Global Partners LP Reports Financial Results for Fourth Quarter and Full Year 2005

February 28, 2006

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