
— |
||||||||
Wholesale motor fuel sales to third parties |
7,812 |
10,104 |
4,235 |
1,275 |
||||||||||||
Wholesale motor fuel sales to affiliates |
62 |
20 |
— |
2,200 |
||||||||||||
Merchandise |
2,272 |
2,178 |
651 |
— |
||||||||||||
Rental income |
90 |
81 |
25 |
12 |
||||||||||||
Other |
201 |
186 |
55 |
5 |
||||||||||||
Total revenues |
15,698 |
18,460 |
7,343 |
3,492 |
||||||||||||
Cost of sales: |
||||||||||||||||
Retail motor fuel cost of sales |
4,650 |
5,256 |
2,106 |
— |
||||||||||||
Wholesale motor fuel cost of sales |
7,261 |
9,717 |
4,204 |
3,429 |
||||||||||||
Merchandise cost of sales |
1,556 |
1,498 |
455 |
— |
||||||||||||
Other |
12 |
5 |
2 |
2 |
||||||||||||
Total cost of sales |
13,479 |
16,476 |
6,767 |
3,431 |
||||||||||||
Gross profit |
2,219 |
1,984 |
576 |
61 |
||||||||||||
Operating expenses: |
||||||||||||||||
General and administrative |
269 |
217 |
91 |
17 |
||||||||||||
Other operating |
1,059 |
1,016 |
320 |
5 |
||||||||||||
Rent |
140 |
140 |
42 |
1 |
||||||||||||
Loss (gain) on disposal of assets and impairment charge |
680 |
(1) |
(1) |
— |
||||||||||||
Depreciation, amortization and accretion |
319 |
278 |
86 |
10 |
||||||||||||
Total operating expenses |
2,467 |
1,650 |
538 |
33 |
||||||||||||
Income (loss) from operations |
(248) |
334 |
38 |
28 |
||||||||||||
Interest expense, net |
189 |
88 |
11 |
5 |
||||||||||||
Income (loss) before income taxes |
(437) |
246 |
27 |
23 |
||||||||||||
Income tax expense (benefit) |
(31) |
52 |
80 |
— |
||||||||||||
Net income (loss) and comprehensive income (loss) |
(406) |
194 |
(53) |
23 |
||||||||||||
Less: Net income and comprehensive income attributable to noncontrolling interest |
— |
4 |
1 |
— |
||||||||||||
Less: Preacquisition income (loss) allocated to general partner |
— |
103 |
(88) |
— |
||||||||||||
Net income (loss) and comprehensive income (loss) attributable to partners |
(406) |
87 |
34 |
23 |
||||||||||||
Net income (loss) per limited partner unit: |
||||||||||||||||
Common - basic and diluted |
$ |
(5.26) |
$ |
1.11 |
$ |
0.85 |
$ |
1.02 |
||||||||
Subordinated - basic and diluted |
$ |
— |
$ |
1.40 |
$ |
0.85 |
$ |
1.02 |
||||||||
Weighted average limited partner units outstanding: |
||||||||||||||||
Common units - public (basic) |
49,785,543 |
24,550,388 |
20,493,065 |
10,944,309 |
||||||||||||
Common units - public (diluted) |
49,813,848 |
24,572,126 |
20,499,447 |
10,969,437 |
||||||||||||
Common units - affiliated (basic and diluted) |
43,789,987 |
15,703,525 |
79,308 |
79,308 |
||||||||||||
Subordinated units - affiliated (basic and diluted) |
— |
10,010,333 |
10,939,436 |
10,939,436 |
||||||||||||
Cash distribution per unit |
$ |
3.29 |
$ |
2.89 |
$ |
1.15 |
$ |
1.02 |
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. We operate our business in two primary operating divisions, wholesale and retail, both of which are included as reportable segments.
Key operating metrics set forth below are presented as of and for the years and three months ended December 31, 2016 and December 31, 2015 and have been derived from our historical consolidated financial statements.
The accompanying footnotes to the following four key operating metrics tables can be found immediately preceding our capital spending discussion.
Year Ended December 31, | ||||||||||||||||||||||||
2016 |
2015 | |||||||||||||||||||||||
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
(dollars and gallons in millions, except motor fuel pricing and gross profit per gallon) | ||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Retail motor fuel |
$ |
— |
$ |
5,261 |
$ |
5,261 |
$ |
— |
$ |
5,891 |
$ |
5,891 |
||||||||||||
Wholesale motor fuel sales to third parties |
7,812 |
— |
7,812 |
10,104 |
— |
10,104 |
||||||||||||||||||
Wholesale motor fuel sale to affiliates |
62 |
— |
62 |
20 |
— |
20 |
||||||||||||||||||
Merchandise |
— |
2,272 |
2,272 |
— |
2,178 |
2,178 |
||||||||||||||||||
Rental income |
76 |
14 |
90 |
52 |
29 |
81 |
||||||||||||||||||
Other |
45 |
156 |
201 |
28 |
158 |
186 |
||||||||||||||||||
Total revenues |
$ |
7,995 |
$ |
7,703 |
$ |
15,698 |
$ |
10,204 |
$ |
8,256 |
$ |
18,460 |
||||||||||||
Gross profit: |
||||||||||||||||||||||||
Retail motor fuel |
$ |
— |
$ |
611 |
$ |
611 |
$ |
— |
$ |
635 |
$ |
635 |
||||||||||||
Wholesale motor fuel |
613 |
— |
613 |
407 |
— |
407 |
||||||||||||||||||
Merchandise |
— |
716 |
716 |
— |
680 |
680 |
||||||||||||||||||
Rental and other |
110 |
169 |
279 |
75 |
187 |
262 |
||||||||||||||||||
Total gross profit |
$ |
723 |
$ |
1,496 |
$ |
2,219 |
$ |
482 |
$ |
1,502 |
$ |
1,984 |
||||||||||||
Net income (loss) and comprehensive income (loss) attributable to limited partners |
$ |
269 |
$ |
(675) |
$ |
(406) |
$ |
(5) |
$ |
92 |
$ |
87 |
||||||||||||
Adjusted EBITDA attributable to partners (2) |
$ |
337 |
$ |
328 |
$ |
665 |
$ |
304 |
$ |
411 |
$ |
715 |
||||||||||||
Distributable cash flow attributable to partners, as adjusted (2) |
$ |
390 |
$ |
272 |
||||||||||||||||||||
Operating Data: |
||||||||||||||||||||||||
Total motor fuel gallons sold: |
||||||||||||||||||||||||
Retail |
2,517 |
2,517 |
2,488 |
2,488 |
||||||||||||||||||||
Wholesale |
5,288 |
5,288 |
5,154 |
5,154 |
||||||||||||||||||||
Motor fuel gross profit cents per gallon (1): |
||||||||||||||||||||||||
Retail |
24.0¢ |
24.0¢ |
26.4¢ |
26.4¢ |
||||||||||||||||||||
Wholesale |
9.8¢ |
9.8¢ |
9.4¢ |
9.4¢ |
||||||||||||||||||||
Volume-weighted average for all gallons |
14.4¢ |
14.9¢ |
||||||||||||||||||||||
Retail merchandise margin |
31.5 |
% |
31.2 |
% |
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
Year Ended December 31 | ||||||||||||||||||||||||
2016 |
2015 | |||||||||||||||||||||||
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net income (loss) and comprehensive income (loss) |
$ |
269 |
$ |
(675) |
$ |
(406) |
$ |
92 |
$ |
102 |
$ |
194 |
||||||||||||
Depreciation, amortization and accretion |
94 |
225 |
319 |
68 |
210 |
278 |
||||||||||||||||||
Interest expense, net |
59 |
130 |
189 |
55 |
33 |
88 |
||||||||||||||||||
Income tax expense (benefit) |
5 |
(36) |
(31) |
4 |
48 |
52 |
||||||||||||||||||
EBITDA |
$ |
427 |
$ |
(356) |
$ |
71 |
$ |
219 |
$ |
393 |
$ |
612 |
||||||||||||
Non-cash compensation expense |
6 |
7 |
13 |
4 |
4 |
8 |
||||||||||||||||||
Loss (gain) on disposal of assets & impairment charge |
(3) |
683 |
680 |
1 |
(2) |
(1) |
||||||||||||||||||
Unrealized losses on commodity derivatives |
5 |
— |
5 |
2 |
— |
2 |
||||||||||||||||||
Inventory adjustments (4) |
(98) |
(6) |
(104) |
78 |
20 |
98 |
||||||||||||||||||
Adjusted EBITDA |
$ |
337 |
$ |
328 |
$ |
665 |
$ |
304 |
$ |
415 |
$ |
719 |
||||||||||||
Net income attributable to noncontrolling interest |
— |
— |
— |
— |
4 |
4 |
||||||||||||||||||
Adjusted EBITDA attributable to partners |
$ |
337 |
$ |
328 |
$ |
665 |
$ |
304 |
$ |
411 |
$ |
715 |
||||||||||||
Cash interest expense (3) |
178 |
76 |
||||||||||||||||||||||
Income tax expense (current) |
— |
(18) |
||||||||||||||||||||||
Maintenance capital expenditures |
106 |
35 |
||||||||||||||||||||||
Preacquisition earnings |
— |
356 |
||||||||||||||||||||||
Distributable cash flow attributable to partners |
$ |
381 |
$ |
266 |
||||||||||||||||||||
Transaction-related expenses |
9 |
6 |
||||||||||||||||||||||
Distributable cash flow attributable to partners, as adjusted |
$ |
390 |
$ |
272 |
The following table sets forth, for the periods indicated, information concerning key measures we rely on to gauge our operating performance:
Three Months Ended December 31, | ||||||||||||||||||||||||
2016 |
2015 | |||||||||||||||||||||||
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
(dollars and gallons in millions, except motor fuel pricing and gross profit per gallon) | ||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Retail motor fuel |
$ |
— |
$ |
1,384 |
$ |
1,384 |
$ |
— |
$ |
1,294 |
$ |
1,294 |
||||||||||||
Wholesale motor fuel sales to third parties |
2,267 |
— |
2,267 |
2,158 |
— |
2,158 |
||||||||||||||||||
Wholesale motor fuel sale to affiliates |
17 |
— |
17 |
11 |
— |
11 |
||||||||||||||||||
Merchandise |
— |
566 |
566 |
— |
545 |
545 |
||||||||||||||||||
Rental income |
19 |
4 |
23 |
17 |
3 |
20 |
||||||||||||||||||
Other |
15 |
34 |
49 |
10 |
39 |
49 |
||||||||||||||||||
Total revenues |
$ |
2,318 |
$ |
1,988 |
$ |
4,306 |
$ |
2,196 |
$ |
1,881 |
$ |
4,077 |
||||||||||||
Gross profit: |
||||||||||||||||||||||||
Retail motor fuel |
$ |
— |
$ |
164 |
$ |
164 |
$ |
— |
$ |
152 |
$ |
152 |
||||||||||||
Wholesale motor fuel |
159 |
— |
159 |
76 |
— |
76 |
||||||||||||||||||
Merchandise |
— |
169 |
169 |
— |
170 |
170 |
||||||||||||||||||
Rental and other |
30 |
40 |
70 |
26 |
41 |
67 |
||||||||||||||||||
Total gross profit |
$ |
189 |
$ |
373 |
$ |
562 |
$ |
102 |
$ |
363 |
$ |
465 |
||||||||||||
Net income (loss) and comprehensive income (loss) attributable to limited partners |
$ |
61 |
$ |
(646) |
$ |
(585) |
$ |
(10) |
$ |
18 |
$ |
8 |
||||||||||||
Adjusted EBITDA attributable to partners (2) |
$ |
77 |
$ |
77 |
$ |
154 |
$ |
83 |
$ |
106 |
$ |
189 |
||||||||||||
Distributable cash flow attributable to partners, as adjusted (2) |
$ |
63 |
$ |
90 |
||||||||||||||||||||
Operating Data: |
||||||||||||||||||||||||
Total motor fuel gallons sold: |
||||||||||||||||||||||||
Retail |
626 |
626 |
620 |
620 |
||||||||||||||||||||
Wholesale |
1,359 |
1,359 |
1,241 |
1,241 |
||||||||||||||||||||
Motor fuel gross profit cents per gallon (1): |
||||||||||||||||||||||||
Retail |
25.7¢ |
25.7¢ |
27.8¢ |
27.8¢ |
||||||||||||||||||||
Wholesale |
9.0¢ |
9.0¢ |
9.6¢ |
9.6¢ |
||||||||||||||||||||
Volume-weighted average for all gallons |
14.3¢ |
15.7¢ |
||||||||||||||||||||||
Retail merchandise margin |
29.9 |
% |
31.1 |
% |
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
Three Months Ended December 31 | ||||||||||||||||||||||||
2016 |
2015 | |||||||||||||||||||||||
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net income (loss) and comprehensive income (loss) |
$ |
61 |
$ |
(646) |
$ |
(585) |
$ |
(7) |
$ |
24 |
$ |
17 |
||||||||||||
Depreciation, amortization and accretion |
34 |
51 |
85 |
20 |
55 |
75 |
||||||||||||||||||
Interest expense, net |
18 |
38 |
56 |
23 |
7 |
30 |
||||||||||||||||||
Income tax expense (benefit) |
3 |
(43) |
(40) |
3 |
1 |
4 |
||||||||||||||||||
EBITDA |
$ |
116 |
$ |
(600) |
$ |
(484) |
$ |
39 |
$ |
87 |
$ |
126 |
||||||||||||
Non-cash compensation expense |
2 |
2 |
4 |
1 |
1 |
2 |
||||||||||||||||||
Loss (gain) on disposal of assets & impairment charge |
(1) |
678 |
677 |
— |
(1) |
(1) |
||||||||||||||||||
Unrealized losses on commodity derivatives |
(4) |
— |
(4) |
(1) |
— |
(1) |
||||||||||||||||||
Inventory adjustments (4) |
(36) |
(3) |
(39) |
44 |
20 |
64 |
||||||||||||||||||
Adjusted EBITDA |
$ |
77 |
$ |
77 |
$ |
154 |
$ |
83 |
$ |
107 |
$ |
190 |
||||||||||||
Net income attributable to noncontrolling interest |
— |
— |
— |
— |
1 |
1 |
||||||||||||||||||
Adjusted EBITDA attributable to partners |
$ |
77 |
$ |
77 |
$ |
154 |
$ |
83 |
$ |
106 |
$ |
189 |
||||||||||||
Cash interest expense (3) |
53 |
27 |
||||||||||||||||||||||
Income tax expense (current) |
12 |
(19) |
||||||||||||||||||||||
Maintenance capital expenditures |
33 |
16 |
||||||||||||||||||||||
Preacquisition earnings |
— |
77 |
||||||||||||||||||||||
Distributable cash flow attributable to partners |
$ |
56 |
$ |
88 |
||||||||||||||||||||
Transaction-related expenses |
7 |
2 |
||||||||||||||||||||||
Distributable cash flow attributable to partners, as adjusted |
$ |
63 |
$ |
90 |
_______________________________
(1) |
Excludes the impact of inventory fair value adjustments consistent with the definition of Adjusted EBITDA. | |
(2) |
EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense. Adjusted EBITDA further adjusts EBITDA to reflect certain other non-recurring and non-cash items. We 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 long-term debt that 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. | |
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; | |
• |
our management uses them 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, and 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 | |
• |
as 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. | |
(3) |
Reflects the partnership's cash interest less the cash interest paid on our VIE debt of $9 million and $2 million during the year ended December 31, 2015 and the three months ended December 31, 2015, respectively. | |
(4) |
Due to the change in fuel prices, we recorded a write-down on the value of fuel inventory of $98 million and $64 million during the year ended December 31, 2015 and the three months ended December 31, 2015, respectively. |
Capital Spending
SUN's gross capital expenditures for the fourth quarter were $148.1 million, which included $115.1 million for growth capital and $33.0 million for maintenance capital. Approximately $53.6 million of the growth capital spent was for the construction of new-to-industry sites, of which 14 were opened in the fourth quarter.
For the full year, SUN invested $332.4 million in growth capital and $106.2 million in maintenance capital. $126.8 million of growth capital was invested in 28 new-to-industry sites opened in 2016, with an additional 10 that opened during the first quarter 2017.
Excluding acquisitions, SUN expects approximately $200 million to be spent on growth capital and approximately $90 million to be spent on maintenance capital for the full year 2017.
Growth capital spending includes the rebuilding of locations SUN is operating on the Indiana Toll Road.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/headline-300412120.html
SOURCE Sunoco LP
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