Sprague Resources LP has declared a cash distribution of $0.6675 per unit for the quarter ended June 30, 2020, equating to $2.67 on an annualized basis. This announcement reflects consistent quarterly distributions since Q2 2019. The cash distribution will be paid on August 10, 2020, to unitholders of record as of August 4, 2020. Furthermore, Sprague will release its unaudited second quarter financial results on August 6, 2020, followed by a conference call at 1:00 p.m. Eastern time to discuss these results.
Sprague Resources LP announced on June 4, 2020, that Sprague Resources Holdings LLC has withdrawn its non-binding acquisition proposal from March 25, 2020. This proposal sought to acquire all outstanding common units of Sprague that Holdings and its affiliates do not already own. The withdrawal indicates a change in strategic direction for Holdings and may impact investor sentiment toward SRLP.
Sprague Resources LP (NYSE: SRLP) announced a second amended and restated senior secured credit agreement with major financial institutions, including MUFG Bank and BNP Paribas. This agreement, which matures on May 19, 2022, features a committed U.S. dollar revolving working capital facility of up to $465 million and other facilities totaling up to $1.2 billion, depending on lender commitments. CFO David Long emphasized the lenders' confidence in Sprague's strength amid challenging conditions. The obligations are secured by the assets of Sprague and its subsidiaries.
Sprague Resources LP (NYSE: SRLP) reported a decline in financial performance for Q1 2020. Net sales reached $959.9 million, down from $1,258.3 million in Q1 2019. GAAP net income increased to $46.7 million from $33.9 million year-over-year. Adjusted gross margin fell to $83.1 million from $95.4 million, while adjusted EBITDA decreased from $50.9 million to $42.4 million. The decrease in volumes for refined products and natural gas, driven by warmer weather, impacted results. The company expects adjusted EBITDA for 2020 to range between $105 million and $120 million.