Business Context and Reporting Period
Company: Global Partners LP
Filing Type: Form 8-K (Current Report)
Date of Report: March 12, 2014
Reporting Period: The filing addresses the full year 2013 guidance and the restatement of unaudited financial statements for the quarters ended March 31, 2013, June 30, 2013, and September 30, 2013.
Key Financial Metrics
This filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document serves as a notice regarding the reliability of previously issued financial statements rather than a report of new financial results.
Material Changes and Restatements
The Partnership announced that previously issued unaudited consolidated financial statements for the first three quarters of 2013 should no longer be relied upon. The restatement is driven by two primary factors:
- Renewable Identification Numbers (RINs): Correction of accounting treatment for RINs due to a lack of published GAAP guidelines at the time of original reporting. The Partnership retroactively applied corrected accounting based on industry practice.
- Accrued Obligations: Adjustment of an accrued obligation affecting cost of goods sold related to petroleum product procurement, identified through a retrospective review of aging accrued obligations.
Consequently, the filing of the Annual Report on Form 10-K for the year ended December 31, 2013, has been delayed.
Guidance, Outlook, and Management Commentary
Guidance: On March 13, 2014, Global Partners LP issued a press release affirming its full-year 2013 guidance despite the accounting restatement.
Outlook: The Partnership intends to file the delayed 2013 Form 10-K no later than Monday, March 31, 2014. Form 10-Q/As for the restated periods will be filed as soon as reasonably practicable.
Risks and Contingencies: The filing highlights the risk associated with the absence of clear GAAP guidelines for RINs, which necessitated a change in accounting methodology. The information furnished is not deemed "filed" under the Exchange Act unless specifically stated otherwise.
Investor Verification Checklist
- Verify the specific financial impact of the RIN accounting correction on prior quarter earnings once the Form 10-Q/As are filed.
- Confirm the magnitude of the out-of-period adjustments to accrued obligations for petroleum procurement.
- Monitor the filing of the 2013 Form 10-K by the March 31, 2014 deadline.
- Review the attached press release (Exhibit 99.1) for details on the affirmed full-year 2013 guidance.