Global Partners Reports Fourth-Quarter and Full-Year 2017 Financial Results WALTHAM, Mass.
Global Partners LP (NYSE: GLP) today reported financial results for the
fourth quarter and full year ended December 31, 2017.
“We delivered results in 2017 that exceeded our full-year expectations,”
said Eric Slifka, the Partnership’s President and Chief Executive
Officer. “Our full-year results were driven by solid overall performance
highlighted by our Gasoline Distribution and Station Operations segment,
which generated a $28.4 million increase in product margin
year-over-year. Our strategy of acquiring, integrating, optimizing and
enhancing assets is reflected in our October acquisition of Honey Farms,
which expanded our retail portfolio with the addition of 33 locations.
The acquisition is on course to be accretive in its first full year of
operations.”
For the fourth quarter of 2017, net income attributable to the
Partnership was $18.6 million, or $0.55 per diluted limited partner
unit; earnings before interest, taxes, depreciation and amortization
(EBITDA) was $41.0 million; and distributable cash flow (DCF) was $10.0
million.
Financial results for the fourth quarter of 2017 reflect a $5.6 million
net loss on the sale and disposition of assets; and a $16.2 million loss
on trustee taxes related to an administratively closed New York State
tax audit of the Partnership’s fuel and sales tax returns for the
periods between December 2008 through August 2013. The Partnership
believes it has meritorious defenses to recover a majority of the tax
and interest assessed. As a result of the enactment of the Tax Cuts and
Jobs Act, the Partnership’s financial results for the fourth quarter of
2017 reflect a non-cash tax benefit of $22.2 million related to the
remeasurement of certain deferred tax assets and liabilities. The
Partnership is still in the process of analyzing the impact of the Tax
Cuts and Jobs Act and, therefore, the benefit was recorded based on
provisional amounts.
Excluding the loss on sale and disposition of assets, Adjusted EBITDA
for the fourth quarter of 2017 was $46.7 million, and DCF would have
been $15.6 million. Adjusted EBITDA and DCF were both negatively
impacted by the $16.2 million loss on trustee taxes.
Gross profit for the fourth quarter of 2017 was $157.6 million compared
with $154.5 million in the fourth quarter of 2016. Combined product
margin, which is gross profit adjusted for depreciation allocated to
cost of sales, was $179.1 million for the fourth quarter of 2017
compared with $175.9 million in the fourth 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 and
12 months ended December 31, 2017 and 2016.
Gasoline Distribution and Station Operations (GDSO) segment product
margin was $142.3 million for the fourth quarter of 2017, an increase of
$30.6 million compared with the fourth quarter of 2016, primarily
reflecting higher fuel margins.
Wholesale segment product margin was $32.2 million in the fourth quarter
of 2017 compared with $56.8 million in the fourth quarter of 2016. The
decrease was due, in part, to less revenue attributed to the absence of
logistics nominations from one particular crude oil contract customer
and less favorable market conditions in distillates, partially offset by
lower railcar lease expense. Crude oil product margin for the fourth
quarter and full year of 2016 each reflected revenue of $28.0 million
related to the absence of logistics nominations from the crude oil
contract customer, while crude oil product margin for the fourth quarter
and full year of 2017 reflected revenue of $10.9 million and $43.2
million, respectively, related to the absence of logistics nominations
from that customer.
Commercial segment product margin was $4.5 million in the fourth quarter
of 2017 compared with $7.5 million in the same period of 2016, a
decrease due in part to the Partnership’s sale of its natural gas
marketing and electricity brokerage businesses in February 2017.
Sales for the fourth quarter of 2017 were $2.4 billion compared with
$2.3 billion in the fourth quarter of 2016. GDSO segment sales were $1.0
billion in the fourth quarter of 2017 compared with $904.9 million in
the fourth quarter of 2016. Wholesale segment sales were $1.2 billion
for each of the fourth quarters of 2017 and 2016. Commercial segment
sales were $242.1 million for the fourth quarter of 2017 compared with
$231.7 million in the fourth quarter of 2016.
Volume for the fourth quarter of 2017 was 1.2 billion gallons compared
with 1.3 billion gallons in the same period of 2016. GDSO volume was
400.5 million gallons in the fourth quarter of 2017 compared with 405.6
million gallons in the same period of 2016. Wholesale segment volume was
656.8 million gallons in the fourth quarter of 2017 compared with 757.9
million gallons in the fourth quarter of 2016. Commercial segment volume
was 138.8 million gallons in the fourth quarter of 2017 compared
with 161.6 million gallons in the same period of 2016.
Recent Highlights
-
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 October 1 to December
31, 2017. The distribution was paid on February 14, 2018 to
unitholders of record as of the close of business on February 9, 2018.
Business Outlook
“Following a year in which we delivered strong results, we begin 2018
well positioned to execute on our growth strategy,” Slifka said.
For full-year 2018, Global expects to generate EBITDA of $180 million to
$210 million, which guidance excludes any gain or loss on the sale and
disposition of assets, and any goodwill and long-lived asset impairment
charges. Furthermore, EBITDA guidance for 2018 excludes the recognition
of a one-time income item of approximately $52.6 million as a result of
the extinguishment of a contingent liability related to the Volumetric
Ethanol Excise Tax Credit, which tax credit program expired in 2011.
Based upon the significant passage of time from that 2011 date,
including underlying statutes of limitation, as of January 31, 2018 the
Partnership determined that the liability was no longer required. This
recognition of one-time income will not impact cash flows from
operations for the year ending December 31, 2018.
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 2018 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.
Financial Results Conference Call
Management will review the Partnership’s fourth-quarter and full-year
2017 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, 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. 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.
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GLOBAL PARTNERS LP
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands, except per unit data)
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(Unaudited)
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Three Months Ended
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Twelve Months Ended
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December 31,
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December 31,
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2017
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2016
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2017
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2016
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Sales
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$
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2,400,492
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$
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2,312,430
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$
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8,920,552
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$
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8,239,639
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Cost of sales
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2,242,923
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2,157,952
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8,337,500
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7,693,149
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Gross profit
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157,569
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154,478
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583,052
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546,490
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Costs and operating expenses:
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Selling, general and administrative expenses
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43,433
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41,344
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155,033
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149,673
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Operating expenses
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74,930
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69,829
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283,650
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288,547
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Loss on trustee taxes
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16,194
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-
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16,194
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-
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Lease exit and termination expenses
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-
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80,665
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-
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80,665
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Amortization expense
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2,425
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2,261
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9,206
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9,389
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Net loss (gain) on sale and disposition of assets
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5,667
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6,529
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(1,624
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)
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20,495
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Goodwill and long-lived asset impairment
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-
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-
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809
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149,972
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Total costs and operating expenses
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142,649
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200,628
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463,268
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698,741
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Operating income (loss)
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14,920
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(46,150
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)
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119,784
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(152,251
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)
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Interest expense
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(20,394
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)
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(21,127
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(86,230
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)
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(86,319
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)
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(Loss) income before income tax benefit (expense)
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(5,474
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)
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(67,277
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)
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33,554
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(238,570
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)
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Income tax benefit (expense)
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23,635
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1,615
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23,563
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(53
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)
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Net income (loss)
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18,161
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(65,662
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)
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57,117
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(238,623
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)
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Net loss attributable to noncontrolling interest
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393
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135
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1,635
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39,211
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Net income (loss) attributable to Global Partners LP
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18,554
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(65,527
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)
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58,752
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(199,412
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)
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Less: General partner's interest in net income (loss), including
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incentive distribution rights
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124
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(439
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)
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394
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(1,336
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)
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Limited partners' interest in net income (loss)
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$
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18,430
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$
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(65,088
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)
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$
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58,358
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$
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(198,076
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)
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Basic net income (loss) per limited partner unit (1)
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$
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0.55
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$
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(1.94
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)
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|
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$
|
1.74
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$
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(5.91
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)
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Diluted net income (loss) per limited partner unit (1)
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$
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0.55
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$
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(1.94
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)
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$
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1.74
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$
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(5.91
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Basic weighted average limited partner units outstanding
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33,645
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33,534
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33,589
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|
|
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|
33,525
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Diluted weighted average limited partner units outstanding (2)
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33,751
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33,534
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|
|
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33,634
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|
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33,525
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(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 twelve months ended December 31, 2016, as
using the effects of phantom units would have an anti-dilutive effect on
net loss per limited partner unit.
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GLOBAL PARTNERS LP
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CONSOLIDATED BALANCE SHEETS
|
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(In thousands)
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(Unaudited)
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|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
14,858
|
|
|
|
$
|
10,028
|
Accounts receivable, net
|
|
|
|
|
417,263
|
|
|
|
|
421,360
|
Accounts receivable - affiliates
|
|
|
|
|
3,773
|
|
|
|
|
3,143
|
Inventories
|
|
|
|
|
350,743
|
|
|
|
|
521,878
|
Brokerage margin deposits
|
|
|
|
|
9,681
|
|
|
|
|
27,653
|
Derivative assets
|
|
|
|
|
3,840
|
|
|
|
|
21,382
|
Prepaid expenses and other current assets
|
|
|
|
|
77,977
|
|
|
|
|
70,022
|
Total current assets
|
|
|
|
|
878,135
|
|
|
|
|
1,075,466
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
1,036,667
|
|
|
|
|
1,099,899
|
Intangible assets, net
|
|
|
|
|
56,545
|
|
|
|
|
65,013
|
Goodwill
|
|
|
|
|
312,401
|
|
|
|
|
294,768
|
Other assets
|
|
|
|
|
36,421
|
|
|
|
|
28,874
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
2,320,169
|
|
|
|
$
|
2,564,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and partners' equity
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
313,412
|
|
|
|
$
|
320,262
|
Working capital revolving credit facility - current portion
|
|
|
|
|
126,700
|
|
|
|
|
274,600
|
Environmental liabilities - current portion
|
|
|
|
|
5,009
|
|
|
|
|
5,341
|
Trustee taxes payable
|
|
|
|
|
110,321
|
|
|
|
|
101,166
|
Accrued expenses and other current liabilities
|
|
|
|
|
99,507
|
|
|
|
|
70,443
|
Derivative liabilities
|
|
|
|
|
13,708
|
|
|
|
|
27,413
|
Total current liabilities
|
|
|
|
|
668,657
|
|
|
|
|
799,225
|
|
|
|
|
|
|
|
|
|
|
|
Working capital revolving credit facility - less current portion
|
|
|
|
|
100,000
|
|
|
|
|
150,000
|
Revolving credit facility
|
|
|
|
|
196,000
|
|
|
|
|
216,700
|
Senior notes
|
|
|
|
|
661,774
|
|
|
|
|
659,150
|
Environmental liabilities - less current portion
|
|
|
|
|
52,968
|
|
|
|
|
57,724
|
Financing obligations
|
|
|
|
|
150,334
|
|
|
|
|
152,444
|
Deferred tax liabilities
|
|
|
|
|
40,105
|
|
|
|
|
66,054
|
Other long-term liabilities
|
|
|
|
|
56,013
|
|
|
|
|
64,882
|
Total liabilities
|
|
|
|
|
1,925,851
|
|
|
|
|
2,166,179
|
|
|
|
|
|
|
|
|
|
|
|
Partners' equity
|
|
|
|
|
|
|
|
|
|
|
Global Partners LP equity
|
|
|
|
|
390,953
|
|
|
|
|
392,655
|
Noncontrolling interest
|
|
|
|
|
3,365
|
|
|
|
|
5,186
|
Total partners' equity
|
|
|
|
|
394,318
|
|
|
|
|
397,841
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and partners' equity
|
|
|
|
$
|
2,320,169
|
|
|
|
$
|
2,564,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL PARTNERS LP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RECONCILIATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
Reconciliation of gross profit to product margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks
|
|
|
|
$
|
17,709
|
|
|
|
|
$
|
19,239
|
|
|
|
|
$
|
82,124
|
|
|
|
|
$
|
83,742
|
|
Crude oil
|
|
|
|
|
4,031
|
|
|
|
|
|
15,741
|
|
|
|
|
|
7,279
|
|
|
|
|
|
(13,098
|
)
|
Other oils and related products
|
|
|
|
|
10,509
|
|
|
|
|
|
21,783
|
|
|
|
|
|
62,799
|
|
|
|
|
|
74,271
|
|
Total
|
|
|
|
|
32,249
|
|
|
|
|
|
56,763
|
|
|
|
|
|
152,202
|
|
|
|
|
|
144,915
|
|
Gasoline Distribution and Station Operations segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline distribution
|
|
|
|
|
95,928
|
|
|
|
|
|
68,923
|
|
|
|
|
|
326,536
|
|
|
|
|
|
289,420
|
|
Station operations
|
|
|
|
|
46,357
|
|
|
|
|
|
42,787
|
|
|
|
|
|
174,986
|
|
|
|
|
|
183,708
|
|
Total
|
|
|
|
|
142,285
|
|
|
|
|
|
111,710
|
|
|
|
|
|
501,522
|
|
|
|
|
|
473,128
|
|
Commercial segment
|
|
|
|
|
4,523
|
|
|
|
|
|
7,452
|
|
|
|
|
|
17,858
|
|
|
|
|
|
24,018
|
|
Combined product margin
|
|
|
|
|
179,057
|
|
|
|
|
|
175,925
|
|
|
|
|
|
671,582
|
|
|
|
|
|
642,061
|
|
Depreciation allocated to cost of sales
|
|
|
|
|
(21,488
|
)
|
|
|
|
|
(21,447
|
)
|
|
|
|
|
(88,530
|
)
|
|
|
|
|
(95,571
|
)
|
Gross profit
|
|
|
|
$
|
157,569
|
|
|
|
|
$
|
154,478
|
|
|
|
|
$
|
583,052
|
|
|
|
|
$
|
546,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
18,161
|
|
|
|
|
$
|
(65,662
|
)
|
|
|
|
$
|
57,117
|
|
|
|
|
$
|
(238,623
|
)
|
Net loss attributable to noncontrolling interest
|
|
|
|
|
393
|
|
|
|
|
|
135
|
|
|
|
|
|
1,635
|
|
|
|
|
|
39,211
|
|
Net income (loss) attributable to Global Partners LP
|
|
|
|
|
18,554
|
|
|
|
|
|
(65,527
|
)
|
|
|
|
|
58,752
|
|
|
|
|
|
(199,412
|
)
|
Depreciation and amortization, excluding the impact of
noncontrolling interest
|
|
|
|
|
25,716
|
|
|
|
|
|
25,116
|
|
|
|
|
|
103,601
|
|
|
|
|
|
108,189
|
|
Interest expense, excluding the impact of noncontrolling interest
|
|
|
|
|
20,394
|
|
|
|
|
|
21,127
|
|
|
|
|
|
86,230
|
|
|
|
|
|
86,319
|
|
Income tax (benefit) expense
|
|
|
|
|
(23,635
|
)
|
|
|
|
|
(1,615
|
)
|
|
|
|
|
(23,563
|
)
|
|
|
|
|
53
|
|
EBITDA
|
|
|
|
|
41,029
|
|
|
|
|
|
(20,899
|
)
|
|
|
|
|
225,020
|
|
|
|
|
|
(4,851
|
)
|
Net loss (gain) on sale and disposition of assets
|
|
|
|
|
5,667
|
|
|
|
|
|
6,529
|
|
|
|
|
|
(1,624
|
)
|
|
|
|
|
20,495
|
|
Goodwill and long-lived asset impairment
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
809
|
|
|
|
|
|
149,972
|
|
Goodwill and long-lived asset impairment attributable to
noncontrolling interest
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(35,834
|
)
|
Adjusted EBITDA
|
|
|
|
$
|
46,696
|
|
|
|
|
$
|
(14,370
|
)
|
|
|
|
$
|
224,205
|
|
|
|
|
$
|
129,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash (used in) provided by operating
activities to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities
|
|
|
|
$
|
(13,999
|
)
|
|
|
|
$
|
(134,046
|
)
|
|
|
|
$
|
348,442
|
|
|
|
|
$
|
(119,886
|
)
|
Net changes in operating assets and liabilities and certain non-cash
items
|
|
|
|
|
58,389
|
|
|
|
|
|
93,852
|
|
|
|
|
|
(185,673
|
)
|
|
|
|
|
(6,795
|
)
|
Net cash from operating activities and changes in operating assets
and liabilities attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(120
|
)
|
|
|
|
|
(217
|
)
|
|
|
|
|
(416
|
)
|
|
|
|
|
35,458
|
|
Interest expense, excluding the impact of noncontrolling interest
|
|
|
|
|
20,394
|
|
|
|
|
|
21,127
|
|
|
|
|
|
86,230
|
|
|
|
|
|
86,319
|
|
Income tax (benefit) expense
|
|
|
|
|
(23,635
|
)
|
|
|
|
|
(1,615
|
)
|
|
|
|
|
(23,563
|
)
|
|
|
|
|
53
|
|
EBITDA
|
|
|
|
|
41,029
|
|
|
|
|
|
(20,899
|
)
|
|
|
|
|
225,020
|
|
|
|
|
|
(4,851
|
)
|
Net loss (gain) on sale and disposition of assets
|
|
|
|
|
5,667
|
|
|
|
|
|
6,529
|
|
|
|
|
|
(1,624
|
)
|
|
|
|
|
20,495
|
|
Goodwill and long-lived asset impairment
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
809
|
|
|
|
|
|
149,972
|
|
Goodwill and long-lived asset impairment attributable to
noncontrolling interest
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(35,834
|
)
|
Adjusted EBITDA
|
|
|
|
$
|
46,696
|
|
|
|
|
$
|
(14,370
|
)
|
|
|
|
$
|
224,205
|
|
|
|
|
$
|
129,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income (loss) to distributable cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
18,161
|
|
|
|
|
$
|
(65,662
|
)
|
|
|
|
$
|
57,117
|
|
|
|
|
$
|
(238,623
|
)
|
Net loss attributable to noncontrolling interest
|
|
|
|
|
393
|
|
|
|
|
|
135
|
|
|
|
|
|
1,635
|
|
|
|
|
|
39,211
|
|
Net income (loss) attributable to Global Partners LP
|
|
|
|
|
18,554
|
|
|
|
|
|
(65,527
|
)
|
|
|
|
|
58,752
|
|
|
|
|
|
(199,412
|
)
|
Depreciation and amortization, excluding the impact of
noncontrolling interest
|
|
|
|
|
25,716
|
|
|
|
|
|
25,116
|
|
|
|
|
|
103,601
|
|
|
|
|
|
108,189
|
|
Amortization of deferred financing fees and senior notes discount
|
|
|
|
|
1,715
|
|
|
|
|
|
1,906
|
|
|
|
|
|
7,089
|
|
|
|
|
|
7,412
|
|
Amortization of routine bank refinancing fees
|
|
|
|
|
(1,028
|
)
|
|
|
|
|
(1,167
|
)
|
|
|
|
|
(4,277
|
)
|
|
|
|
|
(4,580
|
)
|
Non-cash tax reform benefit
|
|
|
|
|
(22,183
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(22,183
|
)
|
|
|
|
|
-
|
|
Maintenance capital expenditures, excluding the impact of
noncontrolling interest
|
|
|
|
|
(12,775
|
)
|
|
|
|
|
(12,135
|
)
|
|
|
|
|
(34,718
|
)
|
|
|
|
|
(32,989
|
)
|
Distributable cash flow (1)(2)
|
|
|
|
$
|
9,999
|
|
|
|
|
$
|
(51,807
|
)
|
|
|
|
$
|
108,264
|
|
|
|
|
$
|
(121,380
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash (used in) provided by operating
activities to distributable cash flow
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities
|
|
|
|
$
|
(13,999
|
)
|
|
|
|
$
|
(134,046
|
)
|
|
|
|
$
|
348,442
|
|
|
|
|
$
|
(119,886
|
)
|
Net changes in operating assets and liabilities and certain non-cash
items
|
|
|
|
|
58,389
|
|
|
|
|
|
93,852
|
|
|
|
|
|
(185,673
|
)
|
|
|
|
|
(6,795
|
)
|
Net cash from operating activities and changes in operating assets
and liabilities attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(120
|
)
|
|
|
|
|
(217
|
)
|
|
|
|
|
(416
|
)
|
|
|
|
|
35,458
|
|
Amortization of deferred financing fees and senior notes discount
|
|
|
|
|
1,715
|
|
|
|
|
|
1,906
|
|
|
|
|
|
7,089
|
|
|
|
|
|
7,412
|
|
Amortization of routine bank refinancing fees
|
|
|
|
|
(1,028
|
)
|
|
|
|
|
(1,167
|
)
|
|
|
|
|
(4,277
|
)
|
|
|
|
|
(4,580
|
)
|
Non-cash tax reform benefit
|
|
|
|
|
(22,183
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(22,183
|
)
|
|
|
|
|
-
|
|
Maintenance capital expenditures, excluding the impact of
noncontrolling interest
|
|
|
|
|
(12,775
|
)
|
|
|
|
|
(12,135
|
)
|
|
|
|
|
(34,718
|
)
|
|
|
|
|
(32,989
|
)
|
Distributable cash flow (1)(2)
|
|
|
|
$
|
9,999
|
|
|
|
|
$
|
(51,807
|
)
|
|
|
|
$
|
108,264
|
|
|
|
|
$
|
(121,380
|
)
|
(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 $5.6 million and $6.5 million for the three months ended
December 31, 2017 and 2016, respectively, and $12.5 million and $20.5
million for the twelve months ended December 31, 2017 and 2016,
respectively. Distributable cash flow also includes a net goodwill and
long-lived asset impairment of $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 twelve months ended
December 31, 2017 and 2016, respectively. For each of the three and
twelve months ended December 31, 2016, distributable cash flow includes
lease exit and termination expenses of $80.7 million. Excluding the loss
on sale and disposition of assets, impairment charges and lease exit and
termination expenses, distributable cash flow would have been $15.6
million and $35.4 million for the three months ended December 31, 2017
and 2016, respectively, and $121.6 million and $93.9 million for the
twelve months ended December 31, 2017 and 2016, respectively. For the
twelve months ended December 31, 2017, distributable cash flow also
includes a $14.2 million gain on the sale of the Partnership's natural
gas marketing and electricity brokerage businesses in February 2017.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180308005589/en/ Copyright Business Wire 2018
Source: Business Wire
(March 8, 2018 - 8:00 AM EST)
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