Sunoco LP Announces Fourth Quarter and Full Year Financial and Operating Results
DALLAS, Feb. 21, 2018 /PRNewswire/ --
-- Closed on strategic divestiture of convenience stores to 7-Eleven, Inc.
and completed refinancing and equity repurchase initiatives
-- Reduced debt by over $2 billion
-- Refinanced $2.2 billion of senior notes
-- Repurchased over 17 million common limited partner units
-- Redeemed $300 million of Series A Preferred units
-- Maintained quarterly distribution of 82.55 cents and reported current
quarter cash coverage of 1.03 times
-- Cash coverage of 1.15 times for the trailing twelve months
-- Generated fourth quarter Net Income of $232 million, Adjusted
EBITDA((1)) of $158 million and Distributable Cash Flow((1)), as
adjusted, of $106 million
-- Net income and Adjusted EBITDA results include approximately $25
million of transaction costs related to the retail divestiture
Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three- and twelve-month period ended December 31, 2017.
Revenue totaled $3.0 billion, an increase of 4.8 percent, compared to $2.8 billion in the fourth quarter of 2016. The increase was the result of the average selling price of fuel being 25 cents per gallon higher than last year.
Total gross profit decreased to $277 million, compared to $296 million in the fourth quarter of 2016, as a result of lower motor fuel gross profits.
Income from continuing operations was $221 million, including $17 million of intangible impairment charges, versus a loss of $122 million in the fourth quarter of 2016, which included $227 million of goodwill impairment charges.
Income from discontinued operations, net of income taxes, was $11 million, including $23 million of goodwill impairment charges, versus a loss from discontinued operations, net of income taxes, of $463 million in the fourth quarter of 2016, which included $446 million of goodwill and intangibles impairment charges.
Net income was $232 million, or $2.01 per diluted unit, versus a net loss of $585 million, or ($6.32) per diluted unit, in the fourth quarter of 2016.
Adjusted EBITDA for the quarter totaled $158 million, compared with $154 million in the fourth quarter of 2016.
Distributable Cash Flow, as adjusted, was $106 million, compared to $63 million a year ago. This year-over-year increase reflects higher Adjusted EBITDA, decreased maintenance capital spend and a cash tax benefit compared to a cash tax expense a year ago.
On a weighted-average basis, fuel margin for all gallons sold was 15.3 cents per gallon, compared to 14.3 cents per gallon in the fourth quarter of 2016. The 1.0 cent per gallon increase was attributable to higher margins in the wholesale segment.
Net income for the wholesale segment was $47 million compared to $63 million a year ago. Adjusted EBITDA was $90 million, versus $78 million in the fourth quarter of last year. Total wholesale gallons sold were 1,346 million, compared to 1,359 million in the fourth quarter of 2016, a decrease of 1.0 percent. The Partnership earned 11.1 cents per gallon on these volumes, compared to 9.0 cents per gallon a year earlier.
Net income for the retail segment was $185 million compared to a net loss of $648 million a year ago. Adjusted EBITDA was $68 million, versus $76 million in the fourth quarter of last year. Total retail gallons sold were flat with a year ago at 626 million gallons. The Partnership earned 24.2 cents per gallon on these volumes, compared to 25.7 cents per gallon a year earlier.
Total merchandise sales increased by 0.5 percent from a year ago to $568 million((2)), reflecting an increase in merchandise and restaurant sales across the Texas oil producing regions. Merchandise sales contributed $173 million of gross profit((3)) with a retail merchandise margin of 30.6 percent, an increase of 0.7 percentage points from the fourth quarter of 2016.
Same-store merchandise sales decreased by 0.8 percent and same store gallons decreased by 1.4 percent during the fourth quarter, reflecting weakness across the East Coast. In the Texas oil producing regions, same-store merchandise sales increased by 11.2 percent, and same-store gallons increased 4.8 percent.
SUN's recent accomplishments include the following:
-- Closed the strategic divestiture of convenience stores in the
continental United States to 7-Eleven, Inc. on January 23, 2018 for
gross proceeds of approximately $3.2 billion
-- Completed the following refinancing and equity repurchase initiatives:
-- Closed the private offering of $2.2 billion of new senior notes on
January 23, 2018, comprised of $1.0 billion in aggregate principal
amount of 4.875% senior notes due 2023, $800 million in aggregate
principal amount of 5.500% senior notes due 2026 and $400 million in
aggregate principal amount of 5.875% senior notes due 2028.
Proceeds from this offering were used to redeem in full amounts owed
under existing senior notes
-- Repaid in full and terminated the term loan agreement and paid down
all outstanding amounts owed under the revolving credit facility
-- Redeemed $300 million of Series A Preferred Units held by Energy
Transfer Equity for an aggregate redemption amount of approximately
$313 million
-- Repurchased 17,286,859 Sunoco common units owned by Energy Transfer
Partners for aggregate cash consideration of approximately $540
million at a 10-day volume weighted average price of $31.2376 per
unit
-- Entered into a commission agent arrangement for the 207 West Texas sites
on December 5, 2017 with conversion expected to occur in the first
quarter of 2018
SUN's segment results and other supplementary data are provided after the financial tables below.
FY 2017 Compared to FY 2016
Revenue for the full year 2017 totaled $11.7 billion, a 17.4 percent increase compared to full year 2016. Gross profit for this period decreased 4.2 percent year-over-year to $1.1 billion.
Income from continuing operations was $326 million for the full year 2017 compared to $56 million in 2016. General and administrative expenses decreased $15 million from 2016 to $140 million. Other operating expenses increased $1 million from 2016 to $375 million and rent expenses were flat at $81 million.
Loss from discontinued operations, net of income taxes, was $177 million compared to a loss from discontinued operations, net of income taxes, of $462 million in the full year 2016.
Net income attributable to partners for the full year 2017 totaled $149 million compared to a net loss attributable to partners of $406 million a year ago. Adjusted EBITDA attributable to partners was $732 million, compared to $665 million for the 2016 period, and distributable cash flow, as adjusted was $473 million, versus $390 million for 2016.
Wholesale gallons sold to third parties increased by 2.5 percent to 5.4 billion gallons. Retail gallons sold increased by 0.4 percent to 2.5 billion gallons. On a weighted-average basis, fuel margin for all gallons sold increased to 15.2 cents per gallon for the full year 2017, versus 14.4 cents per gallon in the full year 2016.
Total merchandise sales increased by 2.7 percent from full year 2016 to $2.3 billion((4)). Merchandise sales contributed $737 million of gross profit((5)) with a retail merchandise margin of 31.6 percent, 0.1 percent increase from full year 2016.
Distribution
On January 24, 2018, the Board of Directors of SUN's general partner declared a distribution for the fourth quarter of 2017 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution was paid on February 14 to unitholders of record on February 6.
SUN's distribution coverage ratio for the fourth quarter was 1.03 times. The distribution coverage ratio on a trailing 12-month basis was 1.15 times.
Liquidity
At December 31, SUN had borrowings against its revolving line of credit of $765 million and other long-term debt of $3.6 billion. Availability on the revolving credit facility after borrowings and letters of credit commitments was $726 million. In the fourth quarter of 2017, SUN did not issue any common units through its at-the-market equity program. The leverage ratio of debt to Adjusted EBITDA, calculated in accordance with SUN's credit facility, was 5.58 times at the end of the fourth quarter.
(1) Adjusted EBITDA and Distributable Cash
Flow, as adjusted, are non-GAAP
financial measures of performance
that have limitations and should not
be considered as a substitute for net
income. Please refer to the
discussion and tables under
"Reconciliations of Non-GAAP
Measures" later in this news release
for a discussion of our use of
Adjusted EBITDA and Distributable
Cash Flow, as adjusted, and a
reconciliation to net income.
(2) Includes $426 million in merchandise
sales from discontinued operations.
(3) Includes $128 million in merchandise
gross profit from discontinued
operations.
(4) Includes $1.8 billion in merchandise
sales from discontinued operations.
(5) Includes $552 million in merchandise
gross profit from discontinued
operations.
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, February 22, at 9:30 a.m. CT (10:30 a.m. ET) to discuss fourth quarter results and recent developments. To participate, dial 877-407-6184 (toll free) or 201-389-0877 approximately 10 minutes early and ask for the Sunoco LP conference call. The call will also be accessible live and for later replay via webcast in the Investor Relations section of Sunoco's website at www.SunocoLP.com under Events and Presentations.
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
Forward-Looking Statements
This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in the Partnership's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
The information contained in this press release is available on our website at www.SunocoLP.com
Qualified Notice
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100 percent of Sunoco LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Sunoco LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Contacts
Investors:
Scott Grischow, Senior Director - Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Senior Analyst - Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director - Communications
(214) 840-5641, alyson.gomez@sunoco.com
Jeamy Molina, Senior Manager - PR & Communications
(214) 840-5594, jeamy.molina@sunoco.com
- Financial Schedules Follow -
SUNOCO LP
CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31, December 31,
2017 2016
---- ----
(in millions, except units)
Assets
Current assets:
Cash and cash equivalents $28 $103
Accounts receivable, net 541 539
Receivables from affiliates 155 3
Inventories, net 426 423
Other current assets 81 73
Assets held for sale 3,313 177
----- ---
Total current assets 4,544 1,318
Property and equipment, net 1,557 1,584
Other assets:
Goodwill 1,430 1,550
Intangible assets, net 768 775
Other noncurrent assets 45 63
Assets held for sale - 3,411
--- -----
Total assets $8,344 $8,701
====== ======
Liabilities and equity
Current liabilities:
Accounts payable $559 $616
Accounts payable to affiliates 206 109
Accrued expenses and other current liabilities 368 372
Current maturities of long-term debt 6 5
Liabilities associated with assets held for
sale 75 -
--- ---
Total current liabilities 1,214 1,102
Revolving line of credit 765 1,000
Long-term debt, net 3,519 3,509
Advances from affiliates 85 87
Deferred tax liability 389 643
Other noncurrent liabilities 125 116
Liabilities associated with assets held for
sale - 48
--- ---
Total liabilities 6,097 6,505
----- -----
Commitments and contingencies (Note 13)
Equity:
Limited partners:
Series A Preferred unitholders -affiliated
(12,000,000 units issued and outstanding as
of December 31, 2017 and no units issued and
outstanding as of December 31, 2016) 300 -
Common unitholders (99,667,999 units issued
and outstanding as of December 31, 2017 and
98,181,046 units issued and outstanding as of
December 31, 2016) 1,947 2,196
Class C unitholders -held by subsidiary
(16,410,780 units issued and outstanding as
of December 31, 2017 and December 31, 2016) - -
--- ---
Total equity 2,247 2,196
----- -----
Total liabilities and equity $8,344 $8,701
====== ======
SUNOCO LP
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited)
Year Ended December 31,
2017 2016 2015
---- ---- ----
(dollars in millions, except unit and per unit
amounts)
Revenues:
Retail motor fuel $1,577 $1,338 $1,540
Wholesale motor fuel sales
to third parties 9,278 7,812 10,104
Wholesale motor fuel sales
to affiliates 55 62 20
Merchandise 571 541 544
Rental income 89 88 81
Other 153 145 141
--- --- ---
Total revenues 11,723 9,986 12,430
Cost of sales:
Retail motor fuel cost of
sales 1,420 1,175 1,340
Wholesale motor fuel cost
of sales 8,798 7,278 9,740
Merchandise cost of sales 386 363 365
Other 11 14 5
--- --- ---
Total cost of sales 10,615 8,830 11,450
Gross profit 1,108 1,156 980
Operating expenses:
General and administrative 140 155 126
Other operating 375 374 372
Rent 81 81 79
Loss on disposal of assets
and impairment charge 114 225 1
Depreciation, amortization
and accretion 169 176 150
--- --- ---
Total operating expenses 879 1,011 728
--- ----- ---
Operating income 229 145 252
Interest expense, net 209 161 67
--- --- ---
Income (loss) from
continuing operations
before income taxes 20 (16) 185
Income tax expense
(benefit) (306) (72) 29
---- --- ---
Income from continuing
operations 326 56 156
Income (loss) from
discontinued operations,
net of income taxes (177) (462) 38
---- ---- ---
Net income (loss) and
comprehensive income
(loss) 149 (406) 194
Less: Net income and
comprehensive income
attributable to
noncontrolling interest - - 4
Less: Preacquisition income
allocated to general
partner - - 103
--- --- ---
Net income (loss) and
comprehensive income
(loss) attributable to
partners $149 $(406) $87
==== ===== ===
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2017 2016 2015
---- ---- ----
(dollars in millions, except unit and per unit
amounts)
Net income (loss) per
limited partner unit -
basic:
Continuing operations -
common units $2.13 $(0.32) $0.91
Discontinued operations -
common units (1.78) (4.94) 0.20
----- ----- ----
Net income (loss) -
common units $0.35 $(5.26) $1.11
Continuing operations -
subordinated units $ - $ - $1.17
Discontinued operations -
subordinated units - - 0.23
--- --- ----
Net income -subordinated
units $ - $ - $1.40
Net income (loss) per
limited partner unit -
diluted:
Continuing operations -
common units $2.12 $(0.32) $0.91
Discontinued operations -
common units (1.78) (4.94) 0.20
----- ----- ----
Net income (loss) -
common units $0.34 $(5.26) $1.11
Continuing operations -
subordinated units $ - $ - $1.17
Discontinued operations -
subordinated units - - 0.23
--- --- ----
Net income -subordinated
units $ - $ - $1.40
Weighted average limited
partner units
outstanding:
Common units - basic 99,270,120 93,575,530 40,253,913
Common units - diluted 99,728,354 93,603,835 40,275,651
Subordinated units -
affiliated (basic and
diluted) - - 10,010,333
Cash distribution per
unit $3.30 $3.29 $2.89
Key Operating Metrics
The following information is intended to provide investors with a reasonable basis for assessing our historical operations but should not serve as the only criteria for predicting our future performance. We operate our business in two primary operating segments, wholesale and retail, both of which are included as reportable segments.
Key operating metrics set forth below are presented as of and for the years and three months ended December 31, 2017 and 2016 and have been derived from our historical consolidated financial statements.
The accompanying footnotes to the following four key operating metrics tables can be found immediately preceding our capital spending discussion.
Year Ended December 31,
2017 2016
Wholesale Retail Total Wholesale Retail Total
--------- ------ ----- --------- ------ -----
(dollars and gallons in millions, except gross profit per gallon)
Revenues:
Retail motor fuel $ - $1,577 $1,577 $ - $1,338 $1,338
Wholesale motor fuel sales
to third parties 9,278 - 9,278 7,812 - 7,812
Wholesale motor fuel sale to
affiliates 55 - 55 62 - 62
Merchandise - 571 571 - 541 541
Rental income 77 12 89 76 12 88
Other 50 103 153 45 100 145
--- --- --- ---
Total revenues $9,460 $2,263 $11,723 $7,995 $1,991 $9,986
Gross profit:
Retail motor fuel $ - $157 $157 $ - $163 $163
Wholesale motor fuel 535 - 535 596 - 596
Merchandise - 185 185 - 178 178
Rental and other 116 115 231 110 109 219
--- --- --- ---
Total gross profit $651 $457 $1,108 $706 $450 $1,156
Net income (loss) and
comprehensive income (loss)
from continuing operations 167 159 326 252 (196) 56
Net loss and comprehensive
loss from discontinued
operations - (177) (177) - (462) (462)
--- ---- ---- --- ----
Net income (loss) and
comprehensive income (loss) $167 $(18) $149 $252 $(658) $(406)
Net income (loss) and
comprehensive income (loss)
attributable to limited
partners $167 $(18) $149 $252 $(658) $(406)
Adjusted EBITDA attributable
to partners (2) $346 $386 $732 $320 $345 $665
Distributable cash flow
attributable to partners,
as adjusted (2) $473 $390
Operating Data:
Total motor fuel gallons
sold:
Retail (3) 2,526 2,526 2,517 2,517
Wholesale 5,421 5,421 5,288 5,288
Motor fuel gross profit
cents per gallon (1):
Retail (3) 25.5¢ 25.5¢ 24.0¢ 24.0¢
Wholesale 10.5¢ 10.5¢ 9.8¢ 9.8¢
Volume-weighted average for
all gallons (3) 15.2¢ 14.4¢
Retail merchandise margin
(3) 31.6% 31.5%
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
Year Ended December 31,
2017 2016
Wholesale Retail Total Wholesale Retail Total
--------- ------ ----- --------- ------ -----
(in millions)
Net income (loss) and
comprehensive income (loss) $167 $(18) $149 $252 $(658) $(406)
Depreciation, amortization
and accretion (3) 118 85 203 94 225 319
Interest expense, net (3) 88 157 245 59 130 189
Income tax expense (benefit)
(3) (10) (248) (258) 5 (36) (31)
--- ---- ---- --- ---
EBITDA $363 $(24) $339 $410 $(339) $71
Non-cash compensation
expense (3) 2 22 24 6 7 13
Loss (gain) on disposal of
assets & impairment charge
(3) 8 392 400 (3) 683 680
Unrealized (gains) losses on
commodity derivatives (3) (3) - (3) 5 - 5
Inventory adjustments (3) (24) (4) (28) (98) (6) (104)
--- --- --- --- --- ----
Adjusted EBITDA attributable
to partners $346 $386 $732 $320 $345 $665
Cash interest expense (3) 231 178
Current income tax expense
(3) 4 -
Maintenance capital
expenditures (3) 48 106
Distributable cash flow
attributable to partners $449 $381
Transaction-related
expenses (3) 47 9
Series A Preferred
distribution (23) -
--- ---
Distributable cash flow
attributable to partners,
as adjusted $473 $390
==== ====
The following table sets forth, for the periods indicated, information concerning key measures we rely on to gauge our operating performance:
Three Months Ended December 31,
2017 2016
Wholesale Retail Total Wholesale Retail Total
--------- ------ ----- --------- ------ -----
(dollars and gallons in millions, except motor fuel pricing and gross profit per gallon)
Revenues:
Retail motor fuel $ - $414 $414 $ - $350 $350
Wholesale motor fuel sales
to third parties 2,334 - 2,334 2,267 - 2,267
Wholesale motor fuel sale to
affiliates 10 - 10 17 - 17
Merchandise - 142 142 - 133 133
Rental income 19 3 22 19 3 22
Other 12 25 37 15 20 35
--- ---
Total revenues $2,375 $584 $2,959 $2,318 $506 $2,824
Gross profit:
Retail motor fuel $ - $25 $25 $ - $37 $37
Wholesale motor fuel 151 - 151 160 - 160
Merchandise - 45 45 - 44 44
Rental and other 29 27 56 31 24 55
---
Total gross profit $180 $97 $277 $191 $105 $296
Net income (loss) and
comprehensive income (loss)
from continuing operations 47 174 221 63 (185) (122)
Net income (loss) and
comprehensive income (loss)
from discontinued
operations - 11 11 - (463) (463)
Net income (loss) and
comprehensive income (loss) $47 $185 $232 $63 $(648) $(585)
Net income (loss) and
comprehensive income (loss)
attributable to limited
partners $47 $185 $232 $63 $(648) $(585)
Adjusted EBITDA attributable
to partners (2) $90 $68 $158 $78 $76 $154
Distributable cash flow
attributable to partners,
as adjusted (2) $106 $63
Operating Data:
Total motor fuel gallons
sold:
Retail (3) 626 626 626 626
Wholesale 1,346 1,346 1,359 1,359
Motor fuel gross profit
cents per gallon (1):
Retail (3) 24.2¢ 24.2¢ 25.7¢ 25.7¢
Wholesale 11.1¢ 11.1¢ 9.0¢ 9.0¢
Volume-weighted average for
all gallons (3) 15.3¢ 14.3¢
Retail merchandise margin
(3) 30.6% 29.9%
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
Three Months Ended December 31,
2017 2016
Wholesale Retail Total Wholesale Retail Total
--------- ------ ----- --------- ------ -----
(in millions)
Net income (loss) and
comprehensive income (loss) $47 $185 $232 $63 $(648) $(585)
Depreciation, amortization
and accretion (3) 37 11 48 34 51 85
Interest expense, net (3) 20 41 61 18 38 56
Income tax expense (benefit)
(3) (9) (195) (204) 4 (43) (39)
EBITDA $95 $42 $137 $119 $(602) $(483)
Non-cash compensation
expense (3) 1 5 6 2 2 4
Loss (gain) on disposal of
assets & impairment charge
(3) 8 25 33 (2) 679 677
Unrealized (gains) losses on
commodity derivatives (3) 2 - 2 (4) - (4)
Inventory adjustments (3) (16) (4) (20) (37) (3) (40)
Adjusted EBITDA attributable
to partners $90 $68 $158 $78 $76 $154
Cash interest expense (3) 59 53
Current income tax expense
(benefit) (3) (3) 12
Maintenance capital
expenditures (3) 13 33
Distributable cash flow
attributable to partners $89 $56
Transaction-related
expenses (3) 25 7
Series A Preferred
distribution (8) -
Distributable cash flow
attributable to partners,
as adjusted $106 $63
==== ===
____________________
(1) Excludes the impact of inventory fair
value adjustments consistent with the
definition of Adjusted EBITDA.
(2) EBITDA is defined as earnings before
net interest expense, income taxes,
depreciation, amortization and
accretion expense. Adjusted EBITDA
further adjusts EBITDA to reflect
certain other non-recurring and non-
cash items. We define Adjusted EBITDA
to also include adjustments for
unrealized gains and losses on
commodity derivatives and inventory
fair value adjustments. We define
distributable cash flow as Adjusted
EBITDA less cash interest expense,
including the accrual of interest
expense related to our long-term
debt that is paid on a semi-annual
basis, Series A Preferred
distribution, current income tax
expense, maintenance capital
expenditures, and other non-cash
adjustments. Further adjustments are
made to distributable cash flow for
certain transaction-related and non-
recurring expenses that are included
in net income.
We believe EBITDA, Adjusted EBITDA and distributable
cash flow are useful to investors in evaluating our
operating performance because:
-- Adjusted EBITDA is used as a
performance measure under our
revolving credit facility;
-- securities analysts and other
interested parties use such metrics
as measures of financial performance,
ability to make distributions to our
unitholders and debt service
capabilities;
-- our management uses them for internal
planning purposes, including aspects
of our consolidated operating budget,
and capital expenditures; and
-- distributable cash flow provides
useful information to investors as it
is a widely accepted financial
indicator used by investors to
compare partnership performance, and
as it provides investors an enhanced
perspective of the operating
performance of our assets and the
cash our business is generating.
EBITDA, Adjusted EBITDA and distributable cash flow are
not recognized terms under GAAP and do not purport to
be alternatives to net income (loss) as measures of
operating performance or to cash flows from operating
activities as a measure of liquidity. EBITDA, Adjusted
EBITDA and distributable cash flow have limitations as
analytical tools, and one should not consider them in
isolation or as substitutes for analysis of our results
as reported under GAAP. Some of these limitations
include:
-- they do not reflect our total cash
expenditures, or future requirements
for capital expenditures or
contractual commitments;
-- they do not reflect changes in, or
cash requirements for, working
capital;
-- they do not reflect interest expense
or the cash requirements necessary to
service interest or principal
payments on our revolving credit
facility or term loan;
-- although depreciation and amortization
are non-cash charges, the assets
being depreciated and amortized will
often have to be replaced in the
future, and EBITDA and Adjusted
EBITDA do not reflect cash
requirements for such replacements;
and
-- as not all companies use identical
calculations, our presentation of
EBITDA, Adjusted EBITDA and
distributable cash flow may not be
comparable to similarly titled
measures of other companies.
(3) Includes amounts from discontinued
operations.
Capital Spending
SUN's gross capital expenditures for the fourth quarter were $38 million, which included $25 million for growth capital and $13 million for maintenance capital.
Gross capital expenditures for the full year 2017 were $177 million, which included $129 million for growth capital and $48 million for maintenance capital.
Excluding acquisitions, SUN expects to spend approximately $90 million on growth capital and approximately $40 million on maintenance capital for the full year 2018.
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SOURCE Sunoco LP
