What were the cash distributions per common unit for Aplus in 2021?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| $ 6,826 | $ 6,830 |
|---|
The accompanying notes are an integral part of these consolidated financial statements.
SUNOCO LP CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Dollars in millions, except per unit data)
| Year Ended December 31, | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | |||
| REVENUES: | |||||
| Motor fuel sales | $ 22,525 | $ | 25,216 | $ | 17,152 |
| Non-motor fuel sales | 392 | 370 | 306 | ||
| Lease income | 151 | 143 | 138 | ||
| Total revenues | 23,068 | 25,729 | 17,596 | ||
| COST OF SALES AND OPERATING EXPENSES: | |||||
| Cost of sales | 21,703 | 24,350 | 16,246 | ||
| General and administrative | 126 | 120 | 109 | ||
| Other operating | 356 | 338 | 270 | ||
| Lease expense | 68 | 63 | 59 | ||
| Gain on disposal of assets | (7) | (13) | (14) | ||
| Depreciation, amortization and accretion | 187 | 193 | 177 | ||
| Total cost of sales and operating expenses | 22,433 | 25,051 | 16,847 | ||
| OPERATING INCOME | 635 | 678 | 749 | ||
| OTHER INCOME (EXPENSE): | |||||
| Interest expense, net | (217) | (182) | (163) | ||
| Other income, net | 7 | 1 | — | ||
| Equity in earnings of unconsolidated affiliates | 5 | 4 | 4 | ||
| Loss on extinguishment of debt | — | — | (36) | ||
| INCOME BEFORE INCOME TAXES | 430 | 501 | 554 | ||
| Income tax expense | 36 | 26 | 30 | ||
| NET INCOME AND COMPREHENSIVE INCOME | $ 394 | $ | 475 | $ | 524 |
| NET INCOME PER COMMON UNIT: | |||||
| Common units - basic | $ 3.70 | $ | 4.74 | $ | 5.35 |
| Common units - diluted | $ 3.65 | $ | 4.68 | $ | 5.28 |
| WEIGHTE |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the cash distributions per common unit for the year 2021 was $3.302. This figure represents the total cash distributed to common unitholders for each unit they held during that year. This number is important for prospective franchisees as it provides insight into the potential returns on investment based on the distribution of profits to unit holders.
It's important to note that the distributions are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit. This means that while net income per unit can give an idea of profitability, the actual cash distributed might differ based on the company's decisions regarding reinvestment and other factors. The net income per common unit for 2021 was $5.35 basic and $5.28 diluted, which is higher than the cash distributions per common unit, indicating that Aplus retained some earnings for other purposes.
For a prospective Aplus franchisee, understanding the difference between net income per unit and cash distributions per unit is crucial. While a high net income per unit suggests strong profitability, the cash distributions reflect the actual cash return received by unit holders. Reviewing these figures over several years, as presented in the FDD, can provide a more comprehensive view of Aplus's distribution policies and potential investment returns. Additionally, it would be prudent to inquire with Aplus about their distribution strategy and factors that influence their decisions on distributing cash versus reinvesting earnings.