WALTHAM, Mass.--(BUSINESS WIRE)--Mar. 7, 2019--
Global Partners LP (NYSE: GLP) today reported financial results for the
fourth quarter and full year ended December 31, 2018.
“We capped 2018 with a record fourth quarter in our Gasoline
Distribution and Station Operations (GDSO) segment,” said Eric Slifka,
the Partnership’s President and Chief Executive Officer. “GDSO product
margin increased more than $46 million in the quarter, primarily driven
by significantly stronger than expected fuel margins in November and
December and a full quarter’s performance of Champlain Oil and Cheshire
Oil, which were acquired in July 2018.
“Our full-year results reflect the continued focus on optimizing our
assets and expanding the footprint of our business,” Slifka said. “In
GDSO, the Champlain and Cheshire acquisitions added 136 sites, including
62 owned properties, to our retail portfolio. These transactions further
leverage our terminal assets and drive economies of scale.”
For the fourth quarter of 2018 net income attributable to the
Partnership was $52.5 million, or $1.47 per diluted common limited
partner unit, compared with net income attributable to the Partnership
of $18.6 million, or $0.55 per diluted common limited partner unit, for
the same period of 2017.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
was $109.7 million in the fourth quarter of 2018 compared with $41.0
million in the year-earlier period.
Distributable cash flow (DCF) was $67.6 million in the fourth quarter of
2018 compared with $10.0 million in the same period of 2017. Results for
the fourth quarter of 2017 included a net loss on sale and disposition
of assets of $5.6 million. Excluding this charge, distributable cash
flow would have been $15.6 million for the three months ended December
31, 2017.
Adjusted EBITDA was $109.8 million in the fourth quarter of 2018
compared with $46.7 million in the fourth quarter of 2017.
Gross profit in the fourth quarter of 2018 was $221.8 million compared
with $157.6 million in the fourth quarter of 2017, primarily due to the
strong GDSO fuel margins in the last two months of 2018. Combined
product margin, which is gross profit adjusted for depreciation
allocated to cost of sales, was $244.1 million in the fourth quarter of
2018 compared with $179.1 million in the fourth quarter of 2017.
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 and
12 months ended December 31, 2018 and 2017.
GDSO segment product margin was $188.5 million in the fourth quarter of
2018, an increase of $46.2 million from $142.3 million in the fourth
quarter of 2017. This performance primarily reflected the strong fuel
margins in November and December and, to a lesser extent, the
acquisitions of Champlain Oil and Cheshire Oil.
Wholesale segment product margin was $48.5 million in the fourth quarter
of 2018 compared with $32.2 million in the fourth quarter of 2017,
primarily due to more favorable market conditions in distillates and
gasoline blendstocks.
Commercial segment product margin was $7.1 million in the fourth quarter
of 2018 compared with $4.5 million in the same period of 2017.
Sales in the fourth quarter of 2018 were $3.3 billion compared with $2.4
billion in the fourth quarter of 2017. Wholesale segment sales were $1.8
billion in the fourth quarter of 2018 compared with $1.2 billion in the
fourth quarter of 2017. GDSO segment sales were $1.1 billion in the
fourth quarter of 2018 compared with $1.0 billion in the fourth quarter
of 2017. Commercial segment sales were $0.4 billion in the fourth
quarter of 2018 compared with $0.2 billion in the fourth quarter of 2017.
Volume in the fourth quarter of 2018 was 1.6 billion gallons compared
with 1.2 billion gallons in the same period of 2017. Wholesale segment
volume was 1.0 billion gallons in the fourth quarter of 2018 compared
with 656.8 million gallons in the fourth quarter of 2017. GDSO volume
was 415.2 million gallons in the fourth quarter of 2018 compared with
400.5 million gallons in the same period of 2017. Commercial segment
volume was 179.2million gallons in the fourth quarter of 2018
compared with 138.8 million gallons in the same period of 2017.
Recent Highlights
-
Global’s Board of Directors announced a quarterly cash distribution of
$0.50 per unit, or $2.00 per unit on an annualized basis, on all of
its outstanding common units for the period from October 1 to December
31, 2018. The distribution was paid on February 14, 2019 to
unitholders of record as of the close of business on February 8, 2019.
-
Global’s Board of Directors announced a quarterly cash distribution of
$0.609375 per unit, or $2.4375 per unit on an annualized basis, on the
Partnership’s Series A preferred units for the period from November
15, 2018 through February 14, 2019. This distribution was paid on
February 15, 2019 to holders of record as of the opening of business
on February 1, 2019.
Business Outlook
“We continue to demonstrate our expertise in acquiring, integrating,
operating and leveraging high-quality assets,” Slifka said. “Looking
ahead, we are well positioned to capitalize on opportunities across our
businesses.”
For full-year 2019, Global expects to generate EBITDA of $200 million to
$225 million. This EBITDA guidance excludes gains or losses on the sale
and disposition of assets and goodwill and long-lived asset 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.
With respect to 2019 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 sale 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.
Financial Results Conference Call
Management will review the Partnership’s fourth-quarter and full-year
2018 financial results in a teleconference call for analysts and
investors today.
Time:
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10:00 a.m. ET
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Dial-in numbers:
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(877) 709-8155 (U.S. and Canada)
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(201) 689-8881 (International)
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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 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 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, gasoline blendstocks,
renewable fuels, crude oil 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 charges. 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 our partnership agreement also
determines our ability to make cash distributions on our incentive
distribution rights. The investment community also uses a distributable
cash flow metric similar to the metric used in our 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 distributions on preferred or common
units or support an increase in quarterly cash distributions on common
units. Our 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
With approximately 1,600 locations primarily in the Northeast, Global
Partners is one of the region’s largest independent owners, suppliers
and operators of gasoline stations and convenience stores. Global also
owns, controls or has access to one of the largest terminal networks in
New England and New York, through which it distributes gasoline,
distillates, residual oil and renewable fuels to wholesalers, retailers
and commercial customers. In addition, Global engages in the
transportation of petroleum products and renewable fuels by rail from
the mid-continental U.S. and Canada. Global, a master limited
partnership, trades on the New York Stock Exchange under the ticker
symbol “GLP.” 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.
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GLOBAL PARTNERS LP CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per unit data) (Unaudited) |
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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2018 |
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2017 |
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2018 |
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2017 |
Sales
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$
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3,274,301
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$
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2,400,492
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$
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12,672,602
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$
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8,920,552
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Cost of sales
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3,052,457
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2,242,923
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12,022,193
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8,337,500
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Gross profit
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221,844
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157,569
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650,409
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583,052
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Costs and operating expenses:
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Selling, general and administrative expenses
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49,555
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43,433
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171,002
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155,033
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Operating expenses
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87,072
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74,930
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321,115
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283,650
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Loss (gain) on trustee taxes
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-
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16,194
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(52,627
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)
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16,194
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Lease exit and termination gain
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-
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-
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(3,506
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)
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-
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Amortization expense
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2,976
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2,425
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10,960
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9,206
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Net loss (gain) on sale and disposition of assets
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40
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5,667
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5,880
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(1,624
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)
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Goodwill and long-lived asset impairment
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-
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-
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414
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809
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Total costs and operating expenses
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139,643
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142,649
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453,238
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463,268
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Operating income
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82,201
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14,920
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197,171
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119,784
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Interest expense
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(23,508
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)
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(20,394
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)
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(89,145
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)
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(86,230
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)
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Income (loss) before income tax (expense) benefit
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58,693
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(5,474
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)
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108,026
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33,554
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Income tax (expense) benefit
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(6,523
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)
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23,635
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(5,623
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)
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23,563
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Net income
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52,170
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18,161
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102,403
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57,117
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Net loss attributable to noncontrolling interest
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360
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393
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1,502
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1,635
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Net income attributable to Global Partners LP
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52,530
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18,554
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103,905
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58,752
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Less: General partner's interest in net income, including
incentive distribution rights
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554
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124
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1,033
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394
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Less: Series A preferred limited partner interest in net income
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1,682
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-
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2,691
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-
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Net income attributable common limited partners
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$
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50,294
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$
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18,430
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$
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100,181
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$
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58,358
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Basic net income per common limited partner unit (1)
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$
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1.49
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$
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0.55
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$
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2.97
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$
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1.74
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Diluted net income per common limited partner unit (1)
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$
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1.47
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$
|
0.55
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|
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$
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2.95
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|
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$
|
1.74
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|
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Basic weighted average common limited partner units outstanding
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33,750
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|
|
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|
33,645
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|
33,701
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33,589
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Diluted weighted average limited partner units outstanding
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34,066
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33,751
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33,972
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33,634
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(1)
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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 or losses
is assumed to be allocated to the common unitholders and to the
General Partner's general partner interest. Net income
attributable to common limited partners is divided by the weighted
average common units outstanding in computing the net income per
limited partner unit.
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GLOBAL PARTNERS LP CONSOLIDATED BALANCE SHEETS (In
thousands) (Unaudited) |
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December 31, |
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2018 |
|
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2017 |
Assets |
|
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Current assets:
|
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|
|
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|
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Cash and cash equivalents
|
|
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|
$
|
8,121
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|
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$
|
14,858
|
Accounts receivable, net
|
|
|
|
|
|
334,777
|
|
|
|
417,263
|
Accounts receivable - affiliates
|
|
|
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|
|
5,435
|
|
|
|
3,773
|
Inventories
|
|
|
|
|
|
386,442
|
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|
|
350,743
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Brokerage margin deposits
|
|
|
|
|
|
14,766
|
|
|
|
9,681
|
Derivative assets
|
|
|
|
|
|
26,390
|
|
|
|
3,840
|
Prepaid expenses and other current assets
|
|
|
|
|
|
98,977
|
|
|
|
77,977
|
Total current assets
|
|
|
|
|
|
874,908
|
|
|
|
878,135
|
|
|
|
|
|
|
|
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Property and equipment, net
|
|
|
|
|
|
1,132,632
|
|
|
|
1,036,667
|
Intangible assets, net
|
|
|
|
|
|
58,532
|
|
|
|
56,545
|
Goodwill
|
|
|
|
|
|
327,406
|
|
|
|
312,401
|
Other assets
|
|
|
|
|
|
30,813
|
|
|
|
36,421
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
$
|
2,424,291
|
|
|
$
|
2,320,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and partners' equity |
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
308,979
|
|
|
$
|
313,412
|
Working capital revolving credit facility - current portion
|
|
|
|
|
|
103,300
|
|
|
|
126,700
|
Environmental liabilities - current portion
|
|
|
|
|
|
6,092
|
|
|
|
5,009
|
Trustee taxes payable
|
|
|
|
|
|
42,613
|
|
|
|
110,321
|
Accrued expenses and other current liabilities
|
|
|
|
|
|
117,274
|
|
|
|
99,507
|
Derivative liabilities
|
|
|
|
|
|
4,494
|
|
|
|
13,708
|
Total current liabilities
|
|
|
|
|
|
582,752
|
|
|
|
668,657
|
|
|
|
|
|
|
|
|
|
|
|
Working capital revolving credit facility - less current portion
|
|
|
|
|
|
150,000
|
|
|
|
100,000
|
Revolving credit facility
|
|
|
|
|
|
220,000
|
|
|
|
196,000
|
Senior notes
|
|
|
|
|
|
664,455
|
|
|
|
661,774
|
Environmental liabilities - less current portion
|
|
|
|
|
|
57,132
|
|
|
|
52,968
|
Financing obligations
|
|
|
|
|
|
149,997
|
|
|
|
150,334
|
Deferred tax liabilities
|
|
|
|
|
|
42,856
|
|
|
|
40,105
|
Other long-term liabilities
|
|
|
|
|
|
57,905
|
|
|
|
56,013
|
Total liabilities
|
|
|
|
|
|
1,925,097
|
|
|
|
1,925,851
|
|
|
|
|
|
|
|
|
|
|
|
Partners' equity
|
|
|
|
|
|
|
|
|
|
|
Global Partners LP equity
|
|
|
|
|
|
497,331
|
|
|
|
390,953
|
Noncontrolling interest
|
|
|
|
|
|
1,863
|
|
|
|
3,365
|
Total partners' equity
|
|
|
|
|
|
499,194
|
|
|
|
394,318
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and partners' equity
|
|
|
|
|
$
|
2,424,291
|
|
|
$
|
2,320,169
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL PARTNERS LP FINANCIAL RECONCILIATIONS (In
thousands) (Unaudited) |
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
Reconciliation of gross profit to product margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks
|
|
|
|
|
$
|
22,318
|
|
|
|
$
|
17,709
|
|
|
|
|
$
|
76,741
|
|
|
|
$
|
82,124
|
|
Crude oil
|
|
|
|
|
|
4,274
|
|
|
|
|
4,031
|
|
|
|
|
|
7,159
|
|
|
|
|
7,279
|
|
Other oils and related products
|
|
|
|
|
|
21,912
|
|
|
|
|
10,509
|
|
|
|
|
|
53,389
|
|
|
|
|
62,799
|
|
Total
|
|
|
|
|
|
48,504
|
|
|
|
|
32,249
|
|
|
|
|
|
137,289
|
|
|
|
|
152,202
|
|
Gasoline Distribution and Station Operations segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline distribution
|
|
|
|
|
|
134,869
|
|
|
|
|
95,928
|
|
|
|
|
|
373,303
|
|
|
|
|
326,536
|
|
Station operations
|
|
|
|
|
|
53,619
|
|
|
|
|
46,357
|
|
|
|
|
|
203,098
|
|
|
|
|
174,986
|
|
Total
|
|
|
|
|
|
188,488
|
|
|
|
|
142,285
|
|
|
|
|
|
576,401
|
|
|
|
|
501,522
|
|
Commercial segment
|
|
|
|
|
|
7,087
|
|
|
|
|
4,523
|
|
|
|
|
|
23,611
|
|
|
|
|
17,858
|
|
Combined product margin
|
|
|
|
|
|
244,079
|
|
|
|
|
179,057
|
|
|
|
|
|
737,301
|
|
|
|
|
671,582
|
|
Depreciation allocated to cost of sales
|
|
|
|
|
|
(22,235
|
)
|
|
|
|
(21,488
|
)
|
|
|
|
|
(86,892
|
)
|
|
|
|
(88,530
|
)
|
Gross profit
|
|
|
|
|
$
|
221,844
|
|
|
|
$
|
157,569
|
|
|
|
|
$
|
650,409
|
|
|
|
$
|
583,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to EBITDA and Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
52,170
|
|
|
|
$
|
18,161
|
|
|
|
|
$
|
102,403
|
|
|
|
$
|
57,117
|
|
Net loss attributable to noncontrolling interest
|
|
|
|
|
|
360
|
|
|
|
|
393
|
|
|
|
|
|
1,502
|
|
|
|
|
1,635
|
|
Net income attributable to Global Partners LP
|
|
|
|
|
|
52,530
|
|
|
|
|
18,554
|
|
|
|
|
|
103,905
|
|
|
|
|
58,752
|
|
Depreciation and amortization, excluding the impact of
noncontrolling interest
|
|
|
|
|
|
27,156
|
|
|
|
|
25,716
|
|
|
|
|
|
105,639
|
|
|
|
|
103,601
|
|
Interest expense, excluding the impact of noncontrolling interest
|
|
|
|
|
|
23,508
|
|
|
|
|
20,394
|
|
|
|
|
|
89,145
|
|
|
|
|
86,230
|
|
Income tax expense (benefit)
|
|
|
|
|
|
6,523
|
|
|
|
|
(23,635
|
)
|
|
|
|
|
5,623
|
|
|
|
|
(23,563
|
)
|
EBITDA
|
|
|
|
|
|
109,717
|
|
|
|
|
41,029
|
|
|
|
|
|
304,312
|
|
|
|
|
225,020
|
|
Net loss (gain) on sale and disposition of assets
|
|
|
|
|
|
40
|
|
|
|
|
5,667
|
|
|
|
|
|
5,880
|
|
|
|
|
(1,624
|
)
|
Goodwill and long-lived asset impairment
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
414
|
|
|
|
|
809
|
|
Adjusted EBITDA (1)
|
|
|
|
|
$
|
109,757
|
|
|
|
$
|
46,696
|
|
|
|
|
$
|
310,606
|
|
|
|
$
|
224,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash provided by (used in) operating
activities to EBITDA and Adjusted EBITDA |
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
|
$
|
214,758
|
|
|
|
$
|
(13,999
|
)
|
|
|
|
$
|
168,856
|
|
|
|
$
|
348,442
|
|
Net changes in operating assets and liabilities and certain non-cash
items
|
|
|
|
|
|
(135,160
|
)
|
|
|
|
58,389
|
|
|
|
|
|
40,385
|
|
|
|
|
(185,673
|
)
|
Net cash from operating activities and changes in operating assets
and liabilities attributable to noncontrolling interest
|
|
|
|
|
|
88
|
|
|
|
|
(120
|
)
|
|
|
|
|
303
|
|
|
|
|
(416
|
)
|
Interest expense, excluding the impact of noncontrolling interest
|
|
|
|
|
|
23,508
|
|
|
|
|
20,394
|
|
|
|
|
|
89,145
|
|
|
|
|
86,230
|
|
Income tax expense (benefit)
|
|
|
|
|
|
6,523
|
|
|
|
|
(23,635
|
)
|
|
|
|
|
5,623
|
|
|
|
|
(23,563
|
)
|
EBITDA
|
|
|
|
|
|
109,717
|
|
|
|
|
41,029
|
|
|
|
|
|
304,312
|
|
|
|
|
225,020
|
|
Net loss (gain) on sale and disposition of assets
|
|
|
|
|
|
40
|
|
|
|
|
5,667
|
|
|
|
|
|
5,880
|
|
|
|
|
(1,624
|
)
|
Goodwill and long-lived asset impairment
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
414
|
|
|
|
|
809
|
|
Adjusted EBITDA (1)
|
|
|
|
|
$
|
109,757
|
|
|
|
$
|
46,696
|
|
|
|
|
$
|
310,606
|
|
|
|
$
|
224,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to distributable cash flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
52,170
|
|
|
|
$
|
18,161
|
|
|
|
|
$
|
102,403
|
|
|
|
$
|
57,117
|
|
Net loss attributable to noncontrolling interest
|
|
|
|
|
|
360
|
|
|
|
|
393
|
|
|
|
|
|
1,502
|
|
|
|
|
1,635
|
|
Net income attributable to Global Partners LP
|
|
|
|
|
|
52,530
|
|
|
|
|
18,554
|
|
|
|
|
|
103,905
|
|
|
|
|
58,752
|
|
Depreciation and amortization, excluding the impact of
noncontrolling interest
|
|
|
|
|
|
27,156
|
|
|
|
|
25,716
|
|
|
|
|
|
105,639
|
|
|
|
|
103,601
|
|
Amortization of deferred financing fees and senior notes discount
|
|
|
|
|
|
1,723
|
|
|
|
|
1,715
|
|
|
|
|
|
6,873
|
|
|
|
|
7,089
|
|
Amortization of routine bank refinancing fees
|
|
|
|
|
|
(1,022
|
)
|
|
|
|
(1,028
|
)
|
|
|
|
|
(4,088
|
)
|
|
|
|
(4,277
|
)
|
Non-cash tax reform benefit
|
|
|
|
|
|
-
|
|
|
|
|
(22,183
|
)
|
|
|
|
|
-
|
|
|
|
|
(22,183
|
)
|
Maintenance capital expenditures, excluding the impact of
noncontrolling interest
|
|
|
|
|
|
(12,781
|
)
|
|
|
|
(12,775
|
)
|
|
|
|
|
(38,641
|
)
|
|
|
|
(34,718
|
)
|
Distributable cash flow (2)(3)
|
|
|
|
|
|
67,606
|
|
|
|
|
9,999
|
|
|
|
|
|
173,688
|
|
|
|
|
108,264
|
|
Distributions to Series A preferred unitholders (4)
|
|
|
|
|
|
(1,682
|
)
|
|
|
|
-
|
|
|
|
|
|
(2,691
|
)
|
|
|
|
-
|
|
Distributable cash flow after distributions to Series A preferred
unitholders
|
|
|
|
|
$
|
65,924
|
|
|
|
$
|
9,999
|
|
|
|
|
$
|
170,997
|
|
|
|
$
|
108,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash provided by (used in) operating
activities to distributable cash flow |
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
|
$
|
214,758
|
|
|
|
$
|
(13,999
|
)
|
|
|
|
$
|
168,856
|
|
|
|
$
|
348,442
|
|
Net changes in operating assets and liabilities and certain non-cash
items
|
|
|
|
|
|
(135,160
|
)
|
|
|
|
58,389
|
|
|
|
|
|
40,385
|
|
|
|
|
(185,673
|
)
|
Net cash from operating activities and changes in operating assets
and liabilities attributable to noncontrolling interest
|
|
|
|
|
|
88
|
|
|
|
|
(120
|
)
|
|
|
|
|
303
|
|
|
|
|
(416
|
)
|
Amortization of deferred financing fees and senior notes discount
|
|
|
|
|
|
1,723
|
|
|
|
|
1,715
|
|
|
|
|
|
6,873
|
|
|
|
|
7,089
|
|
Amortization of routine bank refinancing fees
|
|
|
|
|
|
(1,022
|
)
|
|
|
|
(1,028
|
)
|
|
|
|
|
(4,088
|
)
|
|
|
|
(4,277
|
)
|
Non-cash tax reform benefit
|
|
|
|
|
|
-
|
|
|
|
|
(22,183
|
)
|
|
|
|
|
-
|
|
|
|
|
(22,183
|
)
|
Maintenance capital expenditures, excluding the impact of
noncontrolling interest
|
|
|
|
|
|
(12,781
|
)
|
|
|
|
(12,775
|
)
|
|
|
|
|
(38,641
|
)
|
|
|
|
(34,718
|
)
|
Distributable cash flow (2)(3)
|
|
|
|
|
|
67,606
|
|
|
|
|
9,999
|
|
|
|
|
|
173,688
|
|
|
|
|
108,264
|
|
Distributions to Series A preferred unitholders (4)
|
|
|
|
|
|
(1,682
|
)
|
|
|
|
-
|
|
|
|
|
|
(2,691
|
)
|
|
|
|
-
|
|
Distributable cash flow after distributions to Series A preferred
unitholders
|
|
|
|
|
$
|
65,924
|
|
|
|
$
|
9,999
|
|
|
|
|
$
|
170,997
|
|
|
|
$
|
108,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Adjusted EBITDA for the twelve months ended December 31, 2018
includes a one-time gain of approximately $52.6 million as a result
of the extinguishment of a contingent liability related to a
Volumetric Ethanol Excise Tax Credit.
|
|
|
|
(2)
|
|
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.
|
|
|
|
(3)
|
|
Distributable cash flow includes a net loss on sale and
disposition of assets of $0.1 million and $5.6 million for the
three months ended December 31, 2018 and 2017, respectively, and a
net loss on sale and disposition of assets and a net goodwill and
long-lived asset impairment of $6.3 million and $13.3 million for
the twelve months ended December 31, 2018 and 2017,
respectively. Excluding these charges, distributable cash flow
would have been $67.7 million and $15.6 million for the three
months ended December 31, 2018 and 2017, respectively, and $180.0
million and $121.6 million for the twelve months ended December
31, 2018 and 2017, respectively. For the twelve months ended
December 31, 2018, distributable cash flow includes a one-time
gain of approximately $52.6 million as a result of the
extinguishment of a contingent liability related to a Volumetric
Ethanol Excise Tax Credit. For the twelve months ended December
31, 2017, distributable cash flow includes a $14.2 million gain on
the sale of the Partnership's natural gas marketing and
electricity brokerage businesses in February 2017.
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(4)
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Distributions to Series A preferred unitholders represent the
distributions earned by the preferred unitholders during the period.
Distributions on the Series A Preferred Units are cumulative and
payable quarterly in arrears on February 15, May 15, August 15 and
November 15 of each year.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190307005351/en/
Source: Global Partners LP
Daphne H. Foster
Chief Financial Officer
Global
Partners LP
(781) 894-8800
Edward J. Faneuil
Executive
Vice President, General Counsel and Secretary
Global Partners LP
(781)
894-8800