-
Net income of $14.9 million
-
EBITDA of $60.8 million
-
Distributable cash flow of $32.3 million
WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 8, 2017--
Global Partners LP (NYSE: GLP) today reported financial results for the
third quarter ended September 30, 2017.
“Our third-quarter results reflect solid performance,” said Eric Slifka,
President and Chief Executive Officer of Global Partners. “We continue
to pursue strategic acquisitions that drive volume and margin. In
October, we acquired the retail gas stations and convenience store
assets of Honey Farms, expanding our footprint in the Worcester, Mass.
region and achieving larger economies of scale. We expect this
transaction to be accretive within the first full year of operations.”
Net income attributable to the Partnership in the third quarter of 2017
was $14.9 million, or $0.44 per diluted limited partner unit, compared
with a net loss attributable to the Partnership of $119.6 million, or
$3.54 per limited partner unit, in the third quarter of 2016. Results
for the 2016 third quarter included a $147.8 million non-cash goodwill
and long-lived asset impairment related to the Partnership’s Wholesale
reporting unit.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
in the third quarter of 2017 was $60.8 million compared with negative
EBITDA of $67.8 million in the comparable period of 2016. Adjusted
EBITDA was $63.8 million in the third quarter of 2017 compared with
Adjusted EBITDA of $51.6 million in the same period of 2016.
Distributable cash flow (DCF) in the third quarter of 2017 was $32.3
million compared with negative DCF of $100.2 million in the same period
of 2016. Excluding the net loss on sale and disposition of assets and
net goodwill and long-lived asset impairment, DCF would have been $35.3
million and $19.3 million for the three months ended September 30, 2017
and 2016, respectively.
Gross profit in the third quarter of 2017 was $150.1 million compared
with $132.6 million for the comparable period of 2016. Combined product
margin, which is gross profit minus depreciation allocated to cost of
sales, was $172.3 million and $157.2 million for the third quarters of
2017 and 2016, respectively.
Gasoline Distribution and Station Operations (GDSO) segment product
margin was $130.7 million in the third quarter of 2017 versus $136.8
million in the comparable period of 2016, reflecting in part the sale of
certain retail sites in the third quarter of 2016.
Wholesale segment product margin was $36.6 million in the third quarter
of 2017 compared with $16.1 million in the third quarter of 2016. The
increase was due, in part, to weather-related supply disruptions that
benefited wholesale gasoline, revenue related to a crude oil take-or-pay
contract with one particular customer and a decrease in railcar lease
expense as the result of the Partnership’s early termination of a
sublease in December 2016. Crude oil product margin was negatively
impacted by an expense associated with the acceleration and
corresponding termination of a contractual obligation under a pipeline
connection agreement with Tesoro related to the Beulah, North Dakota
facility.
Commercial segment product margin was $5.0 million in the third quarter
of 2017 compared with $4.2 million for the same period in 2016.
Sales were $2.2 billion in the third quarter of 2017 compared with $2.0
billion in the same period of 2016 due to an increase in prices.
Wholesale segment sales were $962.0 million compared with $947.7 million
in the third quarter of 2016. Sales in the GDSO segment were $992.3
million in the third quarter of 2017 versus $920.3 million for the same
period in 2016. Commercial segment sales were $205.4 million compared
with $162.1 million in the third quarter of 2016.
Wholesale segment volume was 580.8 million gallons in the third quarter
of 2017 compared with 687.5 million gallons for the same period of 2016.
The year-over-year decrease was primarily due to lower volumes of
gasoline, gasoline blendstocks and crude oil.
Volume in the GDSO segment was 410.1 million gallons in the third
quarter of 2017 compared with 415.2 million gallons in the third quarter
of 2016 reflecting, in part, the sale of certain retail sites in the
third quarter of 2016.
Commercial segment volume was 128.5 million gallons compared with 121.9
million gallons in the third quarter of 2016.
Combined product margin, EBITDA, Adjusted EBITDA, and DCF are non-GAAP
(Generally Accepted Accounting Principles) financial measures, which are
explained in greater detail below under “Use of Non-GAAP Financial
Measures.” Please refer to Financial Reconciliations included in this
news release for reconciliations of these non-GAAP financial measures to
their most directly comparable GAAP financial measures for the three
months ended September 30, 2017 and 2016.
Recent Developments
-
The Partnership acquired the retail fuel and convenience store assets
of Honey Farms, Inc. in a cash transaction for approximately $36.0
million. The acquisition includes 11 company-operated sites with fuel
and convenience stores and 22 company-operated stand-alone convenience
stores.
-
Global’s Board of Directors announced a quarterly cash distribution of
$0.4625 per unit, or $1.85 per unit on an annualized basis, on all of
its outstanding common units for the period from July 1 to September
30, 2017. The distribution will be paid November 14, 2017 to
unitholders of record as of the close of business on November 9, 2017.
Business Outlook
“We are pleased with our financial and operating performance through the
first nine months of 2017,” Slifka said. “We look forward to continuing
to invest in our business and optimizing our retail and terminal assets.”
With respect to forecasting 2017 net income and net cash from operating
activities, the most comparable financial measures to EBITDA calculated
in accordance with GAAP, the Partnership is unable to project either
metric without unreasonable effort and for the following reasons: 1) The
Partnership is unable to project net income because this metric includes
the impact of certain non-cash items, most notably those resulting from
the divestiture program of non-strategic sites, which the Partnership is
unable to project with any reasonable degree of accuracy; and 2) The
Partnership is unable to project net cash from operating activities
because this metric includes the impact of changes in commodity prices,
including their impact on inventory volume and value, receivables,
payables and derivatives, which the Partnership is unable to project
with any reasonable degree of accuracy. Please see the "Use of Non-GAAP
Financial Measures" section of this news release.
For full-year 2017, Global expects to achieve EBITDA above the midpoint
of its guidance of $190.0 million to $220.0 million, which guidance
excludes the gain or loss on the sale and disposition of assets and any
impairment charges. The Partnership’s guidance and future performance
are based on assumptions regarding market conditions such as the crude
oil market, business cycles, demand for petroleum products and renewable
fuels, utilization of assets and facilities, weather, credit markets,
the regulatory and permitting environment and the forward product
pricing curve, which could influence quarterly financial results. The
Partnership believes these assumptions are reasonable given currently
available information and its assessment of historical trends. Because
Global’s assumptions and future performance are subject to a wide range
of business risks and uncertainties, the Partnership can provide no
assurance that actual performance will fall within guidance ranges.
Financial Results Conference Call
Management will review the Partnership’s third-quarter 2017 financial
results in a teleconference call for analysts and investors today.
|
Time:
|
|
|
|
10:00 a.m. ET
|
|
|
|
|
|
|
|
Dial-in numbers:
|
|
|
|
(877) 709-8155 (U.S. and Canada)
|
|
|
|
|
|
(201) 689-8881 (International)
|
The call also will be webcast live and archived on Global’s website.
Use of Non-GAAP Financial Measures
Product Margin
Global Partners views product margin as an important performance measure
of the core profitability of its operations. The Partnership reviews
product margin monthly for consistency and trend analysis. Global
Partners defines product margin as product sales minus product costs.
Product sales primarily include sales of unbranded and branded gasoline,
distillates, residual oil, renewable fuels, crude oil, natural gas and
propane, as well as convenience store sales, gasoline station rental
income and revenue generated from logistics activities when the
Partnership engages in the storage, transloading and shipment of
products owned by others. Product costs include the cost of acquiring
the refined petroleum products, renewable fuels, crude oil, natural gas
and propane and all associated costs including shipping and handling
costs to bring such products to the point of sale as well as product
costs related to convenience store items and costs associated with
logistics activities. The Partnership also looks at product margin on a
per unit basis (product margin divided by volume). Product margin is a
non-GAAP financial measure used by management and external users of the
Partnership’s consolidated financial statements to assess its business.
Product margin should not be considered an alternative to net income,
operating income, cash flow from operations, or any other measure of
financial performance presented in accordance with GAAP. In addition,
product margin may not be comparable to product margin or a similarly
titled measure of other companies.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP financial measures used as
supplemental financial measures by management and may be used by
external users of Global Partners’ consolidated financial statements,
such as investors, commercial banks and research analysts, to assess the
Partnership’s:
-
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;
-
operating performance and return on invested capital as compared to
those of other companies in the wholesale, marketing, storing and
distribution of refined petroleum products, renewable fuels, crude
oil, natural gas and propane, and in the gasoline stations and
convenience stores business, without regard to financing methods and
capital structure; and
-
viability of acquisitions and capital expenditure projects and the
overall rates of return of alternative investment opportunities.
Adjusted EBITDA is EBITDA further adjusted for gains or losses on the
sale and disposition of assets and goodwill and long-lived asset
impairment. EBITDA and Adjusted EBITDA should not be considered as
alternatives to net income, operating income, cash flow from operating
activities or any other measure of financial performance or liquidity
presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude
some, but not all, items that affect net income, and these measures may
vary among other companies. Therefore, EBITDA and Adjusted EBITDA may
not be comparable to similarly titled measures of other companies.
Distributable Cash Flow
Distributable cash flow is an important non-GAAP financial measure for
the Partnership’s limited partners since it serves as an indicator of
success in providing a cash return on their investment. Distributable
cash flow as defined by the Partnership’s partnership agreement is net
income plus depreciation and amortization minus maintenance capital
expenditures, as well as adjustments to eliminate items approved by the
audit committee of the board of directors of the Partnership’s general
partner that are extraordinary or non-recurring in nature and that would
otherwise increase distributable cash flow.
Distributable cash flow as used in the Partnership’s partnership
agreement determines its ability to make cash distributions on incentive
distribution rights. The investment community also uses a distributable
cash flow metric similar to the metric used in the partnership agreement
with respect to publicly traded partnerships to indicate whether or not
such partnerships have generated sufficient earnings on a current or
historic level that can sustain or support an increase in quarterly cash
distribution. The partnership agreement does not permit adjustments for
certain non-cash items, such as net losses on the sale and disposition
of assets and goodwill and long-lived asset impairment charges.
Distributable cash flow should not be considered as an alternative to
net income, operating income, cash flow from operations, or any other
measure of financial performance presented in accordance with GAAP. In
addition, distributable cash flow may not be comparable to distributable
cash flow or similarly titled measures of other companies.
About Global Partners LP
Global Partners is a midstream logistics and marketing master limited
partnership that owns, controls or has access to one of the largest
terminal networks of petroleum products and renewable fuels in the
Northeast. With approximately 1,500 locations, primarily in the
Northeast, Global is one of the largest regional independent owners,
suppliers and operators of gasoline stations and convenience stores.
Global is also one of the largest distributors of gasoline, distillates,
residual oil and renewable fuels to wholesalers, retailers and
commercial customers in New England and New York. The Partnership is
also engaged in the transportation of petroleum products and renewable
fuels by rail from the mid-continental U.S. and Canada. For additional
information, visit www.globalp.com.
Forward-looking Statements
Certain statements and information in this press release may constitute
“forward-looking statements.” The words “believe,” “expect,”
“anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could” or
other similar expressions are intended to identify forward-looking
statements, which are generally not historical in nature. These
forward-looking statements are based on Global Partners’ current
expectations and beliefs concerning future developments and their
potential effect on the Partnership. While management believes that
these forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting the Partnership
will be those that it anticipates. All comments concerning the
Partnership’s expectations for future revenues and operating results are
based on forecasts for its existing operations and do not include the
potential impact of any future acquisitions. Forward-looking statements
involve significant risks and uncertainties (some of which are beyond
the Partnership’s control) and assumptions that could cause actual
results to differ materially from the Partnership’s historical
experience and present expectations or projections.
For additional information regarding known material factors that could
cause actual results to differ from the Partnership’s projected results,
please see Global Partners’ filings with the SEC, including its Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. The Partnership
undertakes no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as a
result of new information, future events or otherwise.
|
|
|
GLOBAL PARTNERS LP
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except per unit data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
Sales
|
|
|
|
$
|
2,159,746
|
|
|
|
|
$
|
2,030,198
|
|
|
|
|
$
|
6,520,060
|
|
|
|
|
$
|
5,927,209
|
|
|
Cost of sales
|
|
|
|
|
2,009,652
|
|
|
|
|
|
1,897,587
|
|
|
|
|
|
6,094,577
|
|
|
|
|
|
5,535,197
|
|
|
Gross profit
|
|
|
|
|
150,094
|
|
|
|
|
|
132,611
|
|
|
|
|
|
425,483
|
|
|
|
|
|
392,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
40,134
|
|
|
|
|
|
36,705
|
|
|
|
|
|
111,600
|
|
|
|
|
|
108,329
|
|
|
Operating expenses
|
|
|
|
|
70,338
|
|
|
|
|
|
70,591
|
|
|
|
|
|
208,720
|
|
|
|
|
|
218,718
|
|
|
Amortization expense
|
|
|
|
|
2,260
|
|
|
|
|
|
2,260
|
|
|
|
|
|
6,781
|
|
|
|
|
|
7,128
|
|
|
Net loss (gain) on sale and disposition of assets
|
|
|
|
|
2,190
|
|
|
|
|
|
7,486
|
|
|
|
|
|
(7,291
|
)
|
|
|
|
|
13,966
|
|
|
Goodwill and long-lived asset impairment
|
|
|
|
|
809
|
|
|
|
|
|
147,817
|
|
|
|
|
|
809
|
|
|
|
|
|
149,972
|
|
|
Total costs and operating expenses
|
|
|
|
|
115,731
|
|
|
|
|
|
264,859
|
|
|
|
|
|
320,619
|
|
|
|
|
|
498,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
34,363
|
|
|
|
|
|
(132,248
|
)
|
|
|
|
|
104,864
|
|
|
|
|
|
(106,101
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
(20,626
|
)
|
|
|
|
|
(21,197
|
)
|
|
|
|
|
(65,836
|
)
|
|
|
|
|
(65,192
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax benefit (expense)
|
|
|
|
|
13,737
|
|
|
|
|
|
(153,445
|
)
|
|
|
|
|
39,028
|
|
|
|
|
|
(171,293
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense)
|
|
|
|
|
723
|
|
|
|
|
|
(3,138
|
)
|
|
|
|
|
(72
|
)
|
|
|
|
|
(1,668
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
14,460
|
|
|
|
|
|
(156,583
|
)
|
|
|
|
|
38,956
|
|
|
|
|
|
(172,961
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to noncontrolling interest
|
|
|
|
|
418
|
|
|
|
|
|
37,032
|
|
|
|
|
|
1,242
|
|
|
|
|
|
39,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Global Partners LP
|
|
|
|
|
14,878
|
|
|
|
|
|
(119,551
|
)
|
|
|
|
|
40,198
|
|
|
|
|
|
(133,885
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: General partner's interest in net income (loss), including
incentive distribution rights
|
|
|
|
|
100
|
|
|
|
|
|
(801
|
)
|
|
|
|
|
270
|
|
|
|
|
|
(897
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partners' interest in net income (loss)
|
|
|
|
$
|
14,778
|
|
|
|
|
$
|
(118,750
|
)
|
|
|
|
$
|
39,928
|
|
|
|
|
$
|
(132,988
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per limited partner unit (1)
|
|
|
|
$
|
0.44
|
|
|
|
|
$
|
(3.54
|
)
|
|
|
|
$
|
1.19
|
|
|
|
|
$
|
(3.97
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per limited partner unit (1)
|
|
|
|
$
|
0.44
|
|
|
|
|
$
|
(3.54
|
)
|
|
|
|
$
|
1.18
|
|
|
|
|
$
|
(3.97
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average limited partner units outstanding
|
|
|
|
|
33,644
|
|
|
|
|
|
33,531
|
|
|
|
|
|
33,570
|
|
|
|
|
|
33,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average limited partner units outstanding (2)
|
|
|
|
|
33,945
|
|
|
|
|
|
33,531
|
|
|
|
|
|
33,839
|
|
|
|
|
|
33,522
|
|
(1) Under the Partnership's partnership agreement, for any quarterly
period, the incentive distribution rights ("IDRs") participate in net
income only to the extent of the amount of cash distributions actually
declared, thereby excluding the IDRs from participating in the
Partnership's undistributed net income or losses. Accordingly, the
Partnership's undistributed net income is assumed to be allocated to the
limited partners' interest and to the General Partner's general partner
interest. Limited partners' interest in net income is divided by the
weighted average limited partner units outstanding in computing the net
income per limited partner unit.
(2) Basic units were used to calculate diluted net loss per limited
partner unit for the three and nine months ended September 30, 2016, as
using the effects of phantom units would have an anti-dilutive effect on
net loss per limited partner unit.
|
|
|
GLOBAL PARTNERS LP
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
10,855
|
|
|
|
$
|
10,028
|
|
Accounts receivable, net
|
|
|
|
|
330,939
|
|
|
|
|
421,360
|
|
Accounts receivable - affiliates
|
|
|
|
|
5,647
|
|
|
|
|
3,143
|
|
Inventories
|
|
|
|
|
280,510
|
|
|
|
|
521,878
|
|
Brokerage margin deposits
|
|
|
|
|
12,454
|
|
|
|
|
27,653
|
|
Derivative assets
|
|
|
|
|
5,350
|
|
|
|
|
21,382
|
|
Prepaid expenses and other current assets
|
|
|
|
|
77,175
|
|
|
|
|
70,022
|
|
Total current assets
|
|
|
|
|
722,930
|
|
|
|
|
1,075,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
1,038,231
|
|
|
|
|
1,099,899
|
|
Intangible assets, net
|
|
|
|
|
57,670
|
|
|
|
|
65,013
|
|
Goodwill
|
|
|
|
|
291,455
|
|
|
|
|
294,768
|
|
Other assets
|
|
|
|
|
37,892
|
|
|
|
|
28,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
2,148,178
|
|
|
|
$
|
2,564,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and partners' equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
241,724
|
|
|
|
$
|
320,262
|
|
Working capital revolving credit facility - current portion
|
|
|
|
|
39,200
|
|
|
|
|
274,600
|
|
Environmental liabilities - current portion
|
|
|
|
|
5,329
|
|
|
|
|
5,341
|
|
Trustee taxes payable
|
|
|
|
|
97,857
|
|
|
|
|
101,166
|
|
Accrued expenses and other current liabilities
|
|
|
|
|
81,383
|
|
|
|
|
70,443
|
|
Derivative liabilities
|
|
|
|
|
11,109
|
|
|
|
|
27,413
|
|
Total current liabilities
|
|
|
|
|
476,602
|
|
|
|
|
799,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working capital revolving credit facility - less current portion
|
|
|
|
|
100,000
|
|
|
|
|
150,000
|
|
Revolving credit facility
|
|
|
|
|
190,000
|
|
|
|
|
216,700
|
|
Senior notes
|
|
|
|
|
661,109
|
|
|
|
|
659,150
|
|
Environmental liabilities - less current portion
|
|
|
|
|
52,712
|
|
|
|
|
57,724
|
|
Financing obligations
|
|
|
|
|
152,463
|
|
|
|
|
152,444
|
|
Deferred tax liabilities
|
|
|
|
|
64,181
|
|
|
|
|
66,054
|
|
Other long-term liabilities
|
|
|
|
|
59,343
|
|
|
|
|
64,882
|
|
Total liabilities
|
|
|
|
|
1,756,410
|
|
|
|
|
2,166,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partners' equity
|
|
|
|
|
|
|
|
|
|
|
|
Global Partners LP equity
|
|
|
|
|
388,010
|
|
|
|
|
392,655
|
|
Noncontrolling interest
|
|
|
|
|
3,758
|
|
|
|
|
5,186
|
|
Total partners' equity
|
|
|
|
|
391,768
|
|
|
|
|
397,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and partners' equity
|
|
|
|
$
|
2,148,178
|
|
|
|
$
|
2,564,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL PARTNERS LP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RECONCILIATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
Reconciliation of gross profit to product margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks
|
|
|
|
$
|
30,422
|
|
|
|
|
$
|
21,529
|
|
|
|
|
$
|
64,415
|
|
|
|
|
$
|
64,503
|
|
|
Crude oil
|
|
|
|
|
(8,405
|
)
|
|
|
|
|
(16,818
|
)
|
|
|
|
|
3,248
|
|
|
|
|
|
(28,839
|
)
|
|
Other oils and related products
|
|
|
|
|
14,589
|
|
|
|
|
|
11,435
|
|
|
|
|
|
52,290
|
|
|
|
|
|
52,488
|
|
|
Total
|
|
|
|
|
36,606
|
|
|
|
|
|
16,146
|
|
|
|
|
|
119,953
|
|
|
|
|
|
88,152
|
|
|
Gasoline Distribution and Station Operations segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline distribution
|
|
|
|
|
84,170
|
|
|
|
|
|
88,111
|
|
|
|
|
|
230,608
|
|
|
|
|
|
220,497
|
|
|
Station operations
|
|
|
|
|
46,492
|
|
|
|
|
|
48,729
|
|
|
|
|
|
128,629
|
|
|
|
|
|
140,921
|
|
|
Total
|
|
|
|
|
130,662
|
|
|
|
|
|
136,840
|
|
|
|
|
|
359,237
|
|
|
|
|
|
361,418
|
|
|
Commercial segment
|
|
|
|
|
5,022
|
|
|
|
|
|
4,176
|
|
|
|
|
|
13,335
|
|
|
|
|
|
16,566
|
|
|
Combined product margin
|
|
|
|
|
172,290
|
|
|
|
|
|
157,162
|
|
|
|
|
|
492,525
|
|
|
|
|
|
466,136
|
|
|
Depreciation allocated to cost of sales
|
|
|
|
|
(22,196
|
)
|
|
|
|
|
(24,551
|
)
|
|
|
|
|
(67,042
|
)
|
|
|
|
|
(74,124
|
)
|
|
Gross profit
|
|
|
|
$
|
150,094
|
|
|
|
|
$
|
132,611
|
|
|
|
|
$
|
425,483
|
|
|
|
|
$
|
392,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
14,460
|
|
|
|
|
$
|
(156,583
|
)
|
|
|
|
$
|
38,956
|
|
|
|
|
$
|
(172,961
|
)
|
|
Net loss attributable to noncontrolling interest
|
|
|
|
|
418
|
|
|
|
|
|
37,032
|
|
|
|
|
|
1,242
|
|
|
|
|
|
39,076
|
|
|
Net income (loss) attributable to Global Partners LP
|
|
|
|
|
14,878
|
|
|
|
|
|
(119,551
|
)
|
|
|
|
|
40,198
|
|
|
|
|
|
(133,885
|
)
|
|
Depreciation and amortization, excluding the impact of
noncontrolling interest
|
|
|
|
|
25,998
|
|
|
|
|
|
27,391
|
|
|
|
|
|
77,885
|
|
|
|
|
|
83,073
|
|
|
Interest expense, excluding the impact of noncontrolling interest
|
|
|
|
|
20,626
|
|
|
|
|
|
21,197
|
|
|
|
|
|
65,836
|
|
|
|
|
|
65,192
|
|
|
Income tax (benefit) expense
|
|
|
|
|
(723
|
)
|
|
|
|
|
3,138
|
|
|
|
|
|
72
|
|
|
|
|
|
1,668
|
|
|
EBITDA
|
|
|
|
|
60,779
|
|
|
|
|
|
(67,825
|
)
|
|
|
|
|
183,991
|
|
|
|
|
|
16,048
|
|
|
Net loss (gain) on sale and disposition of assets
|
|
|
|
|
2,190
|
|
|
|
|
|
7,486
|
|
|
|
|
|
(7,291
|
)
|
|
|
|
|
13,966
|
|
|
Goodwill and long-lived asset impairment
|
|
|
|
|
809
|
|
|
|
|
|
147,817
|
|
|
|
|
|
809
|
|
|
|
|
|
149,972
|
|
|
Goodwill and long-lived asset impairment attributable to
noncontrolling interest
|
|
|
|
|
-
|
|
|
|
|
|
(35,834
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(35,834
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
63,778
|
|
|
|
|
$
|
51,644
|
|
|
|
|
$
|
177,509
|
|
|
|
|
$
|
144,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash provided by operating activities to
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
152,514
|
|
|
|
|
$
|
74,143
|
|
|
|
|
$
|
362,441
|
|
|
|
|
$
|
14,160
|
|
|
Net changes in operating assets and liabilities and certain non-cash
items
|
|
|
|
|
(111,544
|
)
|
|
|
|
|
(202,201
|
)
|
|
|
|
|
(244,062
|
)
|
|
|
|
|
(100,647
|
)
|
|
Net cash from operating activities and changes in operating assets
and liabilities attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(94
|
)
|
|
|
|
|
35,898
|
|
|
|
|
|
(296
|
)
|
|
|
|
|
35,675
|
|
|
Interest expense, excluding the impact of noncontrolling interest
|
|
|
|
|
20,626
|
|
|
|
|
|
21,197
|
|
|
|
|
|
65,836
|
|
|
|
|
|
65,192
|
|
|
Income tax (benefit) expense
|
|
|
|
|
(723
|
)
|
|
|
|
|
3,138
|
|
|
|
|
|
72
|
|
|
|
|
|
1,668
|
|
|
EBITDA
|
|
|
|
|
60,779
|
|
|
|
|
|
(67,825
|
)
|
|
|
|
|
183,991
|
|
|
|
|
|
16,048
|
|
|
Net loss (gain) on sale and disposition of assets
|
|
|
|
|
2,190
|
|
|
|
|
|
7,486
|
|
|
|
|
|
(7,291
|
)
|
|
|
|
|
13,966
|
|
|
Goodwill and long-lived asset impairment
|
|
|
|
|
809
|
|
|
|
|
|
147,817
|
|
|
|
|
|
809
|
|
|
|
|
|
149,972
|
|
|
Goodwill and long-lived asset impairment attributable to
noncontrolling interest
|
|
|
|
|
-
|
|
|
|
|
|
(35,834
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(35,834
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
63,778
|
|
|
|
|
$
|
51,644
|
|
|
|
|
$
|
177,509
|
|
|
|
|
$
|
144,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income (loss) to distributable cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
14,460
|
|
|
|
|
$
|
(156,583
|
)
|
|
|
|
$
|
38,956
|
|
|
|
|
$
|
(172,961
|
)
|
|
Net loss attributable to noncontrolling interest
|
|
|
|
|
418
|
|
|
|
|
|
37,032
|
|
|
|
|
|
1,242
|
|
|
|
|
|
39,076
|
|
|
Net income (loss) attributable to Global Partners LP
|
|
|
|
|
14,878
|
|
|
|
|
|
(119,551
|
)
|
|
|
|
|
40,198
|
|
|
|
|
|
(133,885
|
)
|
|
Depreciation and amortization, excluding the impact of
noncontrolling interest
|
|
|
|
|
25,998
|
|
|
|
|
|
27,391
|
|
|
|
|
|
77,885
|
|
|
|
|
|
83,073
|
|
|
Amortization of deferred financing fees and senior notes discount
|
|
|
|
|
1,703
|
|
|
|
|
|
1,868
|
|
|
|
|
|
5,374
|
|
|
|
|
|
5,506
|
|
|
Amortization of routine bank refinancing fees
|
|
|
|
|
(1,019
|
)
|
|
|
|
|
(1,168
|
)
|
|
|
|
|
(3,249
|
)
|
|
|
|
|
(3,413
|
)
|
|
Maintenance capital expenditures, excluding the impact of
noncontrolling interest
|
|
|
|
|
(9,258
|
)
|
|
|
|
|
(8,742
|
)
|
|
|
|
|
(21,943
|
)
|
|
|
|
|
(20,854
|
)
|
|
Distributable cash flow (1)(2)
|
|
|
|
$
|
32,302
|
|
|
|
|
$
|
(100,202
|
)
|
|
|
|
$
|
98,265
|
|
|
|
|
$
|
(69,573
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash provided by operating activities to
distributable cash flow
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
152,514
|
|
|
|
|
$
|
74,143
|
|
|
|
|
$
|
362,441
|
|
|
|
|
$
|
14,160
|
|
|
Net changes in operating assets and liabilities and certain non-cash
items
|
|
|
|
|
(111,544
|
)
|
|
|
|
|
(202,201
|
)
|
|
|
|
|
(244,062
|
)
|
|
|
|
|
(100,647
|
)
|
|
Net cash from operating activities and changes in operating assets
and liabilities attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(94
|
)
|
|
|
|
|
35,898
|
|
|
|
|
|
(296
|
)
|
|
|
|
|
35,675
|
|
|
Amortization of deferred financing fees and senior notes discount
|
|
|
|
|
1,703
|
|
|
|
|
|
1,868
|
|
|
|
|
|
5,374
|
|
|
|
|
|
5,506
|
|
|
Amortization of routine bank refinancing fees
|
|
|
|
|
(1,019
|
)
|
|
|
|
|
(1,168
|
)
|
|
|
|
|
(3,249
|
)
|
|
|
|
|
(3,413
|
)
|
|
Maintenance capital expenditures, excluding the impact of
noncontrolling interest
|
|
|
|
|
(9,258
|
)
|
|
|
|
|
(8,742
|
)
|
|
|
|
|
(21,943
|
)
|
|
|
|
|
(20,854
|
)
|
|
Distributable cash flow (1)(2)
|
|
|
|
$
|
32,302
|
|
|
|
|
$
|
(100,202
|
)
|
|
|
|
$
|
98,265
|
|
|
|
|
$
|
(69,573
|
)
|
(1) As defined by the Partnership's partnership agreement, distributable
cash flow is not adjusted for certain non-cash items, such as net losses
on the sale and disposition of assets and goodwill and long-lived asset
impairment charges.
(2) Distributable cash flow includes a net loss on sale and disposition
of assets of $2.2 million and $7.5 million for the three months ended
September 30, 2017 and 2016, respectively, and $6.9 million and $14.0
million for the nine months ended September 30, 2017 and 2016,
respectively. Distributable cash flow also includes a net goodwill and
long-lived asset impairment of $0.8 million and $112.0 million ($147.8
million attributed to the Partnership, offset by $35.8 million
attributed to the noncontrolling interest) for the three months ended
September 30, 2017 and 2016, respectively, and $0.8 million and $114.1
million ($149.9 million attributed to the Partnership, offset by $35.8
million attributed to the noncontrolling interest) for the nine months
ended September 30, 2017 and 2016, respectively. Excluding these
charges, distributable cash flow would have been $35.3 million and $19.3
million for the three months ended September 30, 2017 and 2016,
respectively, and $106.0 million and $58.5 million for the nine months
ended September 30, 2017 and 2016, respectively. For the nine months
ended September 30, 2017, distributable cash flow also includes a $14.2
million gain on the sale of our natural gas marketing and electricity
brokerage businesses in February 2017.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171108005827/en/
Source: Global Partners LP
Global Partners LP
Daphne H. Foster, 781-894-8800
Chief
Financial Officer
or
Edward J. Faneuil, 781-894-8800
Executive
Vice President, General Counsel and Secretary