Financial Report Card and Business Updates at a Glance - Report on Global Partners LP

Jul 30, 2015, 09:15 ET from www.aciassociation.com

NEW YORK, July 30, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Global Partners LP (NYSE: GLP). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=GLP

Highlights from our GLP Report include:

  • First Quarter 2015 Financial Results - On May 7, 2015, Global Partners LP reported its Q1 2015 sales at $3.0 billion, vis-a-vis $5.1 billion in the prior year period. According to the Company, the decline was driven by primarily due to lower commodity prices. Net income attributable to Global Partners was $30.4 million, or $0.92 per diluted limited partner unit, compared with $57.0 million, or $2.03 per diluted limited partner unit, in Q1 2014.
  • Mixed results across Segments in Terms of Profitability Margins - Gross profit was $168.6 million, compared to $159.0 million in Q1 2014. Wholesale segment product margin (product sales minus product costs) was $80.1 million, versus $107.8 million in Q1 2014, this dip being due to favorable market opportunities in the gasoline blendstocks market in Q1 2014, which did not recur in Q1 2015. Product margin in the GDSO segment was $98.4 million, versus $53.1 million in Q1 2014, primarily due to the acquisition of Warren Equities along with favorable impact from declining gasoline prices. Commercial segment product margin was $11.6 million, compared to $12.3 million in Q1 2014. Combined product margin was $190.1 million, compared with $173.2 million in Q1 2014. EBITDA came in at $71.8 million, versus $86.5 million reported in Q1 2014. Distributable cash flow was $53.7 million, compared with $69.5 million in Q1 2014.
  • Recent Corporate and Business Updates - The release highlighted that Global has recently completed the acquisition of Warren Equities, Inc. from The Warren Alpert Foundation for c. $381 million. The Company noted that the acquisition increases its portfolio by 147 company-operated Xtra Mart convenience stores and related fuel operations, 53 commission agent locations and fuel supply rights for c. 320 dealers.
  • Guidance update & Upcoming Events - For FY 2015, the Company expects EBITDA in the range of $205 million to $225 million, which does not include the proposed acquisition of the Capitol Petroleum portfolio. Furthermore, Global Partners has scheduled to release its Q2 2015 financial results before the market opens on Thursday, August 6, 2015.  In conjugation with the earnings release, the Company will also host a conference call the same day at 10:00 a.m. ET.

To find out how this influences our rating on Global Partners LP, read the full report in its entirely here: http://www.aciassociation.com/?c=GLP

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