PORTSMOUTH, N.H., Aug. 08, 2018 (GLOBE NEWSWIRE) -- Sprague Resources LP (NYSE: SRLP) today reported its financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Highlights

• Net sales were $741.7 million for the second quarter of 2018, compared to net sales of $513.6 million for the second quarter of 2017.
• GAAP net loss was $13.2 million for the second quarter of 2018, compared to net loss of $7.8 million for the second quarter of 2017.
• Adjusted gross margin⁽¹⁾ was $49.7 million for the second quarter of 2018, compared to adjusted gross margin of $40.7 million for the second quarter of 2017.
• Adjusted EBITDA⁽¹⁾ was $9.3 million for the second quarter of 2018, compared to adjusted EBITDA of $4.9 million for the second quarter of 2017.

"Second quarter results were in-line with our expectations as we continue to benefit from our recent acquisitions," said David Glendon, President and Chief Executive Officer. "Reflecting on results for the second quarter, we expect full-year adjusted EBITDA to be in the range of $120 to $140 million," said Mr. Glendon.

Refined Products

• Volumes in the Refined Products segment increased 13% to 304.2 million gallons in the second quarter of 2018, compared to 270.3 million gallons in the second quarter of 2017.
• Adjusted gross margin in the Refined Products segment increased $4.9 million, or 20%, to $28.7 million in the second quarter of 2018, compared to $23.8 million in the second quarter of 2017.

“Sprague's Refined Products sales volumes increased 13%, supported by recent acquisitions and beneficial weather early in the quarter," said Mr. Glendon. "Adjusted gross margin improved by 20% on higher volumes and improved unit margins," said Mr. Glendon.

Natural Gas

• Natural Gas segment volumes decreased 9% to 12.3 million Bcf in the second quarter of 2018, compared to 13.5 million Bcf in the second quarter of 2017.
• Natural Gas adjusted gross margin increased $2.5 million, or 97%, to $5.1 million for the second quarter of 2018, compared to $2.6 million for the second quarter of 2017.

"While Natural Gas volumes declined primarily due to the loss of some higher volume, lower unit margin accounts, adjusted gross margin improved by 97% over last year's results primarily due to enhanced optimization opportunities and beneficial fair value and other adjustments to our forward derivative positions," said Mr. Glendon.

Materials Handling

• Materials Handling adjusted gross margin increased by $1.5 million, or 11%, to $14.3 million for the second quarter of 2018, compared to $12.8 million for the second quarter of 2017.

"Increased asphalt handling, at our Kildair terminal as well as increased heavy-lift activity were the primary drivers of the 11% increase in Materials Handling adjusted gross margin." reported Mr. Glendon. Timing differences related to dry bulk handling also contributed to the increase," said Mr. Glendon.

Sprague's guidance for the 2018 fiscal year is as follows:

• Adjusted EBITDA is expected to be in the range of $120 million to $140 million.
• Operating expense is expected to be between $86 million and $91 million.
• Selling, general and administrative expenses are anticipated to be in the range of $88 million to $93 million.
• Cash interest is expected to range from $28 million to $33 million.
• Cash taxes are anticipated to be approximately $5 million.
• Expansion Capex is expected to range from $8 million to $13 million.
• Maintenance capex is expected to be at the low end of the $13 million to $16 million range.
• Distribution coverage ratio for full-year 2018 is expected to range from 1.1x to 1.3x.

⁽¹⁾ Please refer to Reconciliation of Net Income (Loss) to Non-GAAP Measures

Quarterly Distribution Increase

On July 26, 2018, the Board of Directors of Sprague’s general partner, Sprague Resources GP LLC, announced its seventeenth consecutive distribution increase and approved a cash distribution of $0.6675 per unit for the quarter ended June 30, 2018, representing a 2% increase over the distribution declared for the quarter ended March 31, 2018. The distribution will be paid on August 10, 2018 to unitholders of record as of the close of business on August 6, 2018.

About Sprague Resources LP

Sprague Resources LP is a master limited partnership engaged in the purchase, storage, distribution and sale of refined petroleum products and natural gas. Sprague also provides storage and handling services for a broad range of materials.