Global Partners LP Reports Financial Results for Fourth-Quarter and Full-Year 2007

Business Wire,  March 13, 2008  

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WALTHAM, Mass. -- Global Partners LP (NYSE: GLP) today reported financial results for the fourth quarter and full year ended December 31, 2007.

Financial Highlights

Net income for the fourth quarter of 2007 was $11.0 million, or $0.72 per diluted limited partner unit, compared with $11.1 million, or $0.78 per diluted limited partner unit, for the fourth quarter of 2006. For the full year 2007, net income was $47.0 million, or $1.38 per diluted limited partner unit, compared with $33.5 million, or $2.46 per diluted limited partner unit, for 2006. Net income for the full year 2007 included a $14.1 million gain from the partnership's sale of its investment in NYMEX Holdings, Inc. and related NYMEX seats.

Adjusted net income per diluted limited partner unit was $0.83 for the fourth quarter of 2007 compared with $0.97 for the fourth quarter of 2006. For the 12 months ended December 31, 2007, adjusted net income per diluted limited partner unit was $3.92 compared with $2.91 for the comparable period in 2006.

Weighted average diluted limited partner units outstanding were 13.1 million for the fourth quarter of 2007 compared with 11.3 million for the fourth quarter of 2006. For the full year 2007, weighted average diluted limited partner units outstanding were 12.4 million compared with 11.3 million for the corresponding period of 2006.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2007 increased 26% to $21.8 million from $17.3 million for the fourth quarter of 2006. EBITDA for the full year 2007, which included the $14.1 million gain, was $75.2 million compared with $51.5 million for 2006. Adjusted EBITDA for the full year 2007, which excluded the $14.1 million gain, was $61.1 million.

Distributable cash flow for the fourth quarter of 2007 increased 15% to $13.3 million from $11.5 million for the fourth quarter of 2006. For the full year 2007, distributable cash flow increased 7% to $38.6 million compared with $36.0 million for 2006.

"We enjoyed a strong year in 2007, with growth in EBITDA and distributable cash flow," said Global Partners President and Chief Executive Officer Eric Slifka. "We concluded the year with a solid quarter that reflects the success of our product marketing programs and the significant expansion of our terminal network. During the year we added more than 1.9 million barrels of storage capacity with the acquisitions from ExxonMobil Oil Corporation of four refined petroleum products terminals in New York and one in Vermont. These assets underscore our strategy of increasing the percentage of product volume generated from transportation fuels and other non-weather-related products."

Sales for the fourth quarter of 2007 increased to $2.2 billion from $1.1 billion for the fourth quarter of 2006, reflecting the partnership's acquisitions of refined petroleum products terminals and higher refined petroleum product prices. Wholesale segment sales were $2.1 billion in the fourth quarter of 2007 compared with $996.1 million for the fourth quarter of 2006. Commercial segment sales were $110.1 million for the fourth quarter of 2007 compared with $98.1 million in the fourth quarter of 2006. Sales for the full year 2007 increased to $6.8 billion compared with $4.5 billion for 2006. Wholesale segment sales increased to $6.4 billion for 2007 from $4.1 billion for 2006, while Commercial segment sales decreased to $381.1 million for the full year 2007 compared with $400.8 million for 2006.

Combined gross profit increased to $39.2 million in the fourth quarter of 2007 from $34.6 million for the fourth quarter of 2006. For the full year 2007, combined gross profit increased to $127.0 million compared with $113.2 million for the same period of 2006.

Net income as adjusted for one-time gains, adjusted net income per diluted limited partner unit, EBITDA, adjusted 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 and 12 months ended December 31, 2007 and 2006.

Recent Highlights

* Global Partners announced a quarterly cash distribution of $0.4875 per unit ($1.95 on an annualized basis) on all of its outstanding limited partner units for the period from October 1, 2007 through December 31, 2007. The distribution represented an increase of 7.1% over the quarterly distribution of $0.4550 paid in February 2007 and an increase of 1.6% over the November 2007 distribution of $0.4800. The distribution was paid February 14, 2008 to unitholders of record as of the close of business February 5, 2008.

* The partnership opened a new distillate and biofuels terminal in Providence, Rhode Island. The terminal, which has the capacity to store 244,000 barrels of refined petroleum products, is part of Global Partners' new deepwater marine terminal project being developed at the Port of Providence. This project also includes 230,000 barrels of residual fuels storage capacity that is scheduled to open for business later this year.