Susser Holdings Corporation Susser Petroleum Partners LP

Susser Holdings Corporation
Susser Petroleum Partners LP
Barclays Select Growth Conference
November 2013
Safe Harbor
Some of the statements in this presentation constitute “forward-looking statements” about Susser
Holdings Corporation and/or Susser Petroleum Partners that involve risks, uncertainties and assumptions,
including without limitation, our discussion and analysis of our financial condition and results of operations.
These forward-looking statements generally can be identified by use of phrases such as “believe,” “plan,”
“expect,” “anticipate,” “intend,” “forecast” or other similar words or phrases in conjunction with a discussion of
future operating or financial performance. Descriptions of our objectives, goals, targets, plans, strategies, costs,
anticipated capital expenditures, expected cost savings, expansion of our foodservice offerings, potential
acquisitions, and potential new store openings and dealer locations, are also forward-looking statements.
These statements represent our present expectations or beliefs concerning future events and are not
guarantees. Such statements speak only as of the date they are made, and we do not undertake any obligation
to update any forward-looking statement.
We caution that forward-looking statements involve risks and uncertainties and are qualified by
important factors that could cause actual events or results to differ materially from those expressed or implied
in any such forward-looking statements. For a discussion of these factors and other risks and uncertainties,
please refer to our respective filings with the Securities and Exchange Commission (“the SEC”), including those
contained in our Annual Report on Form 10-K for our most recent fiscal year and any subsequent Quarterly
Reports on Form 10-Q, available at the SEC’s website at www.sec.gov. We intend for the forward-looking
statements to be covered by the Safe Harbor provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995, and are including this statement for purpose of complying with these
Safe Harbor provisions.
This presentation is not a prospectus and is not an offer to sell securities. Before you invest, you should
read our filings with the SEC for more complete information about us.
2
Evolution of Our Business – Past and Present
Wholesale Dealer Site
Retail Stripes® Site
3
Combined Susser Footprint
Sac-N-Pac market
4
Susser Holdings LTM EBITDAR
Since IPO in Oct 2006
250
230
210
19% CAGR
170
150
130
110
90
70
Jun-13
Oct-12
Feb-12
Jun-11
Oct-10
Feb-10
Jun-09
Oct-08
Feb-08
Jun-07
50
Oct-06
$Millions
190
5
Current Company Overview
 Retail stores in Texas, Oklahoma and New
Mexico
 576 retail sites
 11th largest company operated C-store
chain in the U.S.
 $1.0 billion of LTM merchandise sales
 1.5 billion gallons distributed (LTM Q3 ‘13)
 571 retail sites with fuel
 >580 contracted wholesale branded sites
 >1,800 unbranded commercial customers
 24 consecutive years of same store sales
growth
 ~ 70% of retail gross profit inside store
 $177 million EBITDA (LTM Q3 ‘13)
6
Same Store Merchandise Sales Increase
9.0
8.0
8.0
7.4
6.7
7.0
Percent Increase
6.0
6.6
5.8
5.6
5.8
5.8
6.0
5.0
5.0
4.2
4.0
3.4
3.3
3.0
2.2
2.0
1.0
-
Qtr1
Qtr2
2011
Qtr3
2012 2013
Qtr4
YTD
7
Average Per Store Fuel Volume Increase
9.0
8.0
8.0
7.2
6.6
Percent Increase
7.0
5.8
6.0
5.5
5.6
5.8
5.6
5.1
4.9
5.0
4.1
4.0
3.6
3.2
3.1
3.0
2.0
1.0
-
Qtr1
Qtr2
2011
Qtr3
2012 2013
Qtr4
YTD
8
Q3 Results Summary
LTM REVENUES > $6 Billion
LTM Merch + Foodservice > $1 Billion
Q3 2012
1,501
Q3 2013
1,600
EBITDA
41.6
49.4
EBITDAR
53.2
61.2
Net Income
6.8
12.9
($ millions)
Total Revenue
9
Highly Attractive, Growing Markets
Long-Term Job Growth (1)
Texas Market
 Texas economy outperforming U.S.
 Ranked #1 for job growth
Michigan
(121, 000)
 Relatively strong housing market
 Lower unemployment than the U.S.
California
(446,000)
 Strongest Texas markets benefiting
from increased oil and gas drilling
Florida
(233,000)
Texas
+ 539,000
 State’s population growth projected to be
one of the highest in the U.S.
 Grew 25% from 2000 - 2012
 26.1 million today
 45.3 million projected in 2040 (2)
(69% increase over 2010)
 Texas named “Best State for Business” for the
Job Gains
Job Losses
Population Change ‘00–‘10 (Top 5 States)
(in millions)
5
4.3
3.4
2.8
3
1.5
1.5
0.5
0
9th consecutive year- CEO Magazine, May 2013
% Growth
Texas
California
Florida
Georgia
North
Carolina
National Avg.
+ 21%
+ 10%
+ 18%
+ 18%
+ 19%
+ 10%
____________________
Source: Unemployment Data: US Department of Labor and economagic.com; Population Data: US Census Bureau and other demographic information.
(1)
Change in Non-Farm Employment by state from June 2008 - June 2013.
(2)
Hobby Center for the Study of Texas, Rice University; assumes net migration equal to 2000-2010.
10
Favorable Market Demographics
Hispanic Population by Market
100%
 High density of rapidly growing
95%
89%
Hispanic population
75%
 Hispanics more frequent c-store
57%
44%
50%
35%
34%
shoppers than non-Hispanics
37%
32%
25%
 More likely to buy grocery foods,
16%
dairy and bread from c-stores
0%
Laredo
Rio
Grande
Valley
Corpus MidlandSan Houston
Christi Odessa Angelo
(2)
Lubbock
Texas
U.S.
 Fresh food important
(1)
 Favorable core demographic, young
Use of C-Stores for Grocery Purchases(3)
population
30%
 54% of TX male pop. < 35
25%
20%
15%
 60% of South TX male pop. <35
27%
23%
10%
5%
19%
18%
13%
7%
6%
5%
13%
7%
11%
2%
0%
Dairy, Ice Cream
Bread
Fresh food
Grocery foods
prepared on site
Non-Hispanics
Hispanics
Perishable
groceries
 ~ 50% of Texas population <18 is
Hispanic
Single-served
pre-packaged
food
____________________
Source: U.S. Census Bureau, 2009 estimates.
(1)
Store base includes Brownsville, Harlingen, McAllen, Falfurrias and Riviera markets. Demographic data for Brownsville-Harlingen and McAllen-Edinburg-Mission MSA’s.
(2)
Demographic data for Houston-Sugar Land-Baytown MSA.
(3)
“The C-Store Hispanic Shopper study, by The NPD Group.
11
2012-2013 Milestones

Successful completion of SUSP IPO




Private Equity Sponsor exit



Raised net $206 million
Sets market value for stable cash flow fuel distribution business
Lowers cost of capital to help accelerate growth
Received ~2.5X investment after 6.5 years - $36/share
Increased float/liquidity in SUSS stock
Redeemed $425mm debt with cash and revolver


$500mm new revolver, LIBOR+200
Est. annual pre-tax interest savings $30 - $32mm (based on current
rates)
12
Delivering Organic Growth
2012
2013
6.6%
est 3% - 4%
New Stripes® Stores
25
28-30 total
(20 YTD)
New Wholesale Contracted
Dealer Sites
39
32-40 total
(24 YTD)
~800
~1,000
Same Store Merchandise
Sales Growth
New Jobs Created
13
Delivering Growth through Acquisitions

Acquired Gainesville Fuel, Inc. in September 2013
60 million diesel gallons annual volume
Customers are oil & gas producers in North Texas and Oklahoma
 2014 expected accretion:


SUSP: $0.05 to $0.10 distributable cash flow per unit
 SUSS: $0.03 to $0.07 earnings per share


Definitive agreement to acquire assets and fuel distribution
contracts from Sac-N-Pac Stores and 3W Warren Fuels





47 convenience stores in south central Texas
Fuel supply to 20 independent dealer locations
7 tracts of land
65 million gallons combined annual fuel volume
Anticipating closing in Q1 2014
14
2013 Retail Growth
Spring – 6,844 sq. ft.
Carrizo Springs– 6,844 sq. ft.
Del Rio – 6,844 sq. ft.
Plus Lube Center
Rosenburg– 6,844 sq. ft.
Karnes City – 6,844 sq. ft.
Plus Truck Diesel Island
New Retail Store Growth
2009
2010
2011
2012
2013 E
15
14
19
25
28-30
15
New Stores Delivering ~ 20% Unlevered ROI
New Store Returns
Unlevered ROI
30%
Levered ROI
80%
75%
26%
25%
22%
60%
20%
15%
38%
40%
10%
7%
20%
5%
7%
0%
12-24 (21)
25-36 (20)
Months Open (# Stores)
>36 (107)
0%
12-24 (21)
25-36 (20)
>36 (107)
Months Open (# Stores)
Unlevered ROI = Store incremental cash flow before rent / Total initial store investment
Levered ROI = Store incremental cash flow after rent / Net store investment (after sale/leasebacks)
Data reflects 2013 Q3 LTM
16
Wholesale Segment Overview
 Leading non-refining motor fuel distributor
in Texas
1.5 Billion Gallons Sold LTM
 ~576 Stripes® stores with fuel
 ~100 contracted consignment locations
 ~490 contracted branded dealers
Commercial
13%
 ~ 1,850 unbranded commercial customers
 Scalable wholesale and retail platforms
 Highly complementary with retail division
Dealer Supply
19%
 Increases purchasing power/diversification
Stripes
59%
 Increases strategic flexibility to rationalize sites
between retail and wholesale
 Enhances acquisition opportunities
 4 acquisitions completed since Aug ‘09
Dealer
Consignment
9%
17
2013 Wholesale Growth
Zippy’s
Food
Mart
Zippy’s
Food
Mart
Killeen,
TX
Killeen, TX
Amigo Mart #2
Houston, TX
Fresh Start #1
Porter, TX
Edge Mart
Katy, TX
One Stop Bucker
Dallas, TX
New Wholesale Growth
2009
2010
2011
2012
2013 E
27
20
21
39
32-40
18
FMV for Wholesale Segment: SUSP IPO
 Successfully executed public offering of wholesale distribution business in
September 2012
 Establishes FMV of wholesale distribution business tied to our stable cash
flow (~$720 million as of 11/14/13 @ $32.79/unit)
 Creates strategic vehicle for growth
 Improves cost of capital
 SUSS retains ~50% of SUSP, 100% of general partner; will continue to
consolidate financial results
19
SUSP - Multiple Drivers of Growth
 Rapid Stripes motor fuel volume growth
Dropdown and
Organic Growth
Through
Relationship with
SUSS
Expand Third-Party
Wholesale Motor
Fuel Distribution
Business

Existing locations

New locations
 Significant sale/leaseback opportunities with 75 store option

Rental income

Built-in distributable cash flow growth at the MLP’s option
 Organically adding new third-party dealers
 Adding new unbranded convenience stores and other
commercial customers
 Pursue acquisitions of other wholesalers and supply contracts
Acquisitions
 Leverage relationships with suppliers to improve deal flow
 Joint strategic acquisition opportunities with SUSS
SUSP has ~$97 million of capacity under its revolver to capture growth opportunities as of 9/30/13;
$250 revolver can be expanded by $100 million
20
SUSP History of Distributions
QTR Ended
Sep 2012 (6 days)
Dec 2012
Mar 2013
Jun 2013
Sep 2013
Distribution per Annualized
LP Unit
Rate
$
0.0285 $
1.75
$
0.4375 $
1.75
$
0.4375 $
1.75
$
0.4528 $
1.81
$
0.4687 $
1.87
21
Incentive Distribution Rights (IDR’s)
Hypothetical Example
Hypothetical Annual Distribution (000's)
(a)
Hypothetical Total Distribution
Hypothetical # Units outstanding
Annual LP Dist.
% Allocated to
(b)
per Unit Up To
LP Unitholders
$1.750
100%
$2.013
100%
$2.188
85%
$2.625
75%
>$2.625
50%
Total LP Distribution
Annual LP Dist.
% Allocated to
(b)
per Unit Up To
LP Unitholders
$1.750
0%
$2.013
0%
$2.188
15%
$2.625
25%
>$2.625
50%
Total IDR Distribution
Total Distribution, including IDR's
$
40,000 $
20,000
50,000 $
20,000
60,000 $
20,000
70,000
20,000
$
35,000 $
5,000
40,000 $
35,000 $
5,250
2,975
4,688
47,913 $
35,000 $
5,250
2,975
6,563
3,750
53,538 $
35,000
5,250
2,975
6,563
8,750
58,538
$
$
525
1,563
2,088 $
$
525
2,188
3,750
6,463 $
525
2,188
8,750
11,463
40,000 $
50,000 $
60,000 $
70,000
$
$
$
$
-
$
Notes:
(a) SUSP actual LTM distribution was $39.3 million.
(b)
Annualized incremental quarterly distribution tiers per SUSP partnership agreement.
22
MLP Structure Enhances Synergies of our
Retail/Wholesale Platform
SUSP
• Combined fuel volume increases
purchasing power
• SUSS gallon growth increases SUSP
DCF
SUSS
• MLP currency funds Stripes store
growth
• Rent payments increase SUSP DCF
• DCF growth = LP distribution growth
• SUSS receives pro rata share
• LP distribution growth trigger IDR’s
• SUSS receives 100%
23
Key Investment Highlights – SUSP
STABILITY

Long-term, fee-based contracts
VISIBLE GROWTH

Embedded growth with Parent
 75 Stripes® store dropdown option (30
 10-year fixed fee contract with the
completed since IPO, incl. 22 in 2013)
Parent
 25-30 currently expected in 2013
 History of strong growth in Stripes
 5-year average remaining term
gallons (13.3% CAGR in last 5 years)
contracts with diversified 3rd parties

De minimis direct commodity risk

Very limited working capital needs

Strong and resilient industry fundamentals

More than 190 net new third-party locations
after 2007

Numerous acquisition opportunities in highly
fragmented and attractive markets
 Ability to pursue opportunities jointly


Traditional MLP structure with
conservative coverage
Significant financial capacity for growth at
both MLP and Parent
24
Consolidated Financial Strength and Flexibility
Provides Opportunity for Growth
Reducing Leverage
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
-
Net Debt to
Adjusted EBITDA
 $206mm net proceeds from SUSP IPO
Sept. 2012
 $73mm consolidated cash and
12/07(1)
12/08
12/09
12/10
12/11
12/12
09/13
marketable securities; $411mm
available on SUSS/ SUSP revolvers at
September ’13
(1) Pro forma for acquisition of Town & Country (168 retail sites)
Increasing Liquidity
$600
 Net debt to EBITDA of 1.7X at 9/29/13
 $425mm 8.5% debt redeemed 5/15/13
$500
 Financed with ~$233mm of new SUSS
$400
$500mm revolver and cash
$300
 Expect $30-$32mm annual pre-tax
$200
interest savings, or $0.90-$0.95 diluted
EPS improvement
$100
$0
12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 09/13
Cash
Additional Liquidity (1)
(1)
Unused availability on revolving credit facilities
25
Key Investment Highlights

Strong and resilient industry fundamentals

Leading market position in highly attractive
markets

Synergistic, scalable business model delivering
strong growth on retail and wholesale
platforms

Differentiated retail strategy

Innovative information systems and technology

Strong liquidity and operating performance

Attractive growth opportunities in core markets

Experienced team passionately committed to
delivering strong growth and performance

Proven ability to access capital
26
Helping communities grow and thrive for over 75 years…
27
Appendix
Proven Track Record of Growth
 3rd generation family led fuel
business dating back to 1930s
 Sam L. Susser joined the
Company in 1988 when the
Company operated five stores
Locations
1200
1000
891
800
600
420
400
 Completed 14 significant
acquisitions in last 24 years
625
640
637
639
665
692
291
334
332
333
346
367
334
306
305
306
319
325
2001
2002
2003
2004
2005
2006
238
200
0
182
2000
 Transitioned to a large-format
store model in 1999 / Created
Laredo Taco Company® restaurant
concept in 2001
 Completed SUSS initial public
offering on October 24, 2006
 Completed SUSP initial public
offering on September 25, 2012
 SUSS EBITDA up > 3x since IPO
and increased retail stores by 65%
Retail
884
915
957
1106
1138
1163
565
579
587
387
372
390
431
504
512
525
526
541
559
576
2007
2008
2009
2010
2011
2012
Q3
2013
$229
$225
12
LTM
Q3'13
Third-Party Dealers & Consignment
Adjusted EBITDAR
($ in millions)
$260
$240
$220
$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
$-
$213
$145
$26
'00
$37
'01
$51
$51
$59
'02
'03
'04
$64
$68
'05
'06
$163
$129
$84
'07
'08
'09
'10
'11
29
EBITDAR Has Tripled Since 2006 IPO
Fuel Neutral EBITDAR
EBITDAR
5%
(in millions)
$240
+8%
(1)
(in millions)
$225
+9%
+31%
-1%
+11%
$200
$200
+8%
$175
+7%
+26%
$160
+54%
$150
+73%
-11%
$229
$213
$120
$215
$225
$215
$213 $210
2006 2007 2008 2009 2010 2011 2012
Q3 12 Q3 13
LTM LTM
$125
$197
$177
$163
+17%
$100
$153
$164
+24% $145
$129
$80
$75
$84
$99
$85
$68
$50
$40
2006 2007 2008 2009 2010 2011 2012
Q3 12 Q3 13
LTM LTM
(1) Normalizes retail CPG after credit cards at a 5-year rolling average of 14.7¢ and
wholesale CPG at a 5-year rolling average of 5.5¢. Excludes G&A bonus and 401-K
match. Adjusted to reflect impact of MLP on retail fuel margin
30
Susser Holdings EBITDAR
Three Months Ended Sept
2013
70
Nine Months Ended Sept 2013
180
175
61
172
170
60
167
53
165
50
160
40
155
30
150
20
145
10
140
2012
2013
2012
2013
931
Key Financial Results
Fiscal Year
2011 2012
Q3 YTD
2012 2013
Merchandise Same Store Sales Growth
6.0%
6.6%
5.8%
3.4%
Merchandise Margin, Net of Shortages
33.7%
33.9%
33.8%
33.8%
Retail Average Per-Store Gallons Growth
4.9%
5.8%
6.6%
5.6%
Retail Fuel Margin (CPG) As Reported (1)
23.2¢
21.8¢
22.0¢
17.7¢
Retail Fuel Margin, Pro Forma for MLP
20.2¢
19.6¢
19.0¢
17.7¢
Wholesale Fuel Margin - 3rd Party (CPG)
5.9¢
6.2¢
6.1¢
7.8¢
Wholesale Fuel Margin - Affiliated (2)
0.0¢
0.8¢
0.2¢
3.0¢
3.0¢
3.0¢
3.0¢
3.0¢
Gross Profit
$557
$611
$455
$487
LTM Adjusted EBITDA
$167
$183
$169
$177
Wholesale Fuel Margin, Pro Forma for MLP
(1) $0.03 per gallon profit markup charged to Retail by SUSP implemented 9/25/12. This change shifts approximately 3 cents per gallon of gross profit from the retail segment to the
wholesale segment. The Pro Forma amounts reflect the historical retail margins as if the markup had been implemented for the entire period presented.
(2) Beginning September 25, 2013 the Wholesale segment charges the Retail segment approximately 3 cent mark-up. Prior to this date no markup was charged. Amount shown for
FY 2012 is full year blended margin.
32
Real Estate Summary
As of September 30, 2013
Operating:
Retail
Wholesale- SPC
Wholesale- SUSP
Controlled by
Fee Leased Franchisee Total Sites
261
315
576
10
26
36
76
12
493
581
Stripes stores owned by SUSP (1)
Total Operating Sites
347
Non-Operating:
Office / Warehouse
Under Construction
Land Bank / In Development
Income Producing
Surplus
Total
13
9
53
6
45
126
Total:
473
(30)
323
8
1
3
2
14
337
493
493
(30)
1,163
21
10
53
9
47
140
1,303
(1) Intercompany elimination of Stripes stores dropped down to SUSP since IPO through 9/30/13; these are reflected as “leased” by Retail
and “fee” by SUSP.
33
Retail Segment Overview
 576 retail sites (~46% fee properties)
Retail Segment Gross Profit Contribution (1)
 Superior real estate and facilities
Fuel
 Strategy to drive customer count and
transaction size
Non-Fuel
32%
68%
 C-stores operate under powerful
proprietary Stripes® brand
 62% have proprietary Laredo Taco
Company® restaurants
 Focus on higher margin food and
beverage with less reliance on cigarettes
and fuel
____________________
(1) Reflects LTM results as of Q3 2013
34
Retail EBITDAR
($millions)
Three Months Ended Sept 2013
55
Nine Months Ended Sept 2013
145
140
50
45
45
40
134
135
130
127
125
40
120
115
110
35
105
30
100
2012
Personnel expense
Oth Op ex Credit Cards
2013
% of Merch Sales
Impact on
2012
2013
EBITDA
18.4%
19.2% $
(2.2)
11.3%
11.2% $
0.2
2012
Personnel expense
Oth Op ex Credit Cards
2013
% of Merch Sales
Impact on
2012
2013
EBITDA
18.2%
19.4% $
(9.3)
11.1%
11.3% $
(1.8)
(a) 2012 reflects pro forma results as if MLP had been in place.
35
Retail Gross Profit
Three Months Ended Sept 2013
160
140
Nine Months Ended Sept 2013
450
$148
$132
400
17.1¢
80
60
20
300
$ millions
$ millions
18.3¢
40
$422
19.0¢
20.0¢
17.7¢
17.3¢
33.4%
33.4%
350
120
100
$396
33.5%
33.4%
33.8%
33.9%
-
250
200
150
100
50
33.5%
33.3%
2012 (a)
Merch GP
2013
Fuel GP
Other GP
2012 (a)
Merch GP
2013
Fuel GP
Other GP
(a) 2012 reflects pro forma results as if MLP had been in place.
36
Growing the Top Line
Average Merchandise Sales per Store
(thousands)
Key Drivers
$2,000
$1,900
$1,864
$1,792
$1,800
• New store development
$1,700
$1,661
$1,600
• Aggressive category
$1,540
+4%
$1,488
$1,500
• Leveraging restaurant sales
+8%
+3%
$1,271
$1,300
• Investing capex to maintain
+4%
quality of existing stores
+13%
$1,142
• Building suggestive selling
+11%
$1,100
+8%
capabilities
$1,000
2006
management
+8%
$1,437
$1,400
$1,200
• Favorable demographics
2007
2008
2009
2010
2011
2012
Q3 13
LTM
37
Proprietary Restaurant Service Differentiates Susser
 371 locations with a restaurant concept
 357 Laredo Taco Company® locations
 Authentic Mexican food catering to
both Hispanic and non-Hispanic
customers
 Wide variety of delicious, spicy food
at a great value
 Foodservice drives higher-than-average
gross margins
 Additional merchandise purchases in
~73% of transactions
 Laredo Taco Company® customers visit
stores 40% more often
38
Built Capability to Execute Our Fuel Strategy
(thousands)
Average Fuel Gallons Sold per Retail Store
1,700
1,639
1,578
1,600
 Utilizing technology to
optimize volume and margin
over the long term
1,491
1,500
1,421
1,388
1,400
1,355
1,319
+5%
1,300
1,243
1,200
+6%
+3%
+2%
Initiatives
+6%
+4%
 New stores built for volume
 Investment - new fuel
+2%
dispensers
+5%
 Expansion of diesel
1,100
 Leverage scale/procurement
1,000
2006
2007
2008
2009
2010
2011
2012
Q3 13
LTM
# Locations w/
Auto Diesel 173
197
316
337
360
380
419
450
18-Wheel
29
56
57
61
68
70
73
27
39
Recent Operating Trends
Merchandise Same Store Sales Growth
8.0%
7.4%
7.3%
6.7%
5.8%
5.6%
5.8%
5.8%
5.0%
4.2%
2.5%
Q1 '10
3.1%
3.4%
3.4%
2.2%
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
Q2 '13
Q3 '13
Average Retail Gallons per Store Growth
8.0%
7.2%
3.9%
6.6%
5.8%
5.6%
4.3%
3.2%
3.6%
Q1 '11
Q2 '11
5.5%
5.6%
Q2 '13
Q3 '13
4.1%
3.1%
1.8%
-0.2%
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
40
Widening the Gap
(in 000’s, based on LTM data)
Average Per-Store Merchandise Sales
$1,863
$1,792
$1,800
$1,661
$1,540
$1,488
$1,500
$1,437
$1,270
$1,230
$1,217
$1,200
$1,142
$1,055
$978
$954
$900
$1,134
$1,127
$1,088
$1,070
$999
$1,015
$1,001
$991
$912
$898
$1,223
$1,172
$928
$958
2008
2009
$1,230
$1,191
$1,150
$1,075
$1,063
$1,015
$856
$778
$742
$600
$300
2005
2006
2007
SUSS
PTRY
CASY
2010
2011
2012
2013 Q3
LTM
CST
Note: Annual data based on each company’s fiscal year. LTM data based on latest fiscal quarter reported.
41
Delivering Best in Class Volume Growth
(in 000’s, based on LTM data)
Average Per-Store Gallons
1,856
1,820
1,800
1,825
1,817
1,855
1,847
1,819
1,830
1,763
1,639
1,578
1,600
1,491
1,421
1,388
1,400
1,355
1,319
1,306
1,289
1,269
1,243 1,230
1,200
1,255
1,186
1,152
1,117
1,114
1,108
1,000
806
821
859
836
854
869
869
888
896
800
600
2005
2006
2007
2008
SUSS
PTRY
2009
CASY
2010
2011
2012
2013 Q3
LTM
CST
Note: Annual data based on each company’s fiscal year. LTM data based on latest fiscal quarter reported.
42
Growing Merchandise Gross Profit Dollars
Merchandise Margin %
38%
 Store-specific pricing
36%
36.8%
35.7%
34%
Key Drivers
36.0%
36.2%
36.3%
36.3%
 Leveraging scale
35.6%
 Aggressive category
management
32%
 Capital invested in revenue34.3%
30%
33.3%
32.5%
33.6%
33.7%
33.9%
33.8%
generating equipment
 Driving the business through
28%
foodservice
26%
2007
2008
2009
2010
2011
2012
Q3 13
LTM
Merchandise Margin Including Other Income
Reported Merchandise Margin
43
Leveraging Hot, Fresh & Delicious
$220
Foodservice Sales
It’s All About the Food
$200
$millions
$180
$160
$140
$233
$210
$120
$188
$100
$148
$158
$166
2008
2009
2010
$80
$60
$40
$58
$71
2005
2006
100
2007
2011
2012
2013
Q3 LTM
Number of LTC Food Units
Sold Annually
80
Millions of Units
$88
60
107
40
62
20
23
31
68
75
86
95
39
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
Q3 LTM
*Foodservice sales include restaurant (QSR), fast food, roller grill, coffee, fountain, and Slush Monkey ™ (frozen carbonated beverage).
44
Growing Merchandise Sales per Square Foot
Store Sq. Ft. Distribution
 New stores deliver strong returns
 Typical cost is currently $3.0 - $4.0 million
 Target ROI of approximately 20% by year 3
 New stores are 2x the size and 3x the cash flow of
legacy stores
Merchandise Sales per Sq. Ft.
Sq. Ft. Range
<2500
2500-3500
3501-4500
>4500
Total @ 9/30/13
Store Count
143
162
83
188
576
Average Building and Land Sq. Ft. per Retail Store
$540
3,800
55,000
3,600
50,000
$520
Building Sq Ft
$480
$460
$440
$420
$400
$380
45,000
3,400
Land Sq Ft
$500
40,000
3,200
35,000
3,000
30,000
2,800
25,000
2,600
20,000
$360
$340
2005 2006 2007 2008 2009 2010 2011 2012 Q3 13
LTM
Average Building Sq Ft
Average Land Sq Ft
45
Existing Stores Continue to Grow
144 Stores Opened Prior to 2000
(in millions)
Merchandise Sales
Merchandise Gross Profit
$200
$65
$60
$180
$55
$160
$50
$140
$45
$120
2005
2006
2007
2008
2009
2010
2011
2012
$40
2005
2006
Fuel Gallons
2007
2008
2009
2010
2011
2012
2010
2011
2012
4-Wall Cash Flow
$45
135
$40
130
$35
125
$30
120
$25
115
$20
2005
2006
2007
2008
2009
2010
2011
2012
2005
2006
2007
2008
2009
46
New Retail Stores Driving Cash Flow Growth
Legacy Stores
(Prior to 2000)
Town &
Country
Stores
Acquired
Stores
Built(2)
All Stores
# of Stores (1)
144
154
146
559
Avg. Building Sq. Ft.
2.6K
3.5K
5.2K
3.6K
Avg. Lot Sq. Ft.
21K
50-60K
50-100K
50K
Avg. Annual Merch Sales
(000’s)
$1,344
$1,911
$2,466
$1,792
Avg. Annual Fuel Gallons
(000’s)
914
1,683
2,358
1,578
Avg. Annual Cash Flow
(000’s)
$289
$474
$633
$440
(1) All store counts are as of 12/30/12
(2) Reflects stores built from 2000 to December 30, 2012 (FY2012 results). Results annualized for stores open < 12 months.
47
Post-MLP Organization Structure
Susser Holdings Corporation and
subsidiaries (“Parent”)
100% Ownership
Interest
Susser Petroleum Partners
GP LLC
(the “general partner”)
Common Units
Subordinated Units
Incentive Distribution Rights
(NASDAQ: SUSS)
Common Units
49.8%
Limited Partner
Interest
 Retail operations
 Stripes® c-stores
 Sale of motor fuel at
consignment locations
 Owned properties for ~250
Stripes® locations (2)
50.2%
Limited Partner
Interest
0% Non-economic
General Partner
Interest
Public Unitholders
What Remains at the
Parent?
What is in SUSP?
Susser Petroleum
Partners LP
(the “Partnership”)
(NYSE: SUSP)
100% Ownership
Interest
 Wholesale operations
 Motor fuel distribution to Stripes® c-stores
 Motor fuel distribution to the Parent for
supplying consignment locations
 Motor fuel distribution to supply dealers
 Motor fuel distribution to unbranded cstores and other commercial customers
 41 owned stores and 12 leased sites leased
/ sublet to independent operators (2)
Operating Subsidiaries (1)
____________________
(1)
One of Susser Petroleum Partners LP’s operating subsidiaries, Susser Petroleum Property Company LLC (‘‘Susser Propco’’), will be treated as a corporation for U.S. federal income tax purposes. Susser Petroleum Partners LP
expects that this subsidiary will own all Stripes® convenience stores purchased from SHC in connection with Susser Petroleum Partners LP’s option to execute sale and leaseback transactions under the omnibus agreement or
otherwise.
(2)
At time of SUSP IPO. Excludes any subsequent sites added or closed.
48
Wholesale Gross Profit
Three Months Ended Sept 2013
Nine Months Ended Sept 2013
30
70
$66
$25
60
25
$19
$56
50
15
6.1¢
7.8¢
$ millions
$ millions
20
40
30
20.0¢
6.1¢
17.3¢
6.8¢
10
20
5
33.8%
3.0¢
33.9%
3.0¢
-
10
33.5%
3.0¢
3.0¢
33.3%
0
Fuel GP - Stripes
Stripes
3rd Party
Total
0
Fuel GP - 3rd Pty
2012 (a)
Other GP
Gallons Growth
2012
2013
% Change
218
239
10%
150
162
8%
367
401
9%
Fuel GP - Stripes
Stripes
3rd Party
Total
2013
Fuel GP - 3rd Pty
Other GP
Gallons Growth
2012
2013
% Change
643
693
8%
445
465
4%
1,088
1,157
6%
(a) 2012 reflects pro forma results as if MLP had been in place.
749
Wholesale EBITDAR
Three Months Ended Sept 2013
20
19
Nine Months Ended Sept 2013
19
48
18
46
17
44
16
49
50
44
42
15
15
40
14
38
13
36
12
34
11
32
10
30
2012
2013
2012
2013
(a) 2012 reflects pro forma results as if MLP had been in place.
850
Our Strong, Long-Term Fuel Supplier Relationships
Key Brands
Overview
 Valuable supply contracts with major oil
companies and refiners
 More than 20 branded and unbranded
suppliers
2012 Volumes by Supplier
 Long-term relationships with suppliers
provides attractive terms and ability to
grow
Others
44%
Valero
36%
Chevron
19%
 Among the largest U.S. branded
distributors of Valero and Chevron motor
fuel
51
SUSP: Stable & Growing Operating and Financial Performance
Gallons Sold (1)
1,600
1,448
1,202
1,517
1,312
1,233
$60
1,200
($ in millions)
Gallons (millions)
Fuel Gross Profit (1)
800
400
$50.2
$51.4
2012
LTM Q3'13
$44.5
$45
$35.1
$39.1
$30
$15
$0
0
2009
2010
2011
Third-Party
2012
2009
LTM Q3'13
Total
2010
2011
Stripes & Consignment Locations
Third-Party
Cents Per Gallon – Motor Fuel Margin (1)
LTM Q3’13
2009
2010
2011
2012
3.0
3.0
3.0
3.0
3.0
Third-Party
2.7
3.5
4.2
4.4
4.9
Average Fuel Margin:
2.9
3.2
3.4
3.5
3.6
Stripes® & Consignment
(2)
____________________
(1)
Pro forma for the Parent distribution contract and application of this contract to Stripes & consignment volumes for all historic periods shown prior to IPO. Actual results following IPO.
(2)
Represents supply dealers and other commercial customers.
52
Retail Quarterly Volatility Consistent on LTM Basis,
Wholesale Margins Even More Stable
Quarterly Fuel Margin – Cents per Gallon (1)
35.0¢
30.0¢
5 year:
27.7
24.8
25.0¢
20.0¢
32.4
31.2
24.1
22.8
19.7
15.2
15.0¢
15.0
11.9
11.8
20.1
18.6
17.7
15.3
19.6
21.2
21.3
Low = 11.1¢ 11.1¢
13.3
11.1
10.0¢
5.0¢
0.0¢
Q4
'08
Q1
'09
Q2
'09
Q3
'09
Q4
'09
Q1
'10
Q2
'10
Q3
'10
Q4
'10
Q1
'11
Q2
'11
MLP Impact
8.0¢
7.2
7.0
7.0¢
5.8
6.0¢
4.0¢
3.5
Q4
'11
Q1
'12
Retail PF
Q2
'12
Q3
'12
Q4
'12
Q1
'13
6.4
5.1
5.1
Avg = 19.1¢
19.8¢
LTM = 18.5¢
21.5¢
Q3
'13
6.3
6.4
5 year:
5.0
Low = 3.5¢
4.2
4.0
32.4¢
7.8
7.2
6.5
5.9
5.1
Q2
'13
High = 32.4¢
LTM
5.9
5.1
5.0¢
Q3
'11
Pro
Actual Forma
3.7
High = 7.8¢
3.0¢
2.0¢
Avg = 5.7¢
1.0¢
LTM = 6.6¢
0.0¢
Q4
'08
Q1
'09
Q2
'09
Q3
'09
Q4
'09
Q1
'10
Q2
'10
Q3
'10
Q4
'10
Q1
'11
Q2
'11
Q3
'11
Q4
'11
Wholesale Third Party
(1)
Q1
'12
Q2
'12
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
LTM
Reflects historic fuel margins by segment, as reported, prior to SUSP IPO. Effective 9/25/12, retail fuel margin reduced by ~3 CPG for profit mark-up charged by SUSP.
Retail pro forma includes the add back of the 3 cent profit margin now reported in wholesale gross profit.
53
Retail Fuel Margin
(cents per gallon)
25¢
23.2
-
22.6 PF
21.8 Rpt
22.6
0.8
5.5
20¢
18.4
17.8
15¢
14.8
13.7
-
2.7
4.2
14.6
scale/procurement
3.0
4.3
5.6
 Building facilities
designed for volume
3.5
 Shift in product mix –
10¢
16.3
5¢
 Leverage
-
2.9
10.8
Key Drivers
5.5
-
-
21.5 PF
18.5
21.5 Rpt
12.1
13.6
11.1
14.1
higher margin in diesel
12.9
17.7
 Consistent execution
 Availability of information
0¢
2006
2007
2008
Credit Card Fee CPG
2009
2010
2011
MLP Impact on CPG
2012
Q3 13
LTM
PF CPG
Note: Effective 9/25/12, retail fuel margin reduced by ~3 CPG for profit mark-up charged by SUSP. The Pro Forma
margins shown above reflect the add back of the 3 cent margin that is now reported in wholesale gross profit.
54
Fuel Margin History
2006
2007
2008
2009
2010
2011
2012 (1)
2013 (1)
Retail Fuel Margin
As Reported
Q1
Q2
Q3
9.3
15.4
21.1
12.0
17.3
15.9
12.0
19.5
22.3
11.8
15.2
19.7
11.1
24.8
22.8
15.3
31.2
27.7
13.3
32.4
20.1
16.6
18.2
18.3
Q4
9.2
14.1
17.7
11.9
15.0
18.6
21.1
-
YTD
13.7
14.8
17.8
14.6
18.4
23.2
21.8
17.7
High*
Low*
Average*
15.3
9.3
12.1
32.4
15.2
22.2
27.7
15.9
21.4
21.1
9.2
15.4
23.2
13.7
17.8
High*
Low*
Average*
10.3
6.6
8.4
26.8
11.5
18.0
21.9
13.4
17.0
15.6
7.5
11.5
17.7
10.8
13.7
Median*
12.0
19.5
21.1
15.0
17.8
Median*
8.1
15.2
17.1
11.0
13.6
2006
2007
2008
2009
2010
2011
2012
2013
Retail Fuel Margin
Pro Forma (2)
Q1
Q2
Q3
6.3
12.4
18.1
9.0
14.3
12.9
9.0
16.5
19.3
8.8
12.2
16.7
8.1
21.8
19.8
12.3
28.2
24.7
10.3
29.4
17.1
16.6
18.2
18.3
Q4
6.2
11.1
14.7
8.9
12.0
15.6
21.1
-
YTD
10.7
11.8
14.8
11.6
15.4
20.2
19.6
17.7
High*
Low*
Average*
12.3
6.3
9.1
29.4
12.2
19.2
24.7
12.9
18.4
21.1
6.2
12.8
20.2
10.7
14.9
High*
Low*
Average*
7.3
3.6
5.4
23.8
8.5
15.0
18.9
10.4
14.0
12.6
4.5
8.5
14.7
7.8
10.8
Median*
9.0
16.5
18.1
12.0
14.8
Median*
5.1
12.2
14.1
8.0
10.6
2006
2007
2008
2009
2010
2011
2012
2013
2006
2007
2008
2009
2010
2011
2012
2013
Retail Fuel Margin, net of Credit Cards
As Reported
Q1
Q2
Q3
Q4
6.6
12.0
17.5
7.5
9.6
14.8
13.4
11.0
8.1
15.2
17.1
14.2
9.1
11.5
15.8
8.2
7.0
20.2
18.5
10.4
10.3
25.3
21.9
13.3
7.9
26.8
14.5
15.6
11.0
12.7
12.6
-
Retail Fuel Margin, net of Credit Cards
Pro Forma (2)
Q1
Q2
Q3
Q4
3.6
9.0
14.5
4.5
6.6
11.8
10.4
8.0
5.1
12.2
14.1
11.2
6.1
8.5
12.8
5.2
4.0
17.2
15.5
7.4
7.3
22.3
18.9
10.3
4.9
23.8
11.5
12.6
11.0
12.7
12.6
-
YTD
10.8
12.1
13.6
11.1
14.1
17.7
16.3
12.1
YTD
7.8
9.1
10.6
8.1
11.1
14.7
14.1
12.1
* Includes full years only
Note: We report Retail fuel margins before credit card expenses, which are included in other operating expense. Our Wholesale segment absorbs certain credit card expenses, which are
included in the reported fuel margin.
(1) Effective September 25, 2012, the retail fuel margin reflects a reduction of approximately three cents per gallon as SUSP began charging a gross profit mark-up on gallons sold to our retail
segment. Prior to this date, no gross profit mark-up was charged by the wholesale segment to the retail segment.
(2) The retail fuel margin reflects a pro forma reduction of approximately three center per gallon mark-up from SUSP for all periods presented.
55
Fuel Margin History
Wholesale Third Party Fuel Margin (3)
Q1
Q2
Q3
Q4
Total Consolidated Fuel Margin
YTD
2006
2007
2008
2009
2010
2011
2012
2013
4.8
3.9
4.9
3.5
4.2
5.1
5.0
5.9
5.9
5.3
6.0
4.0
5.8
7.0
7.2
6.4
6.9
6.4
7.3
5.1
5.9
6.5
6.1
7.8
4.8
6.4
7.2
3.7
5.1
5.1
6.3
-
5.6
5.5
6.4
4.1
5.3
5.9
6.2
6.2
High*
Low*
Average*
5.1
3.5
4.5
7.2
4.0
5.9
7.3
5.1
6.3
7.2
3.7
5.5
6.4
4.1
5.6
Median*
4.8
5.9
6.4
5.1
5.6
Total Consolidated Fuel Margin, net of Credit Cards
Q1
Q2
Q3
Q4
YTD
2006
2007
2008
2009
2010
2011
2012
2013
7.0
7.7
9.1
8.4
8.4
11.4
10.0
14.3
10.3
11.0
13.7
10.5
17.0
21.6
21.9
15.5
13.4
10.9
15.9
13.6
16.1
19.3
14.9
16.1
6.9
10.6
13.4
8.7
11.0
13.0
16.9
-
9.4
10.1
13.0
10.3
13.1
16.3
16.0
15.3
2006
2007
2008
2009
2010
2011
2012
2013
High*
Low*
Average*
11.4
7.0
8.9
21.9
10.3
15.2
19.3
10.9
14.9
16.9
6.9
11.5
16.3
9.4
12.6
Median*
8.4
13.7
14.9
11.0
13.0
Q1
Q2
Q3
Q4
5.7
6.6
6.8
6.8
5.9
8.3
6.7
11.0
8.7
9.8
11.2
8.4
14.3
18.1
18.6
12.2
11.8
9.7
12.9
11.3
13.5
15.8
11.6
12.7
6.0
8.9
11.3
6.4
8.2
9.9
13.7
-
YTD
8.1
8.8
10.6
8.2
10.5
13.0
12.7
12.0
High*
Low*
Average*
8.3
5.7
6.7
18.6
8.4
12.7
15.8
9.7
12.4
13.7
9.2
13.0
8.1
10.3
Median*
6.7
11.2
11.8
8.9
10.5
* Includes full years only
Note: We report Retail fuel margins before credit card expenses, which are included in other operating expense. Our Wholesale segment absorbs certain credit card expenses, which are
included in the reported fuel margin.
(3) The wholesale margin from third parties excludes gross profit from the retail segment.
56
Tracking the Texas Economy
Key Economic Indicators
Yearly Totals
Year
Median
Sales Price
Value of
Active
Gasoline
Diesel
Existing
Auto
Crude Oil Natural Gas Oil & Gas (Millions of (Millions of
Single
Sales Net Packages
Produced Produced Drilling
Taxed
Taxed
Family
Value
Taxed
(Millions) (Millions)
Rigs
Gallons)
Gallons)
Homes
(Millions) (Millions)
2006
2007
2008
2009
2010
2011
2012
$ 19,657.50
$ 21,622.10
$ 30,631.30
$ 18,363.90
$ 26,054.90
$ 39,406.00
$ 54,825.20
$
$
$
$
$
$
$
19,852.10
18,858.50
23,258.80
9,317.40
11,482.50
13,485.60
12,713.10
746
613
640
396
670
849
912
11,372.80
11,624.80
11,709.70
11,916.30
12,141.80
11,948.40
12,261.50
3,731.60
3,886.90
3,854.00
3,475.80
3,698.10
3,835.20
3,963.40
$
$
$
$
$
$
$
143,100
146,450
145,850
143,750
146,750
147,800
158,600
$45,756.20
$48,992.80
$44,442.40
$34,792.60
$38,797.50
$44,235.20
$52,866.30
1,280.2
1,004.9
1,077.0
949.9
951.2
951.7
958.2
Note: The cigarette packages taxed number was previously based on cigarette tax collections. The cigarette packages taxed number is now based on the number of cigarette tax stamps sold. All historical cigarette package taxed
numbers have been revised to reflect this new method.
Crude oil and natural gas figures are net taxable values. Gasoline gallons include gasohol. Auto sale values are calculated from motor vehicle taxes collected on new and used vehicle sales. All figures are not seasonally adjusted, except
for industrial production, leading indicators and employment/unemployment. Figures are based on the most recent available data. Annual figures are for calendar years.
Annual numbers for active oil and gas drilling rigs are the median for that calendar year.
____________________
Sources: Texas Comptroller of Public Accounts (Crude Oil, Natural Gas, Motor Fuel, Auto Sales, Cigarettes) Baker-Hughes Incorporated (Active Oil & Gas Drilling Rigs) The Real Estate Center at Texas
A&M University (Median Sale Price, Existing Single-family Home Sales)
57
Tracking the Texas Economy
Key Economic Indicators
Monthly Totals
Median
Sales Price
Value of
Value of
Active
Gasoline
Diesel
Existing
Auto
Cigarette
Crude Oil Natural Gas Oil & Gas (Millions of (Millions of
Single
Sales Net Packages
Produced Produced
Drilling
Taxed
Taxed
Family
Value
Taxed
Month/Year (Millions) (Millions)
Rigs
Gallons)
Gallons)
Homes
(Millions) (Millions)
12-Jun
12-Jul
12-Aug
12-Sep
12-Oct
12-Nov
12-Dec
13-Jan
13-Feb
13-Mar
13-Apr
13-May
13-Jun
13-Jul
13-Aug
13-Sep
13-Oct
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3,813.30
4,390.80
4,874.90
4,869.80
5,000.90
4,819.00
4,899.30
5,328.60
4,928.80
5,753.60
5,599.50
5,903.60
5,709.60
6,237.00
6,217.17
$
$
$
$
$
$
$
$
$
$
$
$
$
793.80
987.60
1,119.50
1,037.90
1,219.80
1,284.20
1,290.80
1,211.00
1,148.50
1,287.30
1,407.50
1,493.60
1,414.00
932
910
901
876
867
850
838
821
833
833
836
838
841
841
848
837
820
1,065.50
1,038.00
1,034.60
1,063.70
993.10
1,047.30
1,008.40
1,018.10
973.20
933.70
1,069.60
1,035.80
1,081.50
1,059.20
1,053.70
1,091.40
340.8
332.1
331.4
347.9
324.9
379.1
304.6
319.4
322.8
283.7
361.0
341.6
353.3
333.6
334.1
350.7
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
165,500
163,800
160,600
158,500
156,500
158,700
162,900
149,400
157,100
164,600
171,700
177,700
180,900
179,600
177,700
173,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4,628.10
4,775.00
4,993.40
4,554.60
4,688.70
4,063.30
4,256.60
4,675.00
4,518.80
4,431.60
3,980.30
4,777.60
4,901.50
5,363.00
72.2
74.8
89.1
67.3
93.1
85.8
66.2
73.1
73.2
74.8
84.3
91.6
69.7
83.1
91.9
60.2
____________________
Sources: Texas Comptroller of Public Accounts (Crude Oil, Natural Gas, Motor Fuel, Auto Sales, Cigarettes) Baker-Hughes Incorporated (Active Oil & Gas Drilling Rigs) The Real Estate Center at Texas
A&M University (Median Sale Price, Existing Single-family Home Sales)
58
Population Growth Forecast: 2010–2030
Laredo
McAllen-Edinburg-Mission
Austin-Round Rock-San Marcos
Sherman-Denison
Brownsville-Harlingen
Dallas-Fort Worth-Arlington
El Paso
San Antonio-New Braunfels
Houston-Sugar Land-Baytown
Texas Average
College Station-Bryan
Killeen-Temple-Ft. Hood
Corpus Christi
Amarillo
Victoria
U.S. Average
Odessa
Tyler
Waco
Midland
Texarkana
Longview
San Angelo
Lubbock
Beaumont-Port Aurthur
Wichita Falls
Abilene
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
From 2010 to 2030, the Texas population is expected grow by ~32% vs. ~21% for the total U.S. population
____________________
Source: U.S. Census Bureau and Texas A&M Real Estate Center.
59
Texas Employment by Industry
(June 2012– June 2013)
2.5%
Education
& Health Services
Mining & Logging
Other Services
Transportation,
Warehousing,
& Utilities
Construction
Financial Activities
Manufacturing
Leisure &
Hospitality
Government
Source: Texas A&M Real Estate Center
Professional
Business Services
Financial Activities
Other Services
Education
& Health Services
Trade
Mining & Logging
Professional
Business Services
4.0%
Leisure & Hospitality
Information
0.0%
Construction
12.0%
Information
Government
8.0%
Transportation,
Warehousing,
& Utilities
Share of Employment in Texas
Trade
20.0%
Manufacturing
Oil & Gas Included
16.0%
Texas Employment Growth
Oil & Gas Included
3.8%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
60
Recent Texas Headlines
Energy firms sign oil pipeline pact… Trafigura AG, operates a terminal in Corpus Christi, will soon be getting as much as
100,000 barrels of Eagle Ford crude oil per day through a pipeline from McMullen County – Caller Times 11/08/13
Quintana Corpus Christ Infrastructure, LLC developing mid-stream 50,000 barrel-per-day processing plant operating in
2016. – Caller Times 8/16/13
Occidental Petroleum Corp. plans to build propane export facility in Ingleside….. Project expected to approach $1 billion and
bring dozens of jobs to San Patricio County – Corpus Christi Caller Times 7/25/13
Houston area employers created 118,200 new jobs between Jan 2012 and Jan 2013…..a 4.5% year-over-year increase
– Houston Chronicle 3/11/13
Tenaris announced on February 15, 2013 that it will build its first US seamless pipe mill in Bay City, Matagorda County,
Texas… estimates investment of $1.5 million (USD).– Tenaris
Area to see $28bn bonanza…investing est $28bn in Eagle Ford in 2013, 27% of industry’s 2013 capital investment in lower
48 states will go to the Eagle Ford – San Antonio Express News 12/9/12
Houston is expected to add the most households of any U.S. metropolitan area over the next five years.
– Houston Business Journal 11/27/12
Cheniere has applied for permits to build an LNG plant on 660 acres in San Patricio County…worth in excess of $10 billion
– Corpus Christi Caller Times
Pangea LNG (Daewoo and Statoil) is seeking federal approval for an LNG export facility….estimate a $5bn investment
– Corpus Christi Caller Times 11/30/12
Texas coast wins largest single manufacturing investment by a Chinese company in the U.S….a skilled work force and strategic
location helped a Texas coastal city win a $1 billion pipe manufacturing facility – Texas Comptroller of Public Accounts
Best mid-sized cities for jobs….No. 2: Corpus Christi, TX – Forbes
China takes big role in Texas plant …$2.5bn power plant and chemical plant in Odessa – WSJ 9/13/12
Home sales are strong in the Woodlands, where Exxon Mobil is constructing a new corporate campus where 10,000 people will
work – Culture Map: Houston
Exxon Mobil moves to expand chemical plant….the company joins other petrochemical producers, including Dow Chemical Co.
and Chevron Phillips Chemical Co., that have announced natural gas-fueled expansion plans in the Houston area in recent
months – Houston Chronicle
61
Partial List of Sources for Economic Data
 http://www.window.state.tx.us/
 http://www.texasahead.org/economy/tracking/
 http://www.dallasfed.org/
 http://texaseconomicdevelopmentguide.com/
 http://recenter.tamu.edu/
 http://texascenter.tamiu.edu/
 http://www.ccredc.com/
 http://www.mcallenedc.org/
 http://www.ldfonline.org/
 http://www.midlandtxedc.com/
 http://www.houston.org/
 http://www.mywesttexas.com/business/
62
Susser Holdings Corporation Reconciliation of Net Income to EBITDA,
Adjusted EBITDA and Adjusted EBITDAR
Fiscal Year Ended
December 31, December 30, December 28, January 3, January 2, January 1, December 30,
2006
2007
2008
2010
2011
2012
2012
Net income attributable to Susser
Holdings Corporation
$
Net income attributable to
noncontrolling interest
Depreciation, amortization and
accretion
Interest expense, net
Income tax expense
(3,746) $
16,252 $
16,477 $
2,068 $
786 $ 47,457 $
61
42
48
39
3
14
22,780
25,201
48
29,469
16,152
(5,753)
40,842
39,256
10,396
44,382
38,103
1,805
43,998
64,039
4,994
47,320
40,726
26,347
46,725
Twelve Months Ended
Sept 30,
Sept 29,
2012
2013
$
41,435 $
18,994
4,572
299
18,014
51,434
41,019
33,645
50,812
41,415
29,625
57,943
55,091
19,547
EBITDA
Non-cash stock based compensation
Loss on disposal of assets
Other miscellaneous expense
$
44,344 $
803
(452)
56,162 $
2,429
190
(435)
107,019 $ 86,397 $ 113,820 $ 161,864 $
3,946
3,433
2,825
3,588
9
2,402
3,193
1,220
(278)
55
174
346
177,395
4,337
694
471
$
163,586 $
4,910
88
455
169,589
5,318
1,712
601
Adjusted EBITDA
$
45,286 $
58,346 $
110,696 $ 92,287 $ 120,012 $ 167,018 $
182,897
$
169,039 $
177,220
$
22,694
67,980 $
25,822
84,168 $
34,620
36,899
42,623
45,738
145,316 $ 129,186 $ 162,635 $ 212,756 $
46,407
229,304
$
46,225
215,264 $
47,405
224,625
Rent
Adjusted EBITDAR
63
Susser Holdings Corporation Reconciliation of Adjusted EBITDAR to
Fuel Neutral Adjusted EBITDAR
Fiscal Year Ended
January 3,
2010
Adjusted EBITDAR, Actual
Adjustments:
CPG neutral adjustment - retail (1)
CPG neutral adjustment - wholesale (1)
G&A bonus & 401(k) match adjustment (3)
$
Fuel-Neutral Adjusted EBITDAR
$
129,186 $
26,476
7,192
1,077
163,931 $
January 2,
2011
162,635 $
4,557
1,347
8,558
177,097 $
Twelve Months Ended
January 1,
2012
December 30,
2012
212,756 $
229,304
(23,784)
(2,093)
9,927
(19,850)
(3,816)
9,617
196,806 $
215,255
Percent change from prior period (4)
7%
8%
11%
9%
CPG adjustment - retail fuel (1) (2)
CPG adjustment - wholesale fuel (1)
3.7¢
1.5¢
0.6¢
0.3¢
-3.0¢
-0.4¢
-2.3¢
-0.6¢
(1)
(2)
(3)
(4)
September 30, September 29,
2012
2013
$
$
215,264 $
224,625
(8,781)
(2,099)
9,087
(11,338)
(7,268)
4,333
213,471 $
210,352
-1%
-1.0¢
-0.4¢
-1.2¢
-1.2¢
Normalizes retail CPG after credit cards at a 5 year rolling average of 14.5 cents and wholesale 3rd-party CPG at a 5-year rolling average of 5.6 cents.
Adjusted to eliminate impact of MLP structure on retail margin.
Excludes all G&A bonus and 401-K match, as these are partly based on results including actual fuel margins.
Calendar year periods compared to prior calendar year. Twelve-month period ended September 29, 2013 is compared to the twelve months ended September 30, 2012.
64
Susser Petroleum Partners Reconciliation of Net Income to EBITDA,
Adjusted EBITDA and Distributable Cash Flow
Net income
Depreciation, amortization and accretion
Interest expense, net
Income tax expense
EBITDA
Non-cash stock based compensation (a)
Loss on disposal of assets and impairment charge
Other miscellaneous expense
Adjusted EBITDA
Cash interest expense
State franchise tax expense (cash)
Maintenance capital expenditures
Distributable cash flow
Three Months Ended
September 30,
September 30,
2012
2013
Nine Months Ended
September 30,
September 30,
2012
2013
Predecessor
(in thousands)
Predecessor
(in thousands)
$
$
3,617
2,016
113
1,739
7,485
247
194
7,926
$
$
$
9,597
2,432
921
145
13,095
546
112
13,753
825
24
211
12,693
$
$
8,994
5,793
293
4,813
19,893
816
229
20,938
$
$
$
27,504
6,090
2,370
298
36,262
1,351
206
37,819
2,084
165
538
35,032
65