Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Global Partners LP (NYSE: GLP)Investor Presentation
July 31, 2018
Forward-Looking Statements
2
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 Global Partners’ currentexpectations 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 thePartnership’s projectedresults, please see Global Partners’ filings with the SEC, including itsAnnual 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 orotherwise.
Global Partners has filed a registration statement (including a prospectus and prospectus supplement) with the Securities and Exchange Commission (“SEC”) for an offering of securities. You should read the prospectus in that registration statement and the prospectus supplement and other documents Global Partners has filed with the SEC for more complete information about Global Partners. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. This presentation is not a prospectus and is not an offer to sell securities. A registration statement relating to the securities of Global Partners has been filed with, and declared effective by, the SEC. Any offering of the securities is being made by means of a prospectus supplement only.
Use of Non-GAAP Financial Measures
3
This presentation contains non-GAAP financial measures relating to Global Partners. A reconciliation of these measures to the most directly comparable GAAP measures is available in the Appendix to this presentation.
Product MarginGlobal 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 EBITDAEBITDA 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 charges. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income, and these measures may vary among other companies. Therefore, EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
Distributable Cash FlowDistributable 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.
Business Overview
5
Global Partners at a Glance
• Master limited partnership engaged in midstream logistics and marketing• Leading wholesale distributor of petroleum products• One of the largest independent owners, suppliers and operators of gasoline stations and
convenience stores in the Northeast• One of the largest terminal networks of petroleum products and renewable fuels in the Northeast
Retail Locations Northeast Terminal Locations*
*As of 12/31/2017
Global by the Numbers
24 Petroleum Bulk Product Terminals*
10.1 Million Barrels of Storage Capacity*
~300K Barrels of Product Sold Daily
~1,500 Gas Stations Owned, Leased or Supplied
260 Company-operated Convenience Stores
* As of 12/31/2017
6
7
Global’s History and EvolutionCompany Origins –
Distillates WholesalerInvestments in
Transportation Fuels Acquisitions of Retail Gasoline OperationsExpansion of Crude, Ethanol
& Propane Distribution• 2007: Acquired 5 terminals
from ExxonMobil – Provided transportation fuel
distribution capability• 2010: Acquired 3 additional
terminals in Newburgh, NY• 2015: Acquired Revere
Terminal from GPC
• 2010: Acquired190 gas stations and supply rights from XOM• 2012: Acquired Alliance Energy LLC; added 542 gas stations• 2012: Entered into supply and service agreement with Getty
Realty for more than 200 stations and long-term lease for 90 of those stations
• 2015: Acquired Warren Equities, 148 convenience stores, 33 commission agent locations and ~ 330 dealers
• 2015: Acquired Capitol Petroleum Group, 97 Mobil & Exxon branded stations and 7 dealer supply contracts. Expanded geography into Maryland/ Washington D.C.
• 2016: Acquired through long-term lease 22 gas stations in Western Mass
• 2017: Acquired Honey Farms, Inc., 11 company-operated retail sites with fuel and convenience stores and 22 stand-alone c-stores
• 2018: Acquired retail gas and c-store assets from Cheshire Oil and Champlain Oil (including 47 convenience stores, 24 fuel sites and ~65 dealer supply contracts)
• 2011: Began transporting crude by rail from mid-con to Albany terminal
• 2012: Expanded Albany terminal’s rail offloading capacity for crude and ethanol to 160,000 bbls/day
• 2013: Signed long-term crude transportation and logistics contract with Phillips 66
• 2013: Acquired majority interest in Basin Transload LLC, Oregon crude oil and ethanol transloading and ethanol manufacturing facility
• 2013: Opened propane storage and distribution facility in Albany
• 1933: Founded as a retail heating oil service company
• 1988: Partnered with Repsol/YPF• 2003: Acquired company back• 2005: : Completed initial public
offering on the NYSE as an MLP– Operated largely as a distillates
wholesaler until 2007
Key Acquisitions and Investments
Acquired 3 terminals from
ExxonMobil
Acquired 2 terminals
from ExxonMobil
Organic terminal
projects in Albany, NY
Oyster Bay, NY Philadelphia
Albany ethanol expansion project with CP
Acquired Mobil
stations
Contracted to supply 150M
gallons to Mobil distributors
AcquiredAllianceEnergy
Getty Realty Agreement
Acquired Basin Transload
Global Albany rail expansion
Acquired CPBR
Facility
Acquired Boston Harbor Terminal
Acquired NY/DC retail
portfolio from Capitol
Petroleum
Added 22 leased retail
sites in Western, Mass.
Acquired Honey Farms, Inc.
Completed Port of AcquiredProvidence terminal Warex
project terminals
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$1.9 Billion in Acquisitions and Investments
Acquired Warren Equities
8
Acquired retail gas and c-store assets from Champlain Oil
Co.
Acquired retail gas and c-store assets from Cheshire Oil
Co.
99
Transformation of Product Margin
Wholesale Crude23%
FYE 2010$182.3M
Wholesale Distillates & Residual 50%
Wholesale Gasoline 30%
Commercial 8%
Gasoline Distribution
8%
C-Store & Third-party Rent
5%
Wholesale 80% GDSO 13%
FYE 2017$671.6M
Wholesale 22%GDSO 75% Commercial 3%
Gasoline Distribution
49%
C-Store & Third-party Rent
26%
Wholesale Distillates, Residual & Crude
10%
Wholesale Gasoline 12%
Commercial3%
Commercial8%
1010
Global’s DNA and Strategy
Integrated MarketingWholesale Distribution C-Store Operations
Origin and Transportation Delivery and Storage
10
Retail
Sourcing and Logistics
Vertical Integration We operate a uniquely integrated refined products distribution system through our terminal network,
wholesale market presence and large portfolio of retail gasoline stations This integrated model drives product margin along each step of the value chain
Creating Value Through Growth Initiatives and Optimization
Recent Growth Initiatives
• Acquired retail fuel and c-store assets of Cheshire Oil Companyo 10 Company-operated sites with fuel and T-Bird branded c-storeso Transaction closed in Q3 2018 and expected to be accretive in first full year of operations
Asset Optimization
• Ongoing divestiture of non-strategic retail siteso Supply agreements retained at majority of sold sites
11
• Acquired retail fuel and c-store assets of Champlain Oil Company o 37 Company-operated sites with fuel and Jiffy Mart-branded c-stores o 24 owned or leased fuel sites; fuel supply agreements for ~65 gas stations o Transaction closed in Q3 2018 and expected to be accretive in first full year of operations
Business Overview
• Bulk purchase, movement, storage and sale of:
– Gasoline and gasoline blendstocks– Other oils and related products– Crude oil
• 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– Bunker fuel
• Customers– Government agencies– States, towns, municipalities– Large commercial clients– Shipping companies
Gasoline Distribution &Station Operations
12
• Retail gasoline sales– Branded and unbranded
• Rental income from:– Dealers– Commissioned 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
* Does not include Jiffy Mart- and T-Bird-branded convenience stores added as part of Cheshire and Champlain acquisitions in Q3 2018
Key Role in Northeast Energy Infrastructure
Gasoline*
Diesel fuel
Heating oil
13
TTM as of 3/31/2018*Total gasoline volumesold
730K
19KAutomobile tanks filled/day
Diesel trucks filled/day
37KHomes heated/day in winter
Gasoline Distribution & Station Operations Segment (GDSO)
One of the Largest Operators of Gasoline Stations andConvenience Stores in the Northeast
• Large gasoline station and C-store portfolio– Supply ~1,500 locations in 11 states
• Own or control ~760 sites; approximately40% 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
• Honey Farms acquisition – October 2017– Strong geographic fit– Expands footprint in Worcester, Mass. region– Benefits from economies of scale
Site Type Total
Company Operated 260
Commissioned Agents 266
Dealer Leased 228
TOTAL 754
Dealer Contracts 691
TOTAL 1,445
15
GDSO Segment Competitive Strengths
• Annuity business: Rental income from Dealer Leased and Commissioned Agents
• Vertical integration: Integration between supply, terminaling and wholesale businesses and gas station sites
• Scale: ~1,500 sites with volume of 1.6billion gallons*
Strategic Advantages
• 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
Portfolio Percentage of Sites by State**
NY 25%
MA 28%CT
22%
PA 6%
RI 5%
MD 5%
NH 5%
ME 3% NJ < 1% VA
Q4 2017• Expanded presence in Worcester,
Mass. region• 11 company-operated sites with
fuel and convenience stores• 22 company-operated stand-alone
convenience stories• Expected to be accretive in the
first full year of operations
Track Record of Acquisitive Growth
Q2 2016• Expanded presence in Western
Massachusetts through long-term leases for gas stations and c-stores
• Shell and Mobil fuel brands
Q2 2015• Added Mobil- and Exxon-branded
owned and leased retail gas stations, as well as dealer supply contracts in NYC and MD
• Expanded Global’s presence intwo attractive markets
Capitol Petroleum Group Expanded Portfolio in Western Mass Honey Farms, Inc.
AAAAAAAnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaapppppppppppppppppppppppppppppppppppppppppppppppppooooooooooooooooooooooooooooooooooooooooooooooooolllllllllllllllllllllllllllllllllllllllllliiiiiiillllllliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiisssssssssssssssssssssssssssssssssssssssssssssssss
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBeeeeeetttttthhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhheeeeesssssdddddddddddddddddddddddddddddddddddddddddddddddddaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBooooooooooooooooooooooooooooooooooooooooooooooooowiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiieeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
GGaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiittttttttttttttttttttttttttttttttttttttttttttttttthhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhheeeeeeerrrrrrrsssssssssssssssssssssssssssssssssssssssssssssssssbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrggggggggggggggggggggggggggggggggggggggggggggggggg
OOxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxooooooooooooooooooooooooooooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnHHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll------------------------------------------G-------GGllllllllllllllllllllllllllllllllllllllllllaaaaaaalllllllaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaassssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssmaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnooooooooooooooooooooooooooooooooooooooooooooooooorrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
RRRRRRRoooooooccccccckkkkkkkvvvvvvviiiiiilillllllllllllleeeeeeeRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRoooooooooooooooooooooooooooooooooooooooooocccccccccccccccccccccccccccccccccccccccccckkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvviiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiilllllliiiiiilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllleeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeAAAAAAAssssssssssssssssssssssssssssssssssssssssssssssssspppppppppppppppppppppppppppppppppppppppppppppppppeeeeeennnnnn HHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll
SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiillllllliiiiiiillllllllllllllllllllllllllllllllllllllllllvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvveeeeeerrrrrrSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSppppppppppppppppppppppppppppppppppppppppppppppppprrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrriiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinnnnnnniiiiiiinnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnggggggggggggggggggggggggggggggggggggggggggggggggg
ChiilluumuuuuuuuuuulluulllllllllllllllllllllliilliiiiiiiiiihhhhhhhhhhhhhCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCChhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhiiiiiiiiiiiiiiiiiiiiiiiiiiiiiillllliiiiilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllluuuuullllluuuuuuuuuuuuuuuuuuuuuuuuuuuuuumMcccccccccccccccccccccccccccccccccccccccccccccccccLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLeeeeeeeeeaaaaaaaaannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn
nnnnnnnnnnnnnn
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEElllllllllllllllllllllllllllllllllllllllllliiiiiiillllllliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiizzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaabbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeettttttttttttttttttttttttttttttttttttttttttttttttthhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaayyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyooooooooooooooooooooooooooooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFooooooooooooooooooooooooooooooooooooooooooooooooorrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrtttttttttttttttttttttttttttttttttttttttttttttttttLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJeeeeeerrrrrrssssssssssssssssssssssssssssssssssssssssssssssssseeeeeeyyyyyyCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitttttttttttttttttttttttttttttttttttttttttttttttttyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinnnnnnniiiiiiinnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnndddddddddddddddddddddddddddddddddddddddddddddddddeeeeeeeeennnnnnnnn
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIrrrrrrrIIIIIIIrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvviiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnngggggggggggggggggggggggggggggggggggggggggggggggggtttttttttttttttttttttttttttttttttttttttttttttttttooooooooooooooooooooooooooooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnNNeeeeeeeewwaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaarrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkUUnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiioooooooooooooooooooooooooooooooooooooooooo
ooooooonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn
Westttttttttttttt NewYYorkkkkkkkkkkkkkkrrrrrrrrrrrrroooooooooooooYYYYYYYYYYYYWeeeeeeeessssssssttttttttttttttttttttttttttttttttttttttttttttttttt OOrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrraaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnngggggggggggggggggggggggggggggggggggggggggggggggggeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBeeeeeeelllllllllllllllllllllllllllllllllllllllllllllllllllllllleeeeeevvvvvviiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiillllllliiiiiiilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllleeeeeeellllllleeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaassssssssssssssssssssssssssssssssssssssssssssssssstttttttttttttttttttttttttttttttttttttttttttttttttOOrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrraaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnngggggggggggggggggggggggggggggggggggggggggggggggggeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeeeeepppppppppppppppppppppppppppppppppppppppppppppppppooooooooooooooooooooooooooooooooooooooooooooooooorrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrttttttttttttttttttttttttttttttttttttttttttttttttt
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaasssssssssssssssssssssssssssssssssssssssssssssssssttttttttttttttttttttttttttttttttttttttttttttttttt
Meeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaadddddddddddddddddddddddddddddddddddddddddddddddddooooooooooooooooooooooooooooooooooooooooooooooooow HHeeeeeeemmpppppppppppppppppppppppppppppppppppppppppppppppppsssssssssssssssssssssssssssssssssssssssssssssssssttttttttttttttttttttttttttttttttttttttttttttttttteeeeeeaaaaaaddddddddddddddddddddddddddddddddddddddddddddddddd
HHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiccccccccccccccccccccccccccccccccccccccccccccccccckkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkksssssssssssssssssssssssssssssssssssssssssssssssssvvvvvvvvvvvvvvvvvvvvv
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLooooooooooooooooooooooooooooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnngggggggggggggggggggggggggggggggggggggggggggggggggBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBeeeeeeeaaaaaaaccccccccccccccccccccccccccccccccccccccccccccccccchhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh
OOccccccccccccccccccccccccccccccccccccccccccccccccceeeeeeeeaaaaaaaannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnsssssssssssssssssssssssssssssssssssssssssssssssssiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiidddddddddddddddddddddddddddddddddddddddddddddddddeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaalllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllellllllleeeeeyyyyyySSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSStttttttttttttttttttttttttttttttttttttttttttttttttrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeaaaaaaaam
678NEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEWYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYORRKKKKKKK
8CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC0lllllllllllllllllllllllllllllllllllllllllliiiiiiillllllliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiifffffffffffffffffffffffffffffffffffffffffftttttttfffffffttttttttttttttttttttttttttttttttttttttttttooooooooooooooooooooooooooooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn 95BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBllllllllllllllllllllllllllllllllllllllllllooooooolllllllooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooomffffffffffffffffffffffffffffffffffffffffffiiiiiiifffffffiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiieeeeeeeeelllllllllddddddddddddddddddddddddddddddddddddddddddddddddd 2WW7Weesssttttttttttttttttttttttttttttttttttte8NNeewYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYooooooooooooooooooooooooooooooooooorrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk
95478
278
AAAAAAAnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnndddddddddddddddddddddddddddddddddddddddddddddddddaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaalllllllllllllllllllllllllllllllllllllllllleeeeeeellllllleeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeAAAAAAAllllllllllllllllllllllllllllllllllllllllllllllllleeeeeeeexxxxxxxxaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnndddddddddddddddddddddddddddddddddddddddddddddddddrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrriiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiaaaaaaaiiiiiiiaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee398
Whhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhheeeeeeeeaaaaaaaatttttttttttttttttttttttttttttttttttttttttttttttttooooooooooooooooooooooooooooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn-------------------------------------------------GGlllllllllllllllllllllllllllllllllllllllllleellllllleeeeeeennnnnnnnn6mooooooooooooooooooooooooooooooooooooooooooooooooo6nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnttttttttttttttttttttttttttttttttttttttttttttttttt
97WAASSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINGTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTON,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, D..........................................C.......CC.................................................
AAAAAAArrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrlllllllllllllllllllllllllllllllllllllllllliiiiiiillllllliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnngggggggggggggggggggggggggggggggggggggggggggggggggtttttttttttttttttttttttttttttttttttttttttttttttttooooooooooooooooooooooooooooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn
498SSuitlaand-SilvverrrrrrreeeeeevvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvllllllllllllllllllllllllllllllllllllllllliiiiiiillllllliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS------------------------------------------------ddddddddddddddddddddddddddddddddddddddddddddddddnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaalllllllllllllllllllllllllllllllllllllllllllllllltttttttttttttttttttttttttttttttttttttttttiiiiiiitttttttiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS HilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiH
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPoooooooooooooooooooooooooooooooooooooooooooooooootttttttttttttttttttttttttttttttttttttttttttttttttooooooooooooooooooooooooooooooooooooooooooooooooomaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaccccccccccccccccccccccccccccccccccccccccccccccccc
270
Warren Equities
Q1 2015• Strengthened footprint across 10
states in the Northeast with the majority of its stores primarily concentrated in MA, CT and NY
• Expanded scale while providing significant operational synergies and strategic options
17
18
Q318 Acquisitions – Champlain Oil and Cheshire Oil
• Acquired 126 stations – 37 company-operated gas stations and Jiffy
Mart-branded convenience stores in Vermont and New Hampshire
– ~24 owned or leased fuel sites, including lessee dealer and commission agent locations
– Fuel supply agreements for 65 gas stations, primarily in Vt. And N.H.
– Purchase price $134 million, excluding inventory (subject to post-closing adjustments)
– Expected to be accretive in first full year of operations
Champlain Oil Cheshire Oil
• Acquired 10 company-operated gas stations and T-Bird-branded convenience stores
– Nine stores in N.H.; one in Brattleboro, Vt. – Expected to be accretive in first full year of
operations
GDSO Segment - Growth Through Organic and M&A Initiatives
Organic Projects:• Raze and rebuilds• New-to-industry sites
Real Estate Strategy:• 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
19
Wholesale Segment
21
Global has 9.2 million bbls of terminal capacity in the Northeast (as of 12/31/2017)
Wholesale Terminals – Northeast
1 Based on terminal capacity (bbls in 000s)Source: OPIS/Stalsby Petroleum Terminal Encyclopedia, 2015 and Company data
Location
Estimated market share1
Est. market capacity GLP capacity GLP % of totalNewburgh, 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%
Key to Terminal Type
Distillate
Ethanol
Gasoline/Distillate/Ethanol
Residual/Distillate
Residual/Distillate/Biofuel
Distillate/Biofuel
Gasoline/Distillate/Ethanol/Crude
Propane/Butane
Crude
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
Inwood, NY: 322K bbls
Glenwood Landing, NY: 98K bbls
Bridgeport, CT: 110K bbls
Macungie, PA: 170K bbls
Staten Island, NY: 287K bbls
Philadelphia, PA: 2 19K bbls
Bayonne, NJ: 371K bbls
Burlington, VT: 419K bbls
Wethersfield, CT: 183K bbls
Springfield, MA: 54K bbls
Albany, NY: 24K bbls
Location Est. market capacity GLP capacity GLP % of total
Ethanol Transloading in Oregon
• 200,000 bbls of storage capacity• Dock capable of handling Panamax-
class vessels• Expansion capabilities
22
Commercial Segment
Commercial Segment Overview
• Delivered fuels business – commercial and industrial customers 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
24
Financial Summary
26
Q1 2018 Financial Performance
*Please refer to Appendix for reconciliation of non-GAAP items
$106.1
$52.1
$4.2
$113.7
$47.2
$5.2
GDSO Wholesale Commercial Q1’17 Q1’18 Q1’17 Q1’18 Q1’17 Q1’18
Q1 Product Margin by Segment($ in millions)
Commercial 3%
Wholesale 28%
GDSO 69% Wholesale Distillates, Residual and Other 10%
Wholesale Gasoline 15%
Gasoline Distribution
43%
C-Store & Third-party Rent
26%
$166.1M
Wholesale Crude 3%
Q1 2018 Product Margin($ in millions) Q1 2018 Q1 2017Product margin* $166.1 $162.4Gross profit $144.3 $140.0Net income attributable to GLP $59.0 $22.9EBITDA* $105.7 $71.9Adjusted EBITDA* $107.6 $60.1Maintenance capex $6.1 $5.3DCF* $79.7 $44.2
Q1 2018 vs. Q1 2017 Drivers
Favorable variance Unfavorable variance
One-time non-cash gain of $52.6 million as a result of the extinguishment of a contingent liability related to a Volumetric Ethanol Excise Tax Credit
Less favorable market conditions in distillates
Honey Farms acquisition
Higher fuel volume and fuel margin
More favorable market conditions in gasoline blendstocks, primarily ethanol
27
FY 2017 Financial Performance
*Please refer to Appendix for reconciliation of non-GAAP items
$473.1
$144.9
$24.0
$501.5
$152.2
$17.9
GDSO Wholesale Commercial FY16 FY17 FY16 FY17 FY16 FY17
FY 2017 Product Margin by Segment($ in millions)
Commercial 3%
Wholesale 22%
GDSO 75%
Wholesale Distillates
& Residual 9%
Wholesale Gasoline 12%
Gasoline Distribution
49%
C-Store & Third-party Rent
26%
$671.6M
Wholesale Crude 1%FY 2017 Product Margin($ in millions) FY 2016 FY 2017
Product margin* $642.1 $671.6Gross profit $546.5 $583.1Net (loss) income attributable to GLP $(199.4) $58.8EBITDA* $(4.9) $225.0Adjusted EBITDA* $129.8 $224.2Maintenance capex $33.0 $34.7DCF* $(121.4) $108.3DCF excluding non-cash charges* $93.9 $121.6
Favorable variance Unfavorable variance
FY 2017 vs. FY 2016 Drivers Non-cash tax benefit of $22.2M related to the remeasurement of certain tax assets and liabilities under the Tax Cuts and Jobs Act Higher fuel margins Revenue related to the absence of logistics nominations from one particular crude oil contract customer Lower railcar lease expense Honey Farms acquisition
Loss on trustee taxes of $16.2M related to an audit of the Partnership’s fuel and sales tax returns for the periods from December 2008 through August 2013 Less favorable market conditions in other oils and related products Sale of Drake retail gas sites
Sale of natural gas business
28
Volume and Margin
• Consistency– Driving cars & trucks– Heating buildings and homes– Term contracts– Rental income and C-Store sales
• Variability– Market and economic conditions– Weather– Seasonality
* Retail excludes C-store margin and rent
Product Margin (cents per gallon)Station Operations Margin ($M)
4.6 4.0 3.74.7 5.0 4.5
6.1 6.6
9.5
12.3 12.514.1 13.9
12.814.6 14.3
18.4 18.3 18.220.6 20.7
0
5
10
15
20
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 TTM3/31/18
Total CPG Retail CPG*
$0.0
$50.0
$100.0
$150.0
$200.0
2013 2014 2015 2016 2017 TTM3/31/18
Rent C-Store & Sundry
$78.8$93.9
$178.5 $183.7 $175.0 $179.6
29
Balance Sheet at March 31, 2018• Tangible and liquid with receivables and inventory comprising 34% of total assets
• 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 $1.0B of conservatively valued fixed assets (strategically located, non-replicable terminals and gas stations)
• $352M (29%) of total debt at 3/31 related to inventory financing
- Borrowed under working capital facility
• $858M (71%) of total debt at 3/31 related to:
- Terminal infrastructure- Acquisitions and capital expenditures
• Issued $375M 6.25% senior notes due 2022 and $300M 7.00% senior notes due 2023
• Combined Total Leverage Ratio approximately 4.1x(1)
AssetsCurrent assets:
Cash and cash equivalents $ 11,693 Accounts receivable, net 417,657 Accounts receivable - affiliates 3,691 Inventories 392,950 Brokerage margin deposits 14,291 Derivative assets 9,823 Prepaid expenses and other current assets 86,075 Total current assets 936,180
Property and equipment, net 1,019,513 Intangible assets, net 53,968 Goodwill 312,258 Other assets 33,265
Total assets $ 2,355,184
Liabilities and partners' equityCurrent liabilities:
Accounts payable $ 271,798 Working capital revolving credit facility - current portion 251,700 Environmental liabilities - current portion 5,006 Trustee taxes payable 37,960 Accrued expenses and other current liabilities 83,678 Derivative liabilities 12,498 Total current liabilities 662,640
Working capital revolving credit facility - less current portion 100,000 Revolving credit facility 196,000 Senior notes 662,444 Environmental liabilities - less current portion 51,514 Financing obligations 150,283 Deferred tax liabilities 38,948 Other long-term liabilities 54,961
Total liabilities 1,916,790
Partners' equityGlobal Partners LP equity 435,396 Noncontrolling interest 2,998
Total partners' equity 438,394
Total liabilities and partners' equity $ 2,355,184
(1)Combined Total Leverage Ratio (Funded Debt/EBITDA) as defined under the Partnership’s CreditAgreement.
(In thousands)
IS
GLOBAL PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONSDATEDATEDATE
(In thousands, except per unit data)2017 done
(Unaudited)
Three Months EndedThree Months EndedSix Months EndedThree Months EndedNine Months EndedThree Months EndedTwelve Months Ended
March 31,June 30,June 30,September 30,September 30,December 31,December 31,
20182017201820172018201720182017201820172018201720182017
Sales$2,802,891$2,270,784$(2,802,891)$2,089,530$-$4,360,314$-$2,159,746$-$6,520,060$-$2,400,492$-$8,920,552
Cost of sales2,658,5612,130,757(2,658,561)1,954,168-4,084,925-2,009,652-6,094,577-2,242,923-8,337,500
Gross profit144,330140,027(144,330)135,362-275,389-150,094-425,483-157,569-583,052
Costs and operating expenses:
Selling, general and administrative expenses39,36636,787(39,366)34,679-71,466-40,134-111,600-43,433-155,033
Operating expenses74,04967,213(74,049)71,169-138,382-70,338-208,720-74,930-283,650
Gain on trustee taxes(52,627)-52,627--------16,194-16,194
Lease exit and termination expenses--------------
Amortization expense2,4682,261(2,468)2,260-4,521-2,260-6,781-2,425-9,206
Net loss (gain) on sale and disposition of assets1,867(11,862)(1,867)2,381-(9,481)-2,190-(7,291)-5,667-(1,624)
Goodwill and long-lived asset impairment-------809-809---809
Total costs and operating expenses65,12394,399(65,123)110,489-204,888-115,731-320,619-142,649-463,268
Operating income79,20745,628(79,207)24,873-70,501-34,363-104,864-14,920-119,784
Interest expense(21,445)(23,287)21,445(21,923)-(45,210)-(20,626)-(65,836)-(20,394)-(86,230)
Income before income tax benefit57,76222,341(57,762)2,950-25,291-13,737-39,028-(5,474)-33,554
Income tax benefit913164(913)(959)-(795)-723-(72)-23,635-23,563
Net income 58,67522,505(58,675)1,991-24,496-14,460-38,956-18,161-57,117
Net loss attributable to noncontrolling interest367441(367)383-824-418-1,242-393-1,635
Net income attributable to Global Partners LP59,04222,946(59,042)2,374-25,320-14,878-40,198-18,554-58,752
Less: General partner's interest in net income, including
incentive distribution rights396154(2)(396)16-170-100-270-124-394
Limited partners' interest in net income $58,646$22,792$(58,646)$2,358$-$25,150$-$14,778$-$39,928$-$18,430$-$58,358
Basic net income per limited partner unit (1)$1.74$0.68$ERROR:#DIV/0!$0.07$ERROR:#DIV/0!$0.75$ERROR:#DIV/0!$0.44$ERROR:#DIV/0!$1.19$ERROR:#DIV/0!$0.55$ERROR:#DIV/0!$1.74
Diluted net income per limited partner unit (1)$1.73$0.68$ERROR:#DIV/0!$0.07$ERROR:#DIV/0!$0.75$ERROR:#DIV/0!$0.44$ERROR:#DIV/0!$1.18$ERROR:#DIV/0!$0.55$ERROR:#DIV/0!$1.74
Basic weighted average limited partner units outstanding33,65233,554-33,554-33,554-33,644-33,570-33,645-33,589
Diluted weighted average limited partner units outstanding 33,80233,610-33,652-33,619-33,945-33,839-33,751-33,634
(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.
(1) On March 19, 2010, the general partner interest was reduced to 1.34% as a result of the public offering. This calculation includes the effect of the public offering and is based on a weighted average of 1.66% for the three months ended March 31, 2010. For the three months ended March 31, 2009, the general partner interest was 1.73%.
&8&Z&F&A
&8&Z&F-&A
BS
GLOBAL PARTNERS LP
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31,December 31,
20182017
Assets
Current assets:
Cash and cash equivalents$11,693$14,858
Accounts receivable, net417,657417,263
Accounts receivable - affiliates3,6913,773
Inventories392,950350,743
Brokerage margin deposits14,2919,681
Derivative assets9,8233,840
Prepaid expenses and other current assets86,07577,977deferred issuance cost reclass
Total current assets936,180878,135
Property and equipment, net1,019,5131,036,667
Intangible assets, net53,96856,545
Goodwill312,258312,401
Other assets33,26536,421deferred issuance cost reclass
Total assets$2,355,184$2,320,169
Liabilities and partners' equity
Current liabilities:
Accounts payable$271,798$313,412
Working capital revolving credit facility - current portion251,700126,700
Environmental liabilities - current portion5,0065,009
Trustee taxes payable37,960110,321
Accrued expenses and other current liabilities83,67899,507
Derivative liabilities12,49813,708
Total current liabilities662,640668,657
Working capital revolving credit facility - less current portion100,000100,000
Revolving credit facility196,000196,000
Senior notes662,444661,774deferred issuance cost reclass
Environmental liabilities - less current portion51,51452,968
Financing obligations150,283150,334
Deferred tax liabilities38,94840,105
Other long-term liabilities54,96156,013
Total liabilities1,916,7901,925,851
Partners' equity
Global Partners LP equity435,396390,953
Noncontrolling interest2,9983,365
Total partners' equity438,394394,318
Total liabilities and partners' equity$2,355,184$2,320,169
&8&Z&F&A
&8&Z&F-&A
Non-GAAP
GLOBAL PARTNERS LP
FINANCIAL RECONCILIATIONSdatedatedate
(In thousands)
(Unaudited)
Three Months EndedThree Months EndedSix Months EndedThree Months EndedNine Months EndedThree Months EndedTwelve Months Ended
March 31,June 30,June 30,September 30,September 30,December 31,December 31,
20182017201820172018201720182017201820172018201720182017
Reconciliation of gross profit to product margin
Wholesale segment:
Gasoline and gasoline blendstocks$25,387$15,385$(25,387)$18,608$-$33,993$-$30,422$-$64,415$-$17,709$-$82,124
Crude oil5,0736,892(5,073)4,761-11,653-(8,405)-3,248-4,031-7,279
Other oils and related products16,68729,873(16,687)7,828-37,701-14,589-52,290-10,509-62,799
Total47,14752,150(47,147)31,197-83,347-36,606-119,953-32,249-152,202
Gasoline Distribution and Station Operations segment:
Gasoline distribution 70,14567,155(70,145)79,283-146,438-84,170-230,608-95,928-326,536
Station operations43,53438,895(43,534)43,242-82,137-46,492-128,629-46,357-174,986
Total113,679106,050(113,679)122,525-228,575-130,662-359,237-142,285-501,522
Commercial segment5,2374,189(5,237)4,124-8,313-5,022-13,335-4,523-17,858
Combined product margin166,063162,389(166,063)157,846-320,235-172,290-492,525-179,057-671,582
Depreciation allocated to cost of sales(21,733)(22,362)21,733(22,484)-(44,846)-(22,196)-(67,042)-(21,488)-(88,530)
Gross profit$144,330$140,027$(144,330)$135,362$-$275,389$-$150,094$-$425,483$-$157,569$-$583,052
Reconciliation of net income to EBITDA and Adjusted EBITDA
Net income$58,675$22,505$(58,675)$1,991$-$24,496$-$14,460$-$38,956$-$18,161$-$57,117
Net loss attributable to noncontrolling interest367441(367)383-824-418-1,242-393-1,635
Net income attributable to Global Partners LP59,04222,946(59,042)2,374-25,320-14,878-40,198-18,554-58,752
Depreciation and amortization, excluding the impact of noncontrolling interest26,11925,851(26,119)26,036-51,887-25,998-77,885-25,716-103,601
Interest expense, excluding the impact of noncontrolling interest21,44523,287(21,445)21,923-45,210-20,626-65,836-20,394-86,230
Income tax benefit(913)(164)913959-795-(723)-72-(23,635)-(23,563)
EBITDA105,69371,920(105,693)51,292-123,212-60,779-183,991-41,029-225,020
Lease exit and termination expenses--------------
Net loss (gain) on sale and disposition of assets1,867(11,862)(1,867)2,381-(9,481)-2,190-(7,291)-5,667-(1,624)
Goodwill and long-lived asset impairment-------809-809---809
Goodwill and long-lived asset impairment attributable to noncontrolling interest--------------
Adjusted EBITDA (1)$107,560$60,058$(107,560)$53,673$-$113,731$-$63,778$-$177,509$-$46,696$-$224,205
Reconciliation of net cash (used in) provided by operating activities to EBITDA and Adjusted EBITDA
Net cash (used in) provided by operating activities$(103,714)$121,893$103,714$88,034$-$209,927$-$152,514$-$362,441$-$(13,999)$-$348,442
Net changes in operating assets and liabilities and certain non-cash items188,871(73,024)(188,871)(59,494)-(132,518)-(111,544)-(244,062)-58,389-(185,673)
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest4(72)(4)(130)-(202)-(94)-(296)-(120)-(416)
Interest expense, excluding the impact of noncontrolling interest21,44523,287(21,445)21,923-45,210-20,626-65,836-20,394-86,230
Income tax benefit(913)(164)913959-795-(723)-72-(23,635)-(23,563)
EBITDA105,69371,920(105,693)51,292-123,212-60,779-183,991-41,029-225,020
Lease exit and termination expenses--------------
Net loss (gain) on sale and disposition of assets1,867(11,862)(1,867)2,381-(9,481)-2,190-(7,291)-5,667-(1,624)
Goodwill and long-lived asset impairment-------809-809---809
Goodwill and long-lived asset impairment attributable to noncontrolling interest--------------
Adjusted EBITDA (1)$107,560$60,058$(107,560)$53,673$-$113,731$-$63,778$-$177,509$-$46,696$-$224,205
Reconciliation of net income to distributable cash flow
Net income$58,675$22,505$(58,675)$1,991$-$24,496$-$14,460$-$38,956$-$18,161$-$57,117
Net loss attributable to noncontrolling interest367441(367)383-824-418-1,242-393-1,635
Net income attributable to Global Partners LP59,04222,946(59,042)2,374-25,320-14,878-40,198-18,554-58,752
Depreciation and amortization, excluding the impact of noncontrolling interest26,11925,851(26,119)26,036-51,887-25,998-77,885-25,716-103,601
Amortization of deferred financing fees and senior notes discount1,7131,891(1,713)1,780-3,671-1,703-5,374-1,715-7,089
Amortization of routine bank refinancing fees(1,022)(1,167)1,022(1,063)-(2,230)-(1,019)-(3,249)-(1,028)-(4,277)
Non-cash tax reform benefit-----------(22,183)-(22,183)
Maintenance capital expenditures, excluding the impact of noncontrolling interest(6,082)(5,347)6,082(7,338)-(12,685)-(9,258)-(21,943)-(12,775)-(34,718)
Distributable cash flow (2)(3)$79,770$44,174$(79,770)$21,789$-$65,963$-$32,302$-$98,265$-$9,999$-$108,264
Reconciliation of net cash (used in) provided by operating activities to distributable cash flow
Net cash (used in) provided by operating activities$(103,714)$121,893$103,714$88,034$-$209,927$-$152,514$-$362,441$-$(13,999)$-$348,442
Net changes in operating assets and liabilities and certain non-cash items188,871(73,024)(188,871)(59,494)-(132,518)-(111,544)-(244,062)-58,389-(185,673)
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest4(72)(4)(130)-(202)-(94)-(296)-(120)-(416)
Amortization of deferred financing fees and senior notes discount1,7131,891(1,713)1,780-3,671-1,703-5,374-1,715-7,089
Amortization of routine bank refinancing fees(1,022)(1,167)1,022(1,063)-(2,230)-(1,019)-(3,249)-(1,028)-(4,277)
Non-cash tax reform benefit-----------(22,183)-(22,183)
Maintenance capital expenditures, excluding the impact of noncontrolling interest(6,082)(5,347)6,082(7,338)-(12,685)-(9,258)-(21,943)-(12,775)-(34,718)
Distributable cash flow (2)(3)$79,770$44,174$(79,770)$21,789$-$65,963$-$32,302$-$98,265$-$9,999$-$108,264
PROOF EBITDA--------
PROOF Adjusted EBITDA--------------
PROOF DCF--------------
GP reported144,330140,027-135,362-275,389-150,094-425,483-157,569-583,052
Diff--144,330-----------
Ebitda above105,69371,920(105,693)51,292-123,212-60,779-183,991-41,029-225,020
Ebitda (internal reports)105,69371,920-51,292-123,212-60,779-183,991-41,029-225,020
Diff--105,693-----------
DCF above79,77044,174(79,770)21,789-65,963-32,302-98,265-9,999-108,264
DCF (internal reports)79,77044,174-21,789-65,963-32,302-98,265-9,999-108,264
Diff--79,770-----------
(1)Adjusted EBITDA for the three months ended March 31, 2018 includes a one-time gain of approximately $52.6 million as a result of the extinguishment of a contingent liability related to a Volumetric Ethanol Excise Tax Credit.
(2)As defined by the Partnership's partnership agreement, distributable cash flow is not adjusted for certain non-cash items, such as net losses on the sale and disposition of assets and goodwill and long-lived asset impairment charges.
(3)Distributable cash flow includes a net loss on sale and disposition of assets of $1.9 million and $2.3 million for the three months ended March 31, 2018 and 2017, respectively. Excluding the loss on sale and disposition of assets, distributable cash flow would have been $81.6 million and $46.5 million for the three months ended March 31, 2018 and 2017, respectively. For the three months ended March 31, 2018, distributable cash flow also includes a one-time gain of approximately $52.6 million as a result of the extinguishment of a contingent liability related to a Volumetric Ethanol Excise Tax Credit. For the three months ended March 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.
DCF79,77044,174(79,770)21,789-65,963-32,302-98,265-9,999-108,264
LOSS ON SALE OF ASSETS (EXCLUDES THE GAIN ON NAT GAS OF $14,172 FOR Q-1 AND YEAR END 2017)1,8672,310(1,867)2,381-4,691-2,190-6,881-5,667-12,548
GOODWILL AND LONG-LIVED ASSET IMPAIRMENT-------809-809---809
Q-1 2018 GAIN ON TRUSTEE TAXES $52,627(52,627)-------------
ADJUSTED DCF29,01046,484(81,637)24,170-70,654-35,301-105,955-15,666-121,621
Loss and impairment attributable to GLP(50,760)2,310(1,867)2,381-4,691-2,999-7,690-5,667-13,357
-809-809---809
ADJUSTED EBITDA107,56060,058
GAIN ON TRUSTEE TAXES(52,627)-
WHAT ADJUSTED EBITDA WOULD HAVE BEEN54,93360,058
&8&Z&F-&A
Appendix
Financial Reconciliations: Product Margin
31
(In thousands)(Unaudited)
Reconciliation of gross profit to product marginWholesale segment:
Gasoline and gasoline blendstocks (1) $ 43,147 $ 71,713 $ 66,031 $ 83,742 $ 82,124 $ 15,385 $ 25,387 $ 92,126 Crude oil 92,807 141,965 74,182 (13,098) 7,279 6,892 5,073 5,460 Other oils and related products 66,916 79,376 67,709 74,271 62,799 29,873 16,687 49,613
Total (1) 202,870 293,054 207,922 144,915 152,202 52,150 47,147 147,199
Gasoline Distribution and Station Operations segment:Gasoline distribution 150,147 189,439 276,848 289,420 326,536 67,155 70,145 329,526 Station operations 78,833 93,939 178,487 183,708 174,986 38,895 43,534 179,625
Total 228,980 283,378 455,335 473,128 501,522 106,050 113,679 509,151
Commercial segment 28,359 29,716 29,201 24,018 17,858 4,189 5,237 18,906
Combined product margin (1) 460,209 606,148 692,458 642,061 671,582 162,389 166,063 675,256 Depreciation allocated to cost of sales (55,653) (61,361) (94,789) (95,571) (88,530) (22,362) (21,733) (87,901) Gross profit (1) $ 404,556 $ 544,787 $ 597,669 $ 546,490 $ 583,052 $ 140,027 $ 144,330 $ 587,355
(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.
TrailingTwelve
Months EndedMarch 31,
2017 2018 2018
Three Months EndedMarch 31,Year Ended December 31,
20152013 2014 20172016
MARGIN
GLOBAL PARTNERS LP
FINANCIAL RECONCILIATIONS - PRODUCT MARGIN
(In thousands)
(Unaudited)10/30/17
Trailing
Twelve
Three Months EndedNine Months EndedMonths Ended
Year Ended December 31,March 31,September 30, March 31,
2013201420152016201720172018201620172018
Reconciliation of gross profit to product margin
Wholesale segment:
Gasoline and gasoline blendstocks (1)$43,147$71,713$66,031$83,742$82,124$15,385$25,387$64,503$64,415$92,126
Crude oil92,807141,96574,182(13,098)7,2796,8925,073(28,839)3,2485,460
Other oils and related products66,91679,37667,70974,27162,79929,87316,68752,48852,29049,613
Total (1)202,870293,054207,922144,915152,20252,15047,14788,152119,953147,199
Gasoline Distribution and Station Operations segment:
Gasoline distribution150,147189,439276,848289,420326,53667,15570,145220,497230,608329,526
Station operations 78,83393,939178,487183,708174,98638,89543,534140,921128,629179,625
Total228,980283,378455,335473,128501,522106,050113,679361,418359,237509,151
Commercial segment28,35929,71629,20124,01817,8584,1895,23716,56613,33518,906
Combined product margin (1)460,209606,148692,458642,061671,582162,389166,063466,136492,525675,256
Depreciation allocated to cost of sales(55,653)(61,361)(94,789)(95,571)(88,530)(22,362)(21,733)(74,124)(67,042)(87,901)
Gross profit (1)$404,556$544,787$597,669$546,490$583,052$140,027$144,330$392,012$425,483$587,355
REPORTED405,829542,605597,669546,490583,052140,027144,330392,012425,483587,355
DIFFERENCE1,273(2,182)--------
(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.
&8&Z&F-&A
EBITDA
GLOBAL PARTNERS LP
FINANCIAL RECONCILIATIONS - EBITDA
(In thousands)
(Unaudited)10/30/17
updated but not included inTrailing
the presentationTwelve
Three Months EndedNine Months EndedMonths Ended
Year Ended December 31,March 31,September 30,September 30,
2013201420152016 (2)201720172018 (3)201620172017
Reconciliation of net income (loss) to EBITDA
Net income (loss) (1)$41,053$116,980$43,264$(238,623)$57,117$22,505$58,675$(172,961)$38,956$(26,706)
Net loss (income) attributable to noncontrolling interest1,562(2,271)29939,2111,63544136739,0761,2421,377
Net income (loss) attributable to Global Partners LP (1)42,615114,70943,563(199,412)58,75222,94659,042(133,885)40,198(25,329)
Depreciation and amortization, excluding the impact of noncontrolling interest70,42378,888110,670108,189103,60125,85126,11983,07377,885103,001
Interest expense, excluding the impact of noncontrolling interest43,53747,71973,32986,31986,23023,28721,44565,19265,83686,963
Income tax expense (benefit)819963(1,873)53(23,563)(164)(913)1,66872(1,543)
EBITDA (1)157,394242,279225,689(4,851)225,02071,920105,693$16,048$183,991163,092
Net (gain) loss on sale and disposition of assets(1,273)2,1822,09720,495(1,624)(11,862)1,86713,966(7,291)(762)
Goodwill and long-lived asset impairment---149,972809--149,972809809
Goodwill and long-lived asset impairment attributable to noncontrolling interest---(35,834)---(35,834)--
Adjusted EBITDA$156,121$244,461$227,786$129,782$224,205$60,058$107,560$144,152$177,509$163,139
Reconciliation of net cash provided by (used in) operating activities to EBITDA
Net cash provided by (used in) operating activities (1)$255,147$344,902$70,506$(119,886)$348,442$121,893$(103,714)$14,160$362,441$228,395
Net changes in operating assets and liabilities and certain non-cash items(136,960)(141,558)88,609(6,795)(185,673)(73,024)188,871(100,647)(244,062)(150,210)
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest(5,149)(9,747)(4,882)35,458(416)(72)435,675(296)(513)
Interest expense, excluding the impact of noncontrolling interest43,53747,71973,32986,31986,23023,28721,44565,19265,83686,963
Income tax expense (benefit)819963(1,873)53(23,563)(164)(913)1,66872(1,543)
EBITDA (1)157,394242,279225,689(4,851)225,02071,920105,693$16,048$183,991163,092
Net (gain) loss on sale and disposition of assets(1,273)2,1822,09720,495(1,624)(11,862)1,86713,966(7,291)(762)
Goodwill and long-lived asset impairment---149,972809--149,972809809
Goodwill and long-lived asset impairment attributable to noncontrolling interest---(35,834)---(35,834)--
Adjusted EBITDA$156,121$244,461$227,786$129,782$224,205$60,058$107,560$144,152$177,509$163,139
PROOF EBITDA----------
Reported EBITDA157,394242,279225,689(4,851)225,02071,920105,69316,048183,991163,092
----------
PROOF Adjusted EBITDA----------
Reported Adjusted EBITDA156,121244,461227,786129,782224,20560,058107,560144,152177,509163,139
----------
(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)In December 2016, the Partnership voluntarily terminated early a sublease for 1,610 railcars and, as a result, recorded lease exit and termination expenses of $80.7 million for the twelve months ended December 31, 2016. Excluding these expenses, Adjusted EBITDA would have been $210.4 million for the twelve months ended December 31, 2016.
(3)Adjusted EBITDA for the three months ended March 31, 2018 includes a one-time non-cash gain of approximately $52.6 million as a result of the extinguishment of a contingent liability related to a Volumetric Ethanol Excise Tax Credit.
&8&Z&F-&A
DCF
GLOBAL PARTNERS LP
FINANCIAL RECONCILIATIONS - DISTRIBUTABLE CASH FLOW
(In thousands)
(Unaudited)10/30/17
updated but not includedTrailing
in the presentationTwelve
Three Months EndedNine Months EndedMonths Ended
Year Ended December 31,MarchSeptember 30,September 30,
2013201420152016 (3)2017 (4)2017 (5)2018 (5)2016 (3)2017 (3)2017
Reconciliation of net income (loss) to distributable cash flow
Net income (loss) (1)$41,053$116,980$43,264$(238,623)$57,117$22,505$58,675$(172,961)$38,956$(26,706)
Net loss (income) attributable to noncontrolling interest1,562(2,271)29939,2111,63544136739,0761,2421,377
Net income (loss) attributable to Global Partners LP (1)42,615114,70943,563(199,412)58,75222,94659,042(133,885)40,198(25,329)
Depreciation and amortization, excluding the impact of noncontrolling interest70,42378,888110,670108,189103,60125,85126,11983,07377,885103,001
Amortization of deferred financing fees and senior notes discount7,2656,1866,9887,4127,0891,8911,7135,5065,3747,280
Amortization of routine bank refinancing fees(4,072)(4,444)(4,516)(4,580)(4,277)(1,167)(1,022)(3,413)(3,249)(4,416)
Non-cash tax reform benefit----(22,183)--
Maintenance capital expenditures, excluding the impact of noncontrolling interest(10,977)(34,115)(29,850)(32,989)(34,718)(5,347)(6,082)(20,854)(21,943)(34,078)
Distributable cash flow (2)$105,254$161,224$126,855$(121,380)$108,264$44,174$79,770$(69,573)$98,265$46,458
Reconciliation of net cash provided by (used in) operating activities to
distributable cash flow
Net cash provided by (used in) operating activities (1)$255,147$344,902$70,506$(119,886)$348,442$121,893$(103,714)$14,160$362,441$228,395
Net changes in operating assets and liabilities and certain non-cash items(136,960)(141,558)88,609(6,795)(185,673)(73,024)188,871(100,647)(244,062)(150,210)
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest(5,149)(9,747)(4,882)35,458(416)(72)435,675(296)(513)
Amortization of deferred financing fees and senior notes discount7,2656,1866,9887,4127,0891,8911,7135,5065,3747,280
Amortization of routine bank refinancing fees(4,072)(4,444)(4,516)(4,580)(4,277)(1,167)(1,022)(3,413)(3,249)(4,416)
Non-cash tax reform benefit----(22,183)--
Maintenance capital expenditures, excluding the impact of noncontrolling interest(10,977)(34,115)(29,850)(32,989)(34,718)(5,347)(6,082)(20,854)(21,943)(34,078)
Distributable cash flow (2)$105,254$161,224$126,855$(121,380)$108,264$44,174$79,770$(69,573)$98,265$46,458
Proof----------
Reported105,254161,224126,855(121,380)108,26444,17479,770(69,573)98,26546,458
Difference----------
(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)As defined by the Partnership's partnership agreement, distributable cash flow is not adjusted for certain non-cash items, such as net losses on the sale and disposition of assets and goodwill and long-lived asset impairment charges.
(3)Distributable cash flow for 2016 includes a net loss on sale and disposition of assets of $20.5 million and lease exit and termination expenses of $80.7 million. Distributable cash flow also includes a net goodwill and long-lived asset impairment of $114.1 million ($149.9 million attributed to the Partnership, offset by $35.8 million attributed to the noncontrolling interest). Excluding these charges, distributable cash flow would have been $93.9 million for 2016.
(4)Distributable cash flow for 2017 includes a net loss on sale and disposition of assets of $12.5 million and a net goodwill and long-lived asset impairment of $0.8 million. Excluding these charges, distributable cash flow would have been $121.6 million for 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.
(5)Distributable cash flow includes a net loss on sale and disposition of assets of $2.3 million and $1.9 million for the three months ended March 31, 2017 and 2018, respectively. Excluding the loss on sale and disposition of assets, distributable cash flow would have been $46.5 million and $81.6 million for the three months ended March 31, 2017 and 2018, respectively. For the three months ended March 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. For the three months ended March 31, 2018, distributable cash flow also includes a one-time non-cash gain of approximately $52.6 million as a result of the extinguishment of a contingent liability related to a Volumetric Ethanol Excise Tax Credit.
&8&Z&F-&A
Sheet1
Financial Reconciliations: EBITDA and Adjusted EBITDA
32
(In thousands)(Unaudited)
Reconciliation of net income (loss) to EBITDANet income (loss) (1) $ 41,053 $ 116,980 $ 43,264 $ (238,623) $ 57,117 $ 22,505 $ 58,675 Net loss (income) attributable to noncontrolling interest 1,562 (2,271) 299 39,211 1,635 441 367 Net income (loss) attributable to Global Partners LP (1) 42,615 114,709 43,563 (199,412) 58,752 22,946 59,042 Depreciation and amortization, excluding the impact of noncontrolling interest 70,423 78,888 110,670 108,189 103,601 25,851 26,119 Interest expense, excluding the impact of noncontrolling interest 43,537 47,719 73,329 86,319 86,230 23,287 21,445 Income tax expense (benefit) 819 963 (1,873) 53 (23,563) (164) (913) EBITDA (1) 157,394 242,279 225,689 (4,851) 225,020 71,920 105,693 Net (gain) loss on sale and disposition of assets (1,273) 2,182 2,097 20,495 (1,624) (11,862) 1,867 Goodwill and long-lived asset impairment - - - 149,972 809 - - Goodwill and long-lived asset impairment attributable to noncontrolling interest - - - (35,834) - - - Adjusted EBITDA $ 156,121 $ 244,461 $ 227,786 $ 129,782 $ 224,205 $ 60,058 $ 107,560
Reconciliation of net cash provided by (used in) operating activities to EBITDANet cash provided by (used in) operating activities (1) $ 255,147 $ 344,902 $ 62,506 $ (119,886) $ 348,442 $ 121,893 $ (103,714) Net changes in operating assets and liabilities and certain non-cash items (136,960) (141,558) 96,609 (6,795) (185,673) (73,024) 188,871 Net cash from operating activities and changes in operating assets and liabilities attributable to noncontrolling interest (5,149) (9,747) (4,882) 35,458 (416) (72) 4 Interest expense, excluding the impact of noncontrolling interest 43,537 47,719 73,329 86,319 86,230 23,287 21,445 Income tax expense (benefit) 819 963 (1,873) 53 (23,563) (164) (913) EBITDA (1) 157,394 242,279 225,689 (4,851) 225,020 71,920 105,693 Net (gain) loss on sale and disposition of assets (1,273) 2,182 2,097 20,495 (1,624) (11,862) 1,867 Goodwill and long-lived asset impairment - - - 149,972 809 - - Goodwill and long-lived asset impairment attributable to noncontrolling interest - - - (35,834) - - - Adjusted EBITDA $ 156,121 $ 244,461 $ 227,786 $ 129,782 $ 224,205 $ 60,058 $ 107,560
(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)
(3) Adjusted EBITDA for the three months ended March 31, 2018 includes a one-time non-cash gain of approximately $52.6 million as a result of the extinguishment of a contingent liability related to a Volumetric Ethanol Excise Tax Credit.
20152013Year Ended December 31,
In December 2016, the Partnership voluntarily terminated early a sublease for 1,610 railcars and, as a result, recorded lease exit and termination expenses of $80.7 million for the twelve months ended December 31, 2016. Excluding these expenses, Adjusted EBITDA would have been $210.4 million for the twelve months ended December 31, 2016.
2014 20172016 (2) 2017 2018 (3)March 31,
Three Months Ended
Financial Reconciliations: DCF
33
(In thousands)(Unaudited)
Reconciliation of net income (loss) to distributable cash flowNet income (loss) (1) $ 41,053 $ 116,980 $ 43,264 $ (238,623) $ 57,117 $ 22,505 $ 58,675 Net loss (income) attributable to noncontrolling interest 1,562 (2,271) 299 39,211 1,635 441 367 Net income (loss) attributable to Global Partners LP (1) 42,615 114,709 43,563 (199,412) 58,752 22,946 59,042 Depreciation and amortization, excluding the impact of noncontrolling interest 70,423 78,888 110,670 108,189 103,601 25,851 26,119 Amortization of deferred financing fees and senior notes discount 7,265 6,186 6,988 7,412 7,089 1,891 1,713 Amortization of routine bank refinancing fees (4,072) (4,444) (4,516) (4,580) (4,277) (1,167) (1,022) Non-cash tax reform benefit - - - - (22,183) - - Maintenance capital expenditures, excluding the impact of noncontrolling interest (10,977) (34,115) (29,850) (32,989) (34,718) (5,347) (6,082) Distributable cash flow (2) $ 105,254 $ 161,224 $ 126,855 $ (121,380) $ 108,264 $ 44,174 $ 79,770
Reconciliation of net cash provided by (used in) operating activities todistributable cash flow
Net cash provided by (used in) operating activities (1) $ 255,147 $ 344,902 $ 62,506 $ (119,886) $ 348,442 $ 121,893 $ (103,714) Net changes in operating assets and liabilities and certain non-cash items (136,960) (141,558) 96,609 (6,795) (185,673) (73,024) 188,871 Net cash from operating activities and changes in operating assets and liabilities attributable to noncontrolling interest (5,149) (9,747) (4,882) 35,458 (416) (72) 4 Amortization of deferred financing fees and senior notes discount 7,265 6,186 6,988 7,412 7,089 1,891 1,713 Amortization of routine bank refinancing fees (4,072) (4,444) (4,516) (4,580) (4,277) (1,167) (1,022) Non-cash tax reform benefit - - - - (22,183) - - Maintenance capital expenditures, excluding the impact of noncontrolling interest (10,977) (34,115) (29,850) (32,989) (34,718) (5,347) (6,082) Distributable cash flow (2) $ 105,254 $ 161,224 $ 126,855 $ (121,380) $ 108,264 $ 44,174 $ 79,770
(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)
(3)
(4)
(5)
2014 2017 (5) 2018 (5)March
Three Months Ended
Distributable cash flow includes a net loss on sale and disposition of assets of $2.3 million and $1.9 million for the three months ended March 31, 2017 and 2018, respectively. Excluding the loss on sale and disposition of assets, distributable cash flow would have been $46.5 million and $81.6 million for the three months ended March 31, 2017 and 2018, respectively. For the three months ended March 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. For the three months ended March 31, 2018, distributable cash flow also includes a one-time non-cash gain of approximately $52.6 million as a result of the extinguishment of a contingent liability related to a Volumetric Ethanol Excise Tax Credit.
2017 (4)
Distributable cash flow for 2017 includes a net loss on sale and disposition of assets of $12.5 million and a net goodwill and long-lived asset impairment of $0.8 million. Excluding these charges, distributable cash flow would have been $121.6 million for 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.
Year Ended December 31,
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.
Distributable cash flow for 2016 includes a net loss on sale and disposition of assets of $20.5 million and lease exit and termination expenses of $80.7 million. Distributable cash flow also includes a net goodwill and long-lived asset impairment of $114.1 million ($149.9 million attributed to the Partnership, offset by $35.8 million attributed to the noncontrolling interest). Excluding these charges, distributable cash flow would have been $93.9 million for 2016.
2016 (3)2013 2015
Slide Number 1Forward-Looking StatementsUse of Non-GAAP Financial MeasuresBusiness OverviewGlobal Partners at a GlanceGlobal by the NumbersGlobal’s History and EvolutionKey Acquisitions and InvestmentsTransformation of Product MarginGlobal’s DNA and Strategy Creating Value Through Growth Initiatives and OptimizationBusiness Overview730KSlide Number 14One of the Largest Operators of Gasoline Stations andConvenience Stores in the NortheastGDSO Segment Competitive StrengthsTrack Record of Acquisitive GrowthQ318 Acquisitions – Champlain Oil and Cheshire Oil GDSO Segment - Growth Through Organic and M&A InitiativesWholesale SegmentWholesale Terminals – NortheastEthanol Transloading in OregonCommercial SegmentCommercial Segment OverviewFinancial SummaryQ1 2018 Financial PerformanceFY 2017 Financial PerformanceVolume and MarginBalance Sheet at March 31, 2018AppendixFinancial Reconciliations: Product MarginFinancial Reconciliations: EBITDA and Adjusted EBITDAFinancial Reconciliations: DCF