GLP » Topics » Global Partners LP Reports Third Quarter 2008 Financial Results

This excerpt taken from the GLP 8-K filed Nov 6, 2008.

Global Partners LP Reports Third Quarter 2008 Financial Results

Recently Acquired Terminal Assets Drive Strong Performance of Transportation Fuels

WALTHAM, Mass.--(BUSINESS WIRE)--November 6, 2008--Global Partners LP (NYSE:GLP) today reported financial results for the third quarter and nine months ended September 30, 2008.

Net income for the third quarter of 2008 was $1.0 million, or $0.08 per diluted limited partner unit, compared with net income of $2.5 million, or $0.19 per diluted limited partner unit, for the same period in 2007. The decrease in net income largely reflected higher depreciation in the third quarter of 2008 associated with the refined petroleum product terminals acquired late last year from ExxonMobil Oil Corp. The partnership had approximately 13.1 million weighted average limited partner units outstanding (basic and diluted) for the three months ended September 30, 2008 and 2007.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended September 30, 2008 was $10.1 million, compared with $9.9 million for the same period in 2007.

Distributable cash flow for the third quarter of 2008 was $4.2 million, compared with $4.5 million for the comparable quarter of 2007.

“We are pleased with our third-quarter results, which were highlighted by solid distributable cash flow and year-over-year increases in gross profit and EBITDA,” said Global Partners President and Chief Executive Officer Eric Slifka. “Our performance underscores the success of the strategic initiatives we have implemented over the past 18 months to significantly expand our asset base and diversify our product mix.

“The refined petroleum product terminals we acquired from ExxonMobil Oil Corp. in 2007 are performing ahead of plan and have contributed positively to our third-quarter results,” Slifka said. “Even with macroeconomic issues that have prompted consumers and businesses to focus more intently on conservation, on a year-over-year basis gasoline net product margin grew approximately $11 million to $13.6 million in the third quarter of 2008 on a 15% increase in volume. These assets, which enabled us to more than offset volume weakness in distillates and residual fuels in the third quarter, provide Global with a growing and significant base of year-round business.”

Sales for the three months ended September 30, 2008 increased to $2.3 billion from $1.6 billion for the same period in 2007. This increase reflected higher refined petroleum product prices as well as the partnership’s acquisition of two refined petroleum product terminals in Glenwood Landing and Inwood, New York in the fourth quarter of last year. Wholesale segment sales were $2.2 billion in the third quarter of 2008, compared with $1.5 billion for the third quarter of 2007. Commercial segment sales were $102.1 million for the third quarter of 2008, compared with $58.5 million in the third quarter of 2007. Combined gross profit for the three months ended September 30, 2008 was $25.9 million, compared with $23.9 million in the same period in 2007.

This excerpt taken from the GLP 8-K filed Aug 7, 2008.

Global Partners LP Reports Second Quarter 2008 Financial Results

Terminal Acquisitions and Strong Gasoline Business Help to Offset Challenging Market Conditions; Partnership Provides Distribution Outlook

WALTHAM, Mass.--(BUSINESS WIRE)--August 7, 2008--Global Partners LP (NYSE:GLP) today reported financial results for the second quarter and six months ended June 30, 2008.

The net loss for the second quarter of 2008 was $1.2 million, or $0.09 per limited partner unit, based on 13.1 million weighted average limited partner units outstanding. This result compared with net income of $0.6 million for the second quarter of 2007. Last year’s net loss of $1.28 per limited partner unit for the second quarter of 2007, based on 12.3 million weighted average limited partner units outstanding, was affected by EITF 98-05 in connection with the placement of Class B units.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2008 were $6.8 million compared with $5.6 million for the corresponding period of 2007.

Global Partners reported distributable cash flow for the second quarter of 2008 of $2.2 million compared with $1.6 million for the second quarter of 2007.

“Given the dramatic and rapid increase in prices in the refined petroleum products market, we are satisfied with our results for the second quarter, which historically is one of our weaker reporting periods,” said Global Partners President and Chief Executive Officer Eric Slifka. “Last year’s EBITDA in the second quarter, for example, represented only 9% of total adjusted EBITDA for the year. Like others in our sector, we were negatively affected by significantly higher energy prices that squeezed margins and reduced demand for certain products. We largely offset these market challenges by expanding our gasoline business, generating strong contributions from our recent terminal acquisitions and carefully managing expenses. This quarter’s result also benefited from a $2.5 million change in inventory reserve estimates as a result of improved operating procedures and efficiencies.

“The five terminals we acquired from ExxonMobil in 2007 have diversified our revenues by substantially growing the gasoline component of our business, and these assets continue to perform on plan,” Slifka said. “During the second quarter, volumes and margins in our gasoline business increased significantly. Gasoline contributed approximately 45% to our wholesale net product margin for the second quarter of 2008, compared with 11% in the same period last year.

“Another factor in our ability to overcome these challenging market conditions is the condition of our balance sheet, which continues to supply us with ample liquidity,” Slifka said. “Through our very supportive, 13-member bank group, we recently increased our borrowing capacity by $100 million and expanded our existing accordion feature by an additional $100 million. In this high priced market, the condition of our balance sheet provides us with a competitive advantage over smaller, less credit-worthy competitors and enables us to pursue additional opportunities for growth.”

Reflecting the partnership’s acquisition of the five terminals and higher refined petroleum product prices, sales for the second quarter of 2008 increased to $2.3 billion from $1.4 billion for the second quarter of 2007. Wholesale segment sales were $2.2 billion in the second quarter of 2008 compared with $1.3 billion for the second quarter of 2007. Commercial segment sales were $105.2 million for the second quarter of 2008 compared with $79.9 million in the second quarter of 2007. Combined gross profit for the three months ended June 30, 2008 was $22.7 million compared with $21.6 million in the same period of 2007.

Sales for the first six months of 2008 increased to $5.0 billion from $3.0 billion for the first half of 2007. Wholesale segment sales were $4.8 billion in the first half of 2008 compared with $2.7 billion in the same period in 2007. Commercial segment sales were $229.4 million in the first half of 2008 compared with $212.5 million in the comparable period of 2007. Combined gross profit for the six months ended June 30, 2008 was $58.3 million compared with $63.9 million in the first half of 2007.

EBITDA and distributable cash flow are non-GAAP (Generally Accepted Accounting Principles) financial measures explained in greater detail below under “Use of Non-GAAP Financial Measures.” Please refer to Financial Reconciliations included in this news release for reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures for the three months and six months ended June 30, 2008 and 2007.

This excerpt taken from the GLP 8-K filed May 8, 2008.

Global Partners LP Reports First Quarter 2008 Financial Results

WALTHAM, Mass.--(BUSINESS WIRE)--May 8, 2008--Global Partners LP (NYSE:GLP) today reported financial results for the first quarter ended March 31, 2008.

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