q2 2016 investor presentation...q2 2016 investor presentation 2 forward-looking statements certain...
TRANSCRIPT
Q3 2014 Investor Presentation
Global Partners LP (NYSE: GLP)
Q2 2016 Investor Presentation
2
Forward-Looking Statements
Certain statements and information in this presentation 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 current expectations and beliefs
concerning future developments and their potential effect on Global Partners. While management believes that these forward-looking
statements are reasonable as and when made, there can be no assurance that future developments affecting Global Partners will be
those that it anticipates. All comments concerning Global Partners’ expectations for future revenues and operating results are based on
Global Partners’ forecasts for existing operations and do not include the potential impact of any future acquisitions. Global Partners’
forward-looking statements involve significant risks and uncertainties (some of which are beyond Global Partners’ control) and
assumptions that could cause actual results to differ materially from its historical experience and its present expectations or projections.
For additional information regarding known material factors that could cause Global Partners’ actual results to differ from its projected
results, please see Global Partners LP’s 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. Global
Partners 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.
3
Use of Non-GAAP Financial Measures
This presentation contains non-GAAP financial measures relating to Global Partners. A reconciliation of these measures to the m ost directly comparable GAAP measures is available in the
Appendix to this presentation. For additional detail regarding selected items impacting comparability, please visit the Inve stor Relations section of Global Partners’ website at www.globalp.com.
Product Margin
Global Partners views product margin as an important performance measure of the core profitability of its operations. The Par tnership reviews product margin monthly for consistency and trend
analysis. Global Partners defines product margin as product sales minus product costs. Product sales primarily include sales of unbranded and branded gasoline, distillates, residual oil,
renewable fuels, crude oil, natural gas and propane, as well as convenience store sales, gasoline station rental income and r evenue generated from the Partnership’s logistics activities when it
engages in the storage, transloading and shipment of products owned by others. Product costs include the cost of acquiring th e refined petroleum products, renewable fuels, crude oil, natural
gas and propane and all associated costs including shipping and handling costs to bring such products to the point of sale, a s well as product costs related to convenience store items and costs
associated with the Partnership’s logistics activities. The Partnership also looks at product margin on a per unit basis (pro duct margin divided by volume). Product margin is a non-GAAP
financial measure used by management and external users of Global Partners’ consolidated financial statements to assess the P artnership’s 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 pres ented in accordance with GAAP. In addition, Global Partners’
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, which is EBITDA adjusted for the loss on the sale and disposition of assets and impairment charges, are non-GAAP financial measures used as supplemental financial
measures by management and may be used by external users of Global Partners' consolidated financial statements, such as investors, commercial banks and research analysts, to assess the
Partnership’s:
• compliance with certain financial covenants included in its debt agreements;
• financial performance without regard to financing methods, capital structure, income taxes or historical cost basis;
• ability to generate cash sufficient to pay interest on its indebtedness and to make distributions to its partners;
• operating performance and return on invested capital as compared to those of other companies in the wholesale, marketing, storing and distribution of refined petroleum products, renewable
fuels, crude oil, natural gas and propane, 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.
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 Global Partners’ limited partners since it serves as an indicator of the Partnership's success in providing a cash return on their
investment. Distributable cash flow means the Partnership’s 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. Specifically, this financial measure indicates to investors whether or not the Partnership has generated sufficient earnings on a current or historic level that can sustain or support an increase in
its quarterly cash distribution. Distributable cash flow is a quantitative standard used by the investment community with respect to publicly traded partnerships. Distributable cash flow should not be
considered as an alternative to net income, operating income, cash flow from operations, or any other measure of financial performance presented in accordance with GAAP. In addition, Global
Partners' distributable cash flow may not be comparable to distributable cash flow or similarly titled measures of other companies.
4
Global Partners at a Glance
• Master limited partnership engaged in midstream logistics and marketing
• Leading wholesale distributor of petroleum products
• One of the largest terminal networks of petroleum products and
renewable fuels in the Northeast
• One of the largest independent owners, suppliers and operators of
gasoline stations and convenience stores in the Northeast
• Engaged in the transportation of petroleum products by rail
5
Strategy in Current Environment
Optimize Assets• Ethanol tank conversion and dock expansion project in Oregon
• Sale-leaseback of certain New England gas station sites
• Leverage storage capacity to capitalize on contango opportunities
• Pending sale of 31 non-strategic sites to Mirabito Holdings
• Ongoing divestiture of non-strategic sites through NRC Realty
Growth Initiatives • Signed long-term lease for 22 stations and c-stores in Western Mass.
• New-to-industry retail sites (ongoing)
• Raze-and-rebuild projects (ongoing)
6
Global’s DNA
Sourcing and Logistics
Integrated Marketing
Retail Wholesale Distribution C-Store Operations
Origin and Transportation Delivery and Storage
7
Global by the Numbers
Refined Petroleum Bulk Product Terminals
Barrels of Storage Capacity
Barrels of Product Sold Daily
Gas Stations Owned, Leased or Supplied
25
12.2M
346K
1,500
*Included in the ~1,500 total gas stations
290* Company-operated Convenience Stores
8
How Large is Global’s Refined Fuels Network?
Gasoline*
Diesel fuel
Heating oil
TTM as of 6/30/2016
*Total gasoline volume sold
705K
18K
37K
Automobile tanks filled/day
Diesel trucks filled/day
Homes heated/day in winter
9
Getty Realty
Agreement
Acquired
Alliance
Energy
Acquired
Mobil Stations
History of Growth
2007 2008 2009 2010 2011
Acquired three
terminals
from ExxonMobil
Acquired two
terminals
from ExxonMobil
Completed Port of
Providence
terminal project
Organic terminal
projects in
Albany, NY
Oyster Bay, NY
Philadelphia, PA
Launched offshore
bunkering
service
2012 2013
Albany Ethanol Expansion
Project with CP Railway
Acquired
Warex terminals
Contracted to supply
150M gallons to other
Mobil distributors
Receipt, storage and
distribution of Bakken crude
oil at Global Albany
Completed 100K bbl
storage tank in
Columbus, ND
Acquired
Basin Transload
Completed
Global Albany
rail expansion
Acquired
CPBR Facility
Opened NGL
facility in Albany
Signed pipeline connection agreements
with Tesoro and Meadowlark
~$1.7 Billion in Acquisitions and Investments
2014
Acquired
Warren Equities
Acquired Boston
Harbor Terminal
Completed 176K bbl storage
tank in Columbus, ND
2015 2016
Expanded retail portfolio
with the addition of 22 leased
sites in Western Mass.
Acquired NY/DC
retail portfolio from
Capitol Petroleum
10
Growth Strategy
• Enhance cash flow through product and market
diversification
• Invest in terminaling and logistics in constrained
markets
• Attract new customers through superior service and
product availability
• Optimize assets and enhance supply and logistical
efficiencies
Organic Growth Initiatives Strategic Acquisitions
• Consolidate markets and leverage scale to
achieve efficiencies
• Achieve significant operational synergies and
cost savings while increasing returns
• Create opportunities to deliver value-added
products and services
• Increase cash flow stability while enhancing
real estate portfolio
Conservative Financial
Approach and
Strong Capitalization
Business Overview
12
Business Overview
• Bulk purchase, movement,
storage and sale of:
– Gasoline and gasoline blendstocks
– Crude oil
– Other oils and related products
• Customers
– Branded and unbranded gasoline
distributors
– Home heating oil retailers and
wholesale distributors
– Refiners
CommercialWholesale
• Sales and deliveries to end
user customers of:
– Unbranded gasoline
– Heating oil, kerosene, diesel
and residual fuel
– Natural gas
– Bunker fuel
• Customers
– Government agencies
– States, towns, municipalities
– Large commercial clients
– Shipping companies
Gasoline Distribution &
Station Operations• Retail gasoline sales
– Branded and unbranded
• Rental income from:
– Dealers
– Commission agents
– Co-branding arrangements
• Sales to retail customers of:
– Convenience store items
– Car wash services
– Fresh-made and prepared foods
• Alltown and Xtra Mart stores
• Customers
– Station operators
– Gasoline jobbers
– Retail customers
13
Vertical Integration
Truck
Pipeline
Barge
Tanker
Storage Facilities
RetailGas Station
Truck
CommercialBarge
Truck
Industrial
Rail
Wholesale Rack Refinery
Rail
Barge
Consumer
Wholesale Commercial Gasoline Distribution & Station Operations
Wholesale Segment
15
Global has 11.3 million bbls of terminal capacity in the Northeast
Estimated market share1
Wholesale Terminals – Northeast
1 Based on terminal capacity (bbls in 000s)
Source: OPIS/Stalsby Petroleum Terminal Encyclopedia, 2015 and Company data
Newburgh, NY: 429K bbls
Albany, NY: 1,402K bbls
Newburgh-Warex, NY: 956K bbls
Commander/Oyster Bay, NY: 134K bbls
Port of Providence, RI: 480K bbls
Sandwich, MA: 99K bbls
Chelsea, MA: 685K bbls
Revere, MA: 2,097K bbls
Portland, ME: 665K bbls
Burlington, VT: 419K bbls
Inwood, NY: 322K bbls
Glenwood Landing, NY: 98K bbls
Wethersfield, CT: 183K bbls
Bridgeport, CT: 110K bbls
Key to Terminal Type
Distillate
Ethanol
Gasoline/Distillate/Ethanol
Residual/Distillate
Residual/Distillate/Biofuel
Distillate/Biofuel
Gasoline/Distillate/Ethanol/Crude
Propane/Butane
Crude Macungie, PA: 170K bbls
Staten Island, NY: 287K bbls
Philadelphia, PA: 260K bbls
Bayonne, NJ: 371K bbls
Springfield, MA: 54K bbls
Location Est. market capacity GLP capacity GLP % of total
Newburgh, NY 2,847 1,385 49%
Western Long Island, NY 776 554 71%
Boston Harbor, MA 9,995 2,782 28%
Vermont 427 419 98%
Providence, RI 4,631 480 10%
Albany/Rensselaer, NY 9,387 1,402 15%
Riverhead, NY: 2,045K bbls
Albany, NY: 24K bbls
16
Albany Terminal Critical Link in North American Infrastructure
• Receipt, storage and delivery of
multiple petroleum products
–Gasoline
–Ethanol
–Heating oil
–Crude oil
• Significant intermodal flexibility
–Rail
–Barge
–Truck
17
Ethanol Transloading in Oregon
• Infrastructure projects
–Converted facility’s 200,000 bbls of storage
capacity from crude to ethanol
–Expansion of terminal dock to handle
Panamax-class vessels
–Began to receive, store and sell ethanol in
Q3 2016
Gasoline Distribution & Station
Operations Segment
19
One of the Largest Operators of Gasoline Stations and
Convenience Stores in the Northeast
• Large gasoline station and C-store portfolio –Supply ~1,500 locations in 11 states
• Own or control ~850 sites; approximately 50% owned
–Brands include Mobil, CITGO, Shell, Gulf and Sunoco
• New-to-industry and organic projects –Retail site development and expansion
–Merchandising and rebranding
–Co-branding initiatives
• Acquisitions of Warren Equities and Capitol Petroleum portfolio –Strengthen footprint on East Coast
–Expand presence to mid-Atlantic
–Deepen integration between midstream and downstream assets
20
GDSO Segment is Downstream Link in Vertically Integrated
Supply Chain
Legacy Global locations
Warren locations
Capitol Petroleum locations
• Annuity business: Rental income from
Dealer Leased and Commission Agents
• Vertical integration: Integration between
supply, terminaling and wholesale
businesses and gas station sites
• Scale: ~1,500 sites with volume of 1.5
billion gallons in 2015
• Preeminent locations: Portfolio of “best-in-
class” sites in Northeast and Mid-Atlantic
• Diversification: Flexible diversity of mode of
operation, site geography and site brand
Strategic Advantages
21
Organization of GDSO Segment
Company Operated Stores
Commission Agents
Lessee Dealers
Contract Dealers
290
291
265
665Data as of 6/30/2016
22
Warren Equities: A Transformative Acquisition
for Global’s Retail Platform
• Completed in January 2015 (included 148 convenience stores, 33 commission agent locations and
approximately 330 dealers)
• Meaningfully expands scale while providing significant operational synergies and strategic options
• Strong footprint across 10 states in the Northeast with the majority of its stores primarily
concentrated in MA, CT and NY
• Projected EBITDA:
– Second full year of operations: $50 million to $60 million
23
Acquired Retail Portfolio from Capitol Petroleum Group
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East MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast Meadow
FreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeport
HempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempstead
HicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksville
Long BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong Beach
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678
95
80
278
95
478
278
398
66
97
498
270
Lessee Dealer Commissioned Agent Dealer – Supply Only
• Completed in June 2015
• Expands Global’s presence in two
attractive markets
• Portfolio primarily of 97 Mobil- and
Exxon-branded owned or leased
retail gas stations and seven dealer
supply contracts in NYC and Prince
George’s County, MD
• 51 retail locations and seven dealer
supply accounts in NYC and 46 retail
sites in Maryland/Washington, D.C.
market
• Sites sold a total of ~125 million
gallons of fuel in 2014
24
Expanded Retail Portfolio in Western Massachusetts
• 22 gas stations and convenience stores in Pittsfield and Springfield regions
• Added through long-term leases
• Shell and Mobil fuel brands
25
GDSO Segment - Growth Through Organic and M&A Initiatives
Organic Projects:
• Raze and rebuilds
• New-to-industry sites
Real Estate Focus:
• Optimize real-estate portfolio through asset sales
• Convert mode of operation of certain stations to
maximize value
Merchandising Focus:
• Store mix
• Vendor relationships and related buying power
• Co-branding alliances
M&A:
• Transactions that provide strategic and operational
advantages
Commercial Segment
27
Commercial Segment Overview
• Delivered fuels business – commercial and industrial, as well as federal agencies, states,
towns and municipalities
– Through competitive bidding process or through contracts of various terms
• Bunkering – marine vessel fueling
– Custom blending and delivered by barge or from a terminal dock to ships
• Natural gas marketing
28
Expertise and Competitive Strengths
• Expertise –Marketing, logistics and transportation
• Competitive strengths –Reliability
– Terminal locations
–Customer base
Representative Customers
Financial Summary
30
Q2 2016 Financial Performance
Please refer to Appendix for reconciliation of non-GAAP items
($ in millions) Q2 2015 Q2 2016
Product margin $166.2 $154.5
Gross profit $144.2 $129.3
Net income (loss) attributable to GLP $7.2 $(7.3)
EBITDA $48.7 $41.3
Adjusted EBITDA $48.9 $43.8
Maintenance capex $7.4 $7.3
DCF(1) $26.2 $14.2
GDSO Wholesale Commercial
Q215 Q216 Q215 Q216 Q215 Q216
Q2 Product Margin by Segment($ in millions)
Q2 2016 vs. Q2 2015 Drivers
Improved gasoline
marginsTighter crude differentials
Capitol Petroleum
acquisition
Absence of logistics
nominations from one
customer
Expansion of leased
portfolio
Impact of crude-related
fixed costs
Raze-and-rebuilds
and NTIs
Decrease in bunkering
activity
(1) Includes a loss on sale and disposition of assets and impairment charges of $0.2
million and $2.5 million for the three months ended June 30, 2015 and 2016,
respectively. Excluding these items, DCF would have been $26.4 million and $16.8
million for the respective periods.
Favorable variance Unfavorable variance
31
Financial Profile
Product Margin EBITDA
($ in millions) ($ in millions)
DCF
($ in millions)
*Includes impairment charges of $7.8 million and losses on the sale of assets of $2.3 million. Excluding these charges,
EBITDA, as adjusted, and DCF would have been $199.1 million and $87.7 million, respectively.
32
Product Margin by Business Segment
Wholesale
Crude
23%
Q2 2016
$154.5M
Commercial 3%
GDSO Product Margin ($M) Wholesale Product Margin ($M) Commercial Product Margin ($M)
Please refer to Appendix for reconciliation of non-GAAP items
Wholesale 26%
GDSO 71%
Wholesale
Distillates
& Residual
10%
Wholesale
Gasoline 16%
Gasoline
Distribution
41%
C-Store &
Third-party Rent
30%
Totals may not add due to rounding
33
Volume and Margin
• Consistency/Repeatability– Driving cars & trucks
– Heating buildings and homes
– Term contracts
– Rental income and C-Store sales
• Variability– Market and economic conditions
– Weather
– Seasonality
* Retail excludes C-store margin and rent
Product Margin (cents per gallon)Station Operations Margin ($M)
34
Period DCF Coverage
2006 1.8x
2007 1.5x
2008 1.3x
2009 1.7x
2010 1.3x
2011 1.1x
2012 1.4x
2013 1.5x
2014 2.0x
2015 1.4x
TTM 6/30/16 1.0x
DCF Coverage
($ in millions)
Conservative Distribution Policy
Note: Global went public on 10/4/2005
Cumulative Excess Cash Flow Reinvested in GLP
35
Balance Sheet at June 30, 2016
• Tangible and liquid with receivables and inventory comprising 30% of total
assets at 6/30/16
• Receivables diversified over a large customer base and turn within 10 to 20
days; write-offs have averaged 0.01% of sales per year over the past five
years
• Inventory represents about 10 to 20 days of sales
• Remaining assets are comprised primarily of $1.2B of conservatively valued
fixed assets (strategically located, non-replicable terminals and gas stations)
• $369M (30%) of total debt at 6/30/16 related to inventory financing
– Borrowed under working capital facility
• $871M (70%) is debt related to:
– Terminal operating infrastructure
– Acquisitions and capital expenditures
• Total committed facility of $1.475B*:
– $900M working capital revolver
– $575M acquisition/general corporate purpose revolver
– Credit agreement matures 4/30/2018
• Issued $375M 6.25% senior notes due 2022 and $300M 7.00% senior notes due 2023
Balance sheet figuresLiabilities and partners' equity
Current liabilities:
Accounts payable $ 286,807
Working capital revolving credit facility - current portion 218,800
Environmental liabilities - current portion 5,337
Trustee taxes payable 96,364
Accrued expenses and other current liabilities 48,471
Derivative liabilities 24,088
Total current liabilities 679,867
Working capital revolving credit facility - less current portion 150,000
Revolving credit facility 213,400
Senior notes 657,866
Environmental liabilities - less current portion 65,144
Financing obligations 152,371
Deferred tax liabilities 79,738
Other long-term liabilities 56,551
Total liabilities 2,054,937
Partners' equity
Global Partners LP equity 605,679
Noncontrolling interest 42,353
Total partners' equity 648,032
Total liabilities and partners' equity $ 2,702,969
(In thousands)
Assets
Current assets:
Cash and cash equivalents $ 8,594
Accounts receivable, net 358,142
Accounts receivable - affiliates 3,862
Inventories 443,994
Brokerage margin deposits 39,363
Derivative assets 29,590
Prepaid expenses and other current assets 67,678
Total current assets 951,223
Property and equipment, net 1,207,239
Intangible assets, net 70,200
Goodwill 435,369
Other assets 38,938
Total assets $ 2,702,969
Appendix
37
Financial Reconciliations: EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
2011
Reconciliation of net income (loss) to EBITDA
Net income (loss) (1) $ 19,352 $ 46,743 $ 41,053 $ 116,980 $ 43,264 $ 7,614 $ (8,543) $ (11,137)
Net loss (income) attributable to noncontrolling interest - - 1,562 (2,271) 299 (396) 1,233 2,733
Net income (loss) attributable to Global Partners LP (1) 19,352 46,743 42,615 114,709 43,563 7,218 (7,310) (8,404)
Depreciation and amortization, excluding the impact of noncontrolling interest 30,359 45,458 70,423 78,888 110,670 25,760 28,146 114,093
Interest expense, excluding the impact of noncontrolling interest 35,932 42,021 43,537 47,719 73,329 16,451 21,015 86,912
Income tax expense (benefit) 68 1,577 819 963 (1,873) (719) (550) (3,590)
EBITDA (1) $ 85,711 $ 135,799 $ 157,394 $ 242,279 $ 225,689 $ 48,710 $ 41,301 $ 189,011
Loss on sale and disposition of assets and impairment charges 213 2,530 10,082
Adjusted EBITDA $ 48,923 $ 43,831 $ 199,093
Reconciliation of net cash (used in) provided by operating activities to EBITDA
Net cash (used in) provided by operating activities (1) $ (17,357) $ 232,452 $ 255,147 $ 344,902 $ 70,506 $ 56,683 $ (6,467) $ 59,755
Net changes in operating assets and liabilities and certain non-cash items 67,068 (140,251) (136,960) (141,558) 88,609 (22,301) 27,204 47,668
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest - - (5,149) (9,747) (4,882) (1,404) 99 (1,734)
Interest expense, excluding the impact of noncontrolling interest 35,932 42,021 43,537 47,719 73,329 16,451 21,015 86,912
Income tax expense (benefit) 68 1,577 819 963 (1,873) (719) (550) (3,590)
EBITDA (1) $ 85,711 $ 135,799 $ 157,394 $ 242,279 $ 225,689 $ 48,710 $ 41,301 $ 189,011
Loss on sale and disposition of assets and impairment charges 213 2,530 10,082
Adjusted EBITDA $ 48,923 $ 43,831 $ 199,093
(1) Results for the year ended December 31, 2013 include a non-cash adjustment of ($19.3 million) related to the Partnership's RIN RVO and loss on fixed forward commitments.
Trailing
2015 2016
June 30,
Three Months Ended
20162014
Twelve
Months Ended
June 30,
20132012 2015
Year Ended December 31,
38
Financial Reconciliations: DCF
(In thousands)
(Unaudited)
Reconciliation of net income (loss) to distributable cash flow
Net income (loss) (1) $ 19,352 $ 46,743 $ 41,053 $ 116,980 $ 43,264 $ 7,614 $ (8,543) $ (11,137)
Net loss (income) attributable to noncontrolling interest - - 1,562 (2,271) 299 (396) 1,233 2,733
Net income (loss) attributable to Global Partners LP (1) 19,352 46,743 42,615 114,709 43,563 7,218 (7,310) (8,404)
Depreciation and amortization, excluding the impact of noncontrolling interest 30,359 45,458 70,423 78,888 110,670 25,760 28,146 114,093
Amortization of deferred financing fees and senior notes discount 4,723 5,753 7,265 6,186 6,988 1,700 1,866 7,288
Amortization of routine bank refinancing fees (3,467) (4,073) (4,072) (4,444) (4,516) (1,126) (1,168) (4,514)
Maintenance capital expenditures, excluding the impact of noncontrolling interest (4,226) (13,112) (10,977) (34,115) (29,850) (7,380) (7,286) (30,861)
Distributable cash flow (1) $ 46,741 $ 80,769 $ 105,254 $ 161,224 $ 126,855 $ 26,172 $ 14,248 $ 77,602
Reconciliation of net cash (used in) provided by operating activities to
distributable cash flow
Net cash (used in) provided by operating activities (1) $ (17,357) $ 232,452 $ 255,147 $ 344,902 $ 70,506 $ 56,683 $ (6,467) $ 59,755
Net changes in operating assets and liabilities and certain non-cash items 67,068 (140,251) (136,960) (141,558) 88,609 (22,301) 27,204 47,668
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest - - (5,149) (9,747) (4,882) (1,404) 99 (1,734)
Amortization of deferred financing fees and senior notes discount 4,723 5,753 7,265 6,186 6,988 1,700 1,866 7,288
Amortization of routine bank refinancing fees (3,467) (4,073) (4,072) (4,444) (4,516) (1,126) (1,168) (4,514)
Maintenance capital expenditures, excluding the impact of noncontrolling interest (4,226) (13,112) (10,977) (34,115) (29,850) (7,380) (7,286) (30,861)
Distributable cash flow (1) $ 46,741 $ 80,769 $ 105,254 $ 161,224 $ 126,855 $ 26,172 $ 14,248 $ 77,602
(1) Results for the year ended December 31, 2013 include a non-cash adjustment of ($19.3 million) related to the Partnership's RIN RVO and loss on fixed forward commitments.
(2) Distributable cash flow includes a loss on sale and disposition of assets and impairment charges of $0.2 million and $2.5 million for the three months ended June 30, 2015 and 2016, respectively. Excluding the loss on sale
and disposition of assets and impairment charges, distributable cash flow would have been $26.4 million and $16.8 million for the three months ended June 30, 2015 and 2016, respectively.
Year Ended December 31,
2011 2012
Trailing
Twelve
20162015 (2) 2016 (2)
Months Ended
June 30, June 30,
Three Months Ended
2013 20152014
39
Financial Reconciliations: Product Margin
(In thousands)
(Unaudited)
Reconciliation of gross profit to product margin
Wholesale segment:
Gasoline and gasoline blendstocks (1) $ 54,065 $ 56,224 $ 54,639 $ 43,147 $ 71,713 $ 66,031 $ 17,708 $ 26,612 $ 61,468
Crude oil - 12,301 35,538 92,807 141,965 74,182 36,828 (9,648) 10,076
Other oils and related products 90,346 55,308 55,252 66,916 79,376 67,709 6,405 15,804 67,350
Total (1) 144,411 123,833 145,429 202,870 293,054 207,922 60,941 32,768 138,894
Gasoline Distribution and Station Operations segment:
Gasoline distribution 14,017 56,690 139,706 150,147 189,439 276,848 53,209 66,999 294,326
Station operations 8,885 31,713 67,011 78,833 93,939 178,487 45,066 49,267 188,890
Total 22,902 88,403 206,717 228,980 283,378 455,335 98,275 116,266 483,216
Commercial segment 15,033 21,975 18,652 28,359 29,716 29,201 7,023 5,480 23,010
Combined product margin (1) 182,346 234,211 370,798 460,209 606,148 692,458 166,239 154,514 645,120
Depreciation allocated to cost of sales (15,628) (24,391) (36,683) (55,653) (61,361) (94,789) (22,051) (25,172) (100,796)
Gross profit (1) $ 166,718 $ 209,820 $ 334,115 $ 404,556 $ 544,787 $ 597,669 $ 144,188 $ 129,342 $ 544,324
(1) Results for the year ended December 31, 2013 include a non-cash adjustment of ($19.3 million) related to the Partnership's RIN RVO and loss on fixed forward commitments.
201520132010 2011 2012 2014 2015 2016 2016
Three Months Ended
June 30,Year Ended December 31,
Trailing
Twelve
Months Ended
June 30,