Feb 28, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Global Partners LP
(NYSE: GLP), one of New England's largest wholesale distributors of
distillates, gasoline, and residual oil and bunker fuel to wholesalers,
retailers and commercial customers, today announced financial results for the
three and twelve months ended December 31, 2005.
Financial Results for the Three Months Ended December 31, 2005 and 2004
Net income for the three months ended December 31, 2005 was $9.8 million,
or $0.85 per limited partner unit. Net income for the same period in 2004 was
$6.8 million.
Earnings before interest, taxes, depreciation and amortization ("EBITDA")
for the three months ended December 31, 2005 were $14.5 million, compared with
$9.7 million for the same period in 2004. The financial tables following this
release include a reconciliation of net income to EBITDA and cash flows for
operating activities to EBITDA for the three and twelve months ended December
31, 2005 and 2004. EBITDA is a non-Generally Accepted Accounting Principles
("non-GAAP") measure explained in greater detail below under "Use of Non-GAAP
Financial Measures."
The Partnership's distributable cash flow for the fourth quarter of 2005
was $9.6 million. The financial tables following this release include a
reconciliation of net income to distributable cash flow from October 4, 2005
through December 31, 2005. Distributable cash flow is a non-GAAP financial
measure that is explained in greater detail below under "Use of Non-GAAP
Financial Measures."
As a result of an increase in commodity prices, sales for the three months
ended December 31, 2005 increased approximately 27% to $1.3 billion from $1.0
billion in the same period of 2004. Sales in the Wholesale segment increased
24% to $1.1 billion from $914 million in the fourth quarter of 2004. Sales in
the Commercial segment increased 51% to $139.3 million from $92.0 million in
the fourth quarter of 2004.
For the three months ended December 31, 2005, Global Partners reported
combined gross profit of $29.9 million, a 22% increase from $24.6 million in
the comparable period of 2004.
"Higher commodity prices drove year-over-year sales increases in both
segments of our business," said Eric Slifka, president and chief executive
officer, "while our continued focus on higher margin products resulted in
robust gains in gross profit."
In January 2006, the Board of Directors of the general partner of Global
Partners increased the Partnership's cash distribution for the quarter ended
December 31, 2005 by 3% to $0.425 per unit. The distribution, which was paid
on February 14, 2006, was prorated from the closing of Global Partners'
initial public offering on October 4, 2005.
"During the fourth quarter, we strengthened our financial position by
signing an agreement with a nine-bank syndicate, led by Bank of America, to
expand our revolving credit facility to $500 million," said Slifka. "In
addition, we signed an agreement to acquire a 109,000-barrel refined petroleum
products terminal in Bridgeport, Connecticut that will enhance our market
share in southern New England. We expect this transaction to close in the
second quarter of 2006. Looking ahead, we will continue to pursue strategic
and accretive acquisitions, both within and outside of our core geographic
markets."
Financial Results for the Twelve Months Ended December 31, 2005 and 2004
Net income for the twelve months ended December 31, 2005 was $18.1
million, or $1.57 per limited partner unit. Net income for the same period in
2004 was $17.3 million.
EBITDA for the twelve months ended December 31, 2005 was $32.9 million,
compared with $25.2 million for the same period in 2004. The financial tables
following this release include a reconciliation of net income to EBITDA and
cash flows for operating activities to EBITDA for the three and twelve months
ended December 31, 2005 and 2004.
Due to increased commodity prices, sales for the twelve months ended
December 31, 2005 increased 27% to $4.0 billion from $3.2 billion for the
comparable period in 2004. In the Wholesale segment, sales totaled $3.6
billion in 2005, up 26% from $2.9 billion recorded in 2004. Sales in the
Commercial segment grew 30% to $423.0 million in 2005 from $324.4 million in
2004.
For the twelve months ended December 31, 2005, the Partnership's combined
gross profit increased 21% to $91.7 million from $75.9 million for the twelve
months ended December 31, 2004.
Financial Results Conference Call
Management will review Global Partners' fourth-quarter and full-year 2005
financial results in a teleconference call for analysts and investors at 10:00
a.m. ET today.
Dial-in numbers: (888) 349-5690 (U.S. and Canada)
(706) 643-3945 (International)
One-week Replay: (800) 642-1687 (U.S. and Canada)
(706) 645-9291 (International)
Conference ID: 4378895 (Required for live call and replay)
The call also will be audio webcast live and archived on the Global
Partners' website, http://www.globalp.com.
Use of Non-GAAP Financial Measures
Global Partners uses EBITDA as a supplemental financial measure to assess:
its compliance with certain financial covenants included in its debt
agreements; financial performance without regard to financing methods, capital
structure, income taxes or historical cost basis; ability to generate cash
sufficient to pay interest on its indebtedness and to make distributions to
its partners; its operating performance and return on invested capital as
compared to those of other companies in the wholesale marketing and
distribution of refined petroleum products business, without regard to
financing methods and capital structure; and the viability of acquisitions and
capital expenditure projects and the overall rates of return of alternative
investment opportunities. EBITDA is not calculated or presented in accordance
with generally accepted accounting principles, or GAAP. EBITDA should not be
considered an alternative to net income, operating income, cash flows for
operating activities or any other measure of financial performance or
liquidity presented in accordance with GAAP. EBITDA excludes some, but not
all, items that affect net income and operating income, and these measures may
vary among other companies. Therefore, EBITDA as presented below may not be
comparable to similarly titled measures of other companies.
Distributable cash flow also is an important non-GAAP financial measure
for limited partners of Global Partners since it serves as an indicator of the
Partnership's success in providing a cash return on their investment.
Specifically, this financial measure indicates to investors whether or not
Global Partners is generating cash flows at a level that can sustain or
support an increase in its quarterly cash distribution. Distributable cash
flow is also a quantitative standard used by the investment community with
respect to publicly traded partnerships. Distributable cash flow should not be
considered as an alternative to net income or any other indicator of the
Partnership's performance required by accounting principles generally accepted
in the United States. In addition, the distributable cash flow of Global
Partners may not be comparable to similarly titled measures of other
companies.
GLOBAL PARTNERS LP
TABLE 1: RECONCILIATION OF NET INCOME TO EBITDA
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
Net income $9,752,061 $6,758,003 $18,101,278 $17,309,259
Add:
Depreciation and
amortization 978,878 1,029,927 3,874,827 3,232,284
Interest expense 2,791,597 1,891,606 9,960,239 4,700,240
Income tax expense 986,287 - 986,287 -
EBITDA $14,508,823 $9,679,536 $32,922,631 $25,241,783
GLOBAL PARTNERS LP
TABLE 2: RECONCILIATION OF CASH FLOWS FOR OPERATING ACTIVITIES TO
EBITDA
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
Cash flows for
operating
activities ($27,000,162) ($20,387,976) ($29,376,319) ($81,952,544)
Add:
Increase
in operating
assets and
liabilities 38,717,388 28,175,906 52,338,711 102,494,087
Interest
expense 2,791,597 1,891,606 9,960,239 4,700,240
EBITDA $14,508,823 $9,679,536 $32,922,631 $25,241,783
GLOBAL PARTNERS LP
TABLE 3: RECONCILIATION OF NET INCOME TO DISTRIBUTABLE CASH FLOW
Predecessor
activity
included in
Three Adjusted
Three Months Months Three Months
Ended Ended Ended
December 31, December 31, December 31,
2005 2005 (1) 2005
Net income $9,752,061 $344,253 $9,407,808
Add:
Depreciation and amortization 978,878 38,677 940,201
Less:
Maintenance capital expenditures 747,430 - 747,430
Distributable Cash Flow $9,983,509 $382,930 $9,600,579
(1) Represents the activity of Global Partners LP's predecessor companies
from October 1st through October 3rd, 2005. Global Partners LP
completed its initial public offering on October 4, 2005.
About Global Partners LP
Global Partners, a master limited partnership based in Waltham,
Massachusetts, is one of the largest wholesale distributors of distillates
(such as home heating oil, diesel and kerosene), gasoline, and residual oil
and bunker fuel to wholesalers, retailers and commercial customers in New
England. Global Partners, which completed its initial public offering in
October 2005, was formed by affiliates of the Slifka family. Global Partners
trades on the New York Stock Exchange under the ticker symbol "GLP." For
additional information, please visit http://www.globalp.com.
Safe Harbor Statement
This news release may contain certain "forward-looking statements" within
the meaning of the federal securities laws. These forward-looking statements
are identified as any statements that do not relate strictly to historical or
current facts and can generally be identified by the use of forward-looking
terminology including "may," "believe," "expect," "anticipate," "estimate,"
"continue" or other similar words. Such statements may discuss future
expectations for or contain projections of results of operations, financial
condition or our ability to make distributions to unit holders or state other
"forward-looking" information. Forward-looking statements are not guarantees
of performance. Although the Partnership believes these forward-looking
statements are based on reasonable assumptions, statements made regarding
future results are subject to a number of assumptions, uncertainties and
risks, many of which are beyond our control, which may cause future results to
be materially different from the results stated or implied in this document.
Additional information about risks and uncertainties that could cause actual
results to differ materially from forward-looking statements is contained in
Global Partners' filings with the Securities and Exchange Commission,
including its prospectus as filed on September 29, 2005 pursuant to Rule
424(b) of the Securities Act of 1933. All forward-looking statements included
in this news release and all subsequent written or oral forward-looking
statements attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. The
forward-looking statements speak only as of the date made, other than as
required by law, and Global Partners undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contacts:
Thomas A. McManmon Jr. Edward J. Faneuil
Executive Vice President and Executive Vice President,
Chief Financial Officer General Counsel and Secretary
Global Partners LP Global Partners LP
(781) 894-8800 (781) 894-8800
The financial statements and financial information presented below
reflect the operations of Global Partners LP
GLOBAL PARTNERS LP
COMBINED BALANCE SHEETS
December 31, December 31,
2005 2004
(Unaudited)
Assets
Total current assets $519,339,771 $345,525,073
Property and equipment, net 21,975,029 22,630,437
Intangible assets, net 10,602,603 12,225,407
Other assets 2,838,385 12,580,601
Total assets $554,755,788 $392,961,518
Liabilities and partners' equity
Total current liabilities (excluding
revolving line of credit) $290,612,995 $177,405,166
Revolving line of credit (current) - 139,900,000
Revolving line of credit (long term) 181,600,000 -
Other long-term liabilities 6,234,294 52,493,943
Partners' Equity
Predecessor Partners' equity 23,162,409
Held by public
Common unitholders (5,635,000 units
issued and outstanding at December
31, 2005) 115,891,523
Held by general partner & affiliates
Common units (7,424 units issued and
outstanding at December 31, 2005) (49,975)
Subordinated unitholders (5,642,424
units issued and outstanding at
December 31, 2005) (37,982,734)
General partner interest (2% interest
with 230,303 equivalent units
outstanding at December 31, 2005) (1,550,315)
Total Partners' Equity 76,308,499 23,162,409
Total liabilities and partners' equity $554,755,788 $392,961,518
GLOBAL PARTNERS LP
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Three Months Ended
December 31, December 31,
2005 2004
Sales $1,275,728,471 $1,006,064,274
Cost of sales 1,245,840,984 981,502,421
Gross profit 29,887,487 24,561,853
Selling, general and
administrative expenses 10,870,931 10,169,256
Operating expenses 5,080,910 5,337,287
Amortization expenses 405,701 405,701
Operating income 13,529,945 8,649,609
Interest expense 2,791,597 1,891,606
Other expense - -
Income before income tax expense $10,738,348 $6,758,003
Income tax expense 986,287 0
Net income $9,752,061 $6,758,003
GLOBAL PARTNERS LP
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
Twelve Months Ended Twelve Months Ended
December 31, December 31,
2005 2004
Sales $4,045,857,606 $3,187,568,928
Cost of sales 3,954,140,647 3,111,696,974
Gross profit 91,716,959 75,871,954
Selling, general and
administrative expenses 40,297,704 33,429,589
Operating expenses 19,698,678 19,608,132
Amortization expenses 1,622,804 824,734
Operating income 30,097,773 22,009,499
Interest expense 9,960,239 4,700,240
Other expense 1,049,969 -
Income before income tax expense $19,087,565 $17,309,259
Income tax expense 986,287 -
Net income $18,101,278 $17,309,259
SOURCE Global Partners LP
Thomas A. McManmon Jr., Executive Vice President and Chief Financial Officer,
+1-781-894-8800, or Edward J. Faneuil, Executive Vice President, General Counsel and
Secretary, +1-781-894-8800, both of Global Partners LP