Global Partners LP (GLP) 2024 Q2 法說會逐字稿

Good day, everyone, and welcome to the Global Partners second-quarter 2024 financial results conference call. Today's call is being recorded. (Operator Instructions)

大家好，歡迎參加 Global Partners 2024 年第二季財務業績電話會議。今天的通話正在錄音。（操作員說明）

With us from Global Partners are President and Chief Executive Officer Mr. Eric Slifka; Chief Financial Officer Mr. Gregory Hanson; Chief Operating Officer Mr. Mark Romaine; and Chief Legal Officer and Secretary Mr. Sean Geary. At this time, I would like to turn the call over to Mr. Geary for opening remarks. Please go ahead, sir.

Global Partners 的總裁兼執行長 Eric Slifka 先生與我們在一起；財務長 Gregory Hanson 先生；營運長 Mark Romaine 先生；首席法務官兼秘書 Sean Geary 先生。現在，我想將電話轉交給吉爾裡先生致開幕詞。請繼續，先生。

Good morning, everyone. Thank you for joining us. Today's call will include forward-looking statements within the meaning of federal securities laws, including projections and expectations concerning the future financial and operational performance of Global Partners.

大家早安。感謝您加入我們。今天的電話會議將包括聯邦證券法含義內的前瞻性陳述，包括有關 Global Partners 未來財務和營運績效的預測和預期。

No assurances can be given that these projections will be attained or that these expectations will be met. Our assumptions in future performance are subject to a wide range of business risks, uncertainties and factors which could cause actual results to differ materially as described in our filings with the Securities and Exchange Commission. Global Partners undertakes no obligation to revise or update any forward-looking statements.

無法保證這些預測將會實現或這些期望將會得到滿足。我們對未來績效的假設受到廣泛的商業風險、不確定性和因素的影響，這些風險、不確定性和因素可能導致實際結果與我們向美國證券交易委員會提交的文件中所述的存在重大差異。Global Partners 不承擔修改或更新任何前瞻性聲明的義務。

So it's my pleasure to turn the call over to our President and Chief Executive Officer Eric Slifka.

因此，我很高興將電話轉給我們的總裁兼執行長 Eric Slifka。

Thank you, Sean, and good morning, everyone. The company delivered year-over-year growth across all key profitability metrics in Q2. Our results continue to reinforce the strength of our business model and our integrated portfolio of liquid energy terminals, fueling stations and convenience market.

謝謝肖恩，大家早安。該公司第二季所有關鍵獲利指標均實現年成長。我們的業績持續加強我們的業務模式以及我們的液體能源終端、加油站和便利市場的綜合投資組合的實力。

Looking at our overall performance in Q2, we posted gains in operating income, net income, DCF and adjusted EBITDA, driven by strong results in both our wholesale and GDSO segments over the past nine months, we've invested more than $500 million to significantly expand our wholesale segment footprint through the strategic acquisition of a combined 29 terminals from multi to enterprise and Gulf Oil more than double our storage capacity to 21.4 million barrels.

從我們第二季的整體業績來看，在過去九個月批發和GDSO 部門強勁業績的推動下，我們在營業收入、淨利潤、DCF 和調整後EBITDA 方面均取得了增長，我們已投資超過5億美元，以顯著提高業績。

These terminals expand our geographic reach within New England along the eastern seaboard and into Florida the Gulf Coast and Texas, we have identified numerous opportunities to invest and optimize in these newly acquired terminals.

這些碼頭擴大了我們在新英格蘭東部沿海地區的地理範圍，並進入佛羅裡達州墨西哥灣沿岸和德克薩斯州，我們已經發現了許多投資和優化這些新收購的碼頭的機會。

As we've discussed on prior calls, the Motiva transaction is underpinned by a 25 year take-or-pay throughput agreement that includes minimum annual revenue commitments.

正如我們在先前的電話會議中討論的那樣，Motiva 交易以 25 年照付不議吞吐量協議為基礎，其中包括最低年收入承諾。

I also want to highlight GDSO solid performance. The segment continues to benefit from healthy retail fuel margins and successful merchandising initiatives in our convenience markets.

我還想強調 GDSO 的穩健表現。該部門繼續受益於健康的零售燃料利潤和便利市場的成功行銷計劃。

Turning to our distribution, in July, the Board declared a quarterly cash distribution on our common units of $0.72 or $2.88 on an annualized basis. This distribution represents a 6.7% increase over the prior year and is payable on August 14 to unitholders of record as of the close of business on August 8. Let me turn the call over to Greg for the financial review. Greg?

談到我們的分配，7 月份，董事會宣布對我們的普通單位進行季度現金分配，按年化計算為 0.72 美元或 2.88 美元。此次分配比上一年增加了 6.7%，並於 8 月 14 日支付給截至 8 月 8 日收盤時記錄在案的單位持有人。讓我把電話轉給格雷格進行財務審查。格雷格？

Thank you, Eric and good morning, everyone. As we review the numbers, please note that unless otherwise noted, all comparisons will be with the second quarter of 2023. Adjusted EBITDA was $121.1 million in the second quarter compared with $90.4 million net income of $46.1 million compared with $41.4 million in the second quarter of 2023.

謝謝你，艾瑞克，大家早安。當我們審查這些數字時，請注意，除非另有說明，否則所有比較都將與 2023 年第二季進行。第二季調整後 EBITDA 為 1.211 億美元，淨利為 9,040 萬美元，淨利為 4,610 萬美元，而 2023 年第二季淨利為 4,140 萬美元。

Distributable cash flow was $73.1 million in the second quarter of '24 compared with $54.8 million in 2023. And adjusted DCF was $74.2 million compared with $53.3 million. LTM distribution coverage as of June 30 was 1.8 times or 1.6 times after factoring in distributions to our preferred unitholders.

2024 年第二季的可分配現金流為 7,310 萬美元，而 2023 年為 5,480 萬美元。調整後的 DCF 為 7,420 萬美元，而去年同期為 5,330 萬美元。截至 6 月 30 日，LTM 分配覆蓋範圍為 1.8 倍或 1.6 倍（考慮到對我們的優先單位持有人的分配）。

Turning to our segment details, GDSO product margin increased $22.4 million in the quarter to $221.5 million and product margin from gasoline distribution increased $19.4 million to $147.3 million, primarily reflect reflecting higher fuel margins year over year on a cents per gallon basis, fuel margins increased $0.05 to $0.36 in Q2 '24 from $0.31 in Q2 '23.

轉向我們的部門詳細信息，GDSO 產品利潤率在本季度增加了2240 萬美元，達到2.215 億美元，汽油分銷的產品利潤率增加了1940 萬美元，達到1.473 億美元，主要反映了以每加侖美分為基礎的燃料利潤率年增，燃料利潤率增加2024 年第二季從 23 年第二季的 0.31 美元增至 0.05 美元至 0.36 美元。

Station operations product margin, which includes convenience, store and prepared food sales. Sundries and rental income increased $3 million to $74.2 million in the second quarter of 2024, highlighting the continued success of our merchandising efforts.

車站營運產品利潤，包括便利商店、商店和預製食品銷售。2024 年第二季度，雜貨和租金收入增加了 300 萬美元，達到 7,420 萬美元，凸顯了我們的行銷工作持續取得成功。

At quarter end, our portfolio of fueling stations and C-store sites totaled 1,595. Additionally, we operate 64 sites under our spring partners' retail joint venture.

截至季末，我們的加油站和便利商店站點組合總計 1,595 個。此外，我們還在 Spring 合作夥伴的零售合資企業下營運 64 個站點。

Looking at the wholesale segment, second quarter 2024 product margin increased $32.2 million to $91.9 million. Product margin from gasoline and gasoline blend stocks increased $31.4 million to $70.4 million, primarily due to the acquisition of the Motiva terminals in December of '23 and more favorable market conditions in gasoline from product margin from distillates and other oils increased $0.8 million to $21.5 million, primarily due to more favorable market conditions in distillates partially offset by less favorable market conditions and residual oil.

從批發領域來看，2024 年第二季產品利潤率增加了 3,220 萬美元，達到 9,190 萬美元。汽油和汽油混合庫存的產品利潤增加了3,140 萬美元，達到7,040 萬美元，主要是由於2023 年12 月收購了Motiva 終端，並且餾分油和其他油品的產品利潤增加了80 萬美元，達到了2150萬美元。

I would also add, as we mentioned the first quarter earnings call, certain products in our wholesale segment were negatively impacted by the timing of mark to market valuations in the first quarter. Those impacts were fully recovered in the second quarter.

我還想補充一點，正如我們在第一季財報電話會議中提到的那樣，我們批發部門的某些產品受到第一季按市值計價的時間的負面影響。這些影響在第二季完全恢復。

Commercial segment product margin decreased $0.6 million to $6.2 million, primarily due to less favorable market conditions.

商業部門產品利潤率下降 60 萬美元至 620 萬美元，主要是由於市場條件較差。

Turning to expenses. Operating expenses increased $19.6 million to $130 million second quarter, largely related to the terminal acquisitions for Motiva implants.

轉向開支。第二季營運費用增加 1,960 萬美元，達到 1.3 億美元，主要與 Motiva 植入物的終端收購有關。

SG&A expense increased $ 5.6 million in Q2 24 to $72.3 million, primarily due to increases in long-term incentive comp wages and benefits and professional fees.

2024 年第二季度，SG&A 費用增加了 560 萬美元，達到 7,230 萬美元，主要是由於長期激勵薪資和福利以及專業費用的增加。

Interest expense increased $13.7 million to $35.5 million in the second quarter of '24, primarily due to the interest expense related to the eight and a quarter senior notes issued this past January, which were used to facilitate the motif acquisition and higher average balances on our credit facilities as a result of the recent Gulf terminals acquisition.

2024 年第二季的利息支出增加了1,370 萬美元，達到3,550 萬美元，主要是由於去年1 月發行的八又四分之一優先票據相關的利息支出，這些票據用於促進主題收購和我們的平均餘額增加。

CapEx in the second quarter was $15.6 million, consisting of $8.9 million of maintenance CapEx and $6.7 million of expansion CapEx, primarily related to investments in our gasoline station and terminal businesses. For the full year 2024, we currently expect maintenance capital expenditures in the range of $50 million to $60 million and expanded capital expenditures, including excluding acquisitions, in the range of $60 million to $70 million relating primarily to our gasoline station and terminaling businesses.

第二季的資本支出為 1,560 萬美元，其中包括 890 萬美元的維護資本支出和 670 萬美元的擴張資本支出，主要與我們的加油站和碼頭業務的投資有關。對於2024 年全年，我們目前預計維護資本支出在5,000 萬至6,000 萬美元之間，擴大資本支出（包括不包括收購）在6,000 萬至7,000 萬美元之間，主要與我們的加油站和碼頭業務有關。

These current estimates depend in part on the timing of project completion, availability, equipment and workforce weather and unanticipated events and opportunities requiring additional maintenance or investments.

目前的估計部分取決於專案完成的時間、可用性、設備和勞動力天氣以及需要額外維護或投資的意外事件和機會。

Our balance sheet remains strong at June 30 with leverage as defined in our credit agreement as funded debt to EBITDA at 3.48 times and ample excess capacity in our credit facilities. As of June 30, we had $281.2 million in borrowings outstanding on our working capital revolving credit facility and $200 million outstanding on the revolving credit facility.

截至 6 月 30 日，我們的資產負債表仍然強勁，我們的信貸協議中所定義的槓桿率是 EBITDA 的融資債務的 3.48 倍，並且我們的信貸安排中有充足的過剩產能。截至 6 月 30 日，我們的營運資金循環信貸安排的未償還借款為 2.812 億美元，循環信貸安排的未償還借款為 2 億美元。

As I noted on our Q1 call on April 15, we fully redeemed all the outstanding Series A fixed-to-floating rate cumulative redeemable perpetual preferred units. This transaction was immediately accretive to distributable cash flow and at current interest rates is expected to be approximately $0.09 accretive per unit on an annual basis.

正如我在 4 月 15 日的第一季電話會議中指出的那樣，我們完全贖回了所有未償還的 A 系列固定利率至浮動利率累積可贖回永久優先單位。這項交易立即增加了可分配現金流，以當前利率計算，預計每單位每年可增加約 0.09 美元。

Turning to our upcoming Investor Relations calendar next week, we'll be participating in the Citi 2024 one and one midstream in New Energy Infrastructure Conference. Please contact our IR team if you'd like to schedule me during the conference.

談到下週即將推出的投資者關係日曆，我們將參加花旗 2024 年一對一中游新能源基礎設施會議。如果您想在會議期間安排我，請聯絡我們的 IR 團隊。

Now let me turn the call back to Eric for closing comments.

現在讓我把電話轉回艾瑞克以徵求結束意見。

Thanks, Greg. In closing, we began the second half of the year with positive momentum. We look forward to building on our success in the first-half of 2024 by continuing to execute our strategic growth objectives and deliver value for our unitholders.

謝謝，格雷格。最後，我們以積極的勢頭開始了下半年。我們期待透過繼續執行我們的策略成長目標並為我們的單位持有者創造價值，在 2024 年上半年取得成功。

With that, Greg, Mark and I will be happy to take your questions.

格雷格、馬克和我將很樂意回答您的問題。

Operator, please open the line for Q&A.

接線員，請開通問答線。

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員說明）

Selman Akyol, Stifel. Please proceed with your question.

塞爾曼·阿克奧爾，史蒂菲爾。請繼續你的問題。

Thank you very much. Congratulations on a nice quarter. I wanted to just follow up on your opening comments where you talked about the wholesale, the investment that you've done, if you tied it up with sort of opportunities to invest and I wanted to explore that.

非常感謝。恭喜您度過了一個美好的季度。我想跟進您的開場白，您談到了批發、您所做的投資，如果您將其與某種投資機會聯繫起來，我想對此進行探索。

Can you just maybe explain that a little bit more in the sense of are you seeing more terminals at are you talking about trying to fill in a GDSO around terminals that you now have that you didn't previously? Maybe you could just explain that a little bit more.

您能否解釋一下，您是否看到了更多終端，您是否在談論嘗試在您現在擁有但以前沒有的終端周圍填寫 GDSO？也許你可以再解釋一下。

Hi Selmon, it's Eric, I would say generally on M&A remains active, both in the terminaling business as well as in the retail business. But we've bought a lot of terminals relative to our total terminal count here in LA. was six months. And so I think there's a real opportunity to make sure that we're maximizing the value that we can get from each asset that we now have.

嗨，塞爾蒙，我是埃里克，我想說的是，無論是在終端業務還是在零售業務，併購總體上仍然活躍。但相對於洛杉磯的終端總數，我們已經購買了許多終端。是六個月。因此，我認為這是一個真正的機會來確保我們能夠從現有的每項資產中獲得最大的價值。

And you know, there will be some investment there, but it's also know how we operate, how we operate differently and it could be things that are around rail capacity and building out a unit train capacity. It's just about trying to provide flexibility around the existing assets that we have. And so I think there's a real opportunity for us to drive value just through the existing assets as well.

你知道，那裡將會有一些投資，但它也知道我們如何運作，我們如何以不同的方式運作，這可能是圍繞鐵路容量和建造單位列車容量的事情。這只是嘗試為我們現有的資產提供靈活性。因此，我認為我們也有真正的機會透過現有資產來推動價值。

Got it. And then also, you talked about increased merchandising efforts. And I'm just wondering has that rolled through out all your stores? Or should we expect that as an ongoing effort and to see benefits in future quarters as well?

知道了。然後，您也談到了加大行銷力度。我只是想知道你們所有的商店都這樣做了嗎？或者我們應該期望這是一項持續的努力，並在未來幾季看到好處？

Yeah, good morning, Selmon, it's Mark. It has those efforts are spread across the entire portfolio. And then they're not new. I mean, we have we have always tried to optimize our merchandising plan, optimize our SKUs optimize our pricing and introduce new items, as you know, is things change in the marketplace.

是的，早上好，塞爾蒙，我是馬克。這些努力遍佈整個投資組合。而且它們並不新鮮。我的意思是，我們一直在努力優化我們的銷售計劃、優化我們的 SKU、優化我們的定價並推出新產品，正如您所知，市場情況正在改變。

So that's an ongoing effort and I think we continue to improve in that area. We continue to and we continue to see the benefit of that through our execution. So that's something new that's an ongoing effort through the entire portfolio, and we'll continue to work away at that.

因此，這是一項持續的努力，我認為我們在該領域不斷改進。我們將繼續並繼續透過我們的執行看到這一點的好處。因此，這是整個產品組合中持續努力的新事物，我們將繼續努力。

Understood. And then just the last one for me on any update on your JV down in Houston and potentially more sites coming?

明白了。然後是我的最後一篇關於你們在休士頓的合資企業的任何更新以及可能會有更多網站的更新？

Hey, Selmon, it's Greg. Yeah, I mean we continue to be encouraged by the JV. I think it opens up another geography for us on the retail front, especially a very large state and one of the largest convenience store markets in the US. And yeah, I mean, I we hope to continue to grow that joint venture. As Eric mentioned, the retail M&A market continues to be pretty active so we can continue to look at all opportunities in that geography to potentially hopefully expand that.

嘿，塞爾蒙，我是格雷格。是的，我的意思是我們繼續受到合資企業的鼓勵。我認為這為我們在零售方面開闢了另一個地理空間，特別是一個非常大的州和美國最大的便利商店市場之一。是的，我的意思是，我們希望繼續發展該合資企業。正如艾瑞克所提到的，零售併購市場仍然非常活躍，因此我們可以繼續尋找該地區的所有機會，以期有望擴大這個市場。

Thank you so much.

太感謝了。

Thank you. I will now turn the call back to Mr. Slifka for closing comments.

謝謝。現在我將把電話轉回斯利夫卡先生以徵求結束意見。

Thanks for joining us this morning, and we look forward to keeping you updated on our progress. Thanks so much, everybody.

感謝您今天早上加入我們，我們期待向您通報我們的最新進展。非常感謝大家。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。