HEADLINE

HEADLINE

PR Newswire

 

 


DLC, Feb. 22, 2017

SUNOCO LP

CONSOLIDATED BALANCE SHEETS



December 31,
 2016


December 31,
 2015


(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
December 31,
 2016


Year Ended
December 31,
 2015


September 1, 2014
through

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

Copyright CNW Group 2017