Sunoco LP to Use Stripes as Growth Platform
HOUSTON — Three months after Sunoco LP completed its acquisition of Susser Holdings Corp., the master limited partnership is pleased with the results thus far and plans to use the Stripes convenience store brand as a strong platform for organic growth and acquisitions, company officials said Thursday during Sunoco's fiscal third-quarter earnings call.
"Stripes is an outstanding asset," stated Scott Grischow, director of investor relations and treasury. He highlighted the chain's geographic positioning, as well as its operations and execution as its primary strengths.
Stripes' Laredo Taco Company is another strength of the brand, according to Grischow. Not only does its fresh, handmade tacos draw in hungry customers, but the foodservice concept also drives sales of other high-margin items such as beverages.
Sunoco is pursuing aggressive growth in the aftermath of the Susser acquisition. By the end of October, 31 new Stripes stores were open or under construction, with a total of 44 planned to be completed by the end of 2015.
Looking to 2016, the company expects to continue this rate of growth and open 40 or more new Stripes stores, particularly in Houston, central Texas and other key markets.
Q3 Financial Highlights
During Q3 2015, Sunoco posted $27.5 million in net income, a sharp increase from the $1 million it posted during Q3 2014.
The difference was primarily driven by the dropdown acquisitions of Susser; a 31.58-percent interest in the wholesale fuel distribution business of Sunoco LLC and MACS c-stores from affiliate Energy Transfer Partners LP; and the purchases of Aloha Petroleum and Aziz Quick Stop stores.
Adjusted EBITDA for the retail segment was $95.3 million during the quarter, up from $17 million one year ago.
Revenue rose from $1.3 billion in Q3 2014 to $4.5 billion this quarter due to merchandise and retail fuel sales from the Susser, MACS and Aloha c-stores; the wholesale fuel distribution sales from MACS, Aloha and interest in Sunoco LLC on a consolidated basis; and higher rental income.
Merchandise sales totaled $429.9 million during the quarter, compared to $115.1 million one year ago, while retail fuel gallons reached 429.9 million compared to 115 million a year ago.
Houston-based Sunoco LP now operates more than 850 c-stores and gas stations and distributes motor fuel to c-stores, independent dealers, commercial customers and distributors in 30 states.