EL PASO, Texas--(BUSINESS WIRE)--May. 6, 2009--
Western Refining, Inc. (NYSE:WNR) today reported net earnings of $58.9
million, or $0.86 per diluted share, for the first quarter ended March
31, 2009, versus a net loss of $40.4 million, or $0.60 per diluted
share, for the same period in 2008.
The increase in earnings for the three months ended March 31, 2009,
compared to the same period in 2008, was primarily due to stronger
refining margins. The higher margins were the result of improved market
conditions and a reduction in the cost of the Company’s crude oil,
primarily the result of processing a lower-cost, heavier crude oil slate.
For the three months ended March 31, 2009, Western generated cash flow
from operations of $96.8 million. As of March 31, 2009, there were no
cash borrowings outstanding under the Company's revolving credit
facility, and since that date, the Company has not made any cash
borrowings.
Paul Foster, Western’s Chief Executive Officer, said, “We are pleased
with our first quarter results. This was one of the most profitable
first quarters in the history of our company. Our earnings growth
reflects the operational improvements we have made as well as strong
refining margins in January and February.”
“We are taking a number of actions to continue this momentum,” Foster
continued. “In addition to raising sour crude throughput, the recent
start-up of our gasoline hydrotreater unit at the El Paso refinery also
gives us the capability to increase our production of Phoenix grade
gasoline from approximately 12,000 barrels per day to in excess of
20,000 barrels per day. Historically, Phoenix has been one of our best
markets in terms of both product demand and gross margin.
“In the past year, we have significantly improved our refining
operations. The improvements we made have positioned us to process a
wide range of crude oils and intermediate feedstocks at our refineries.
This flexibility should contribute to continued earnings and cash flow
growth in the future.”
Commenting on current market conditions, Foster said, “As we begin the
spring and summer driving season, we are cautiously optimistic in our
outlook for margins as a result of inventory draws, increased gasoline
demand, and continued low refinery utilization rates. In our southwest
market, several refineries will be undergoing major maintenance
turnarounds in the second quarter. Additionally, as we approach the
summer paving season, asphalt margins at the El Paso refinery are
significantly better this year than last year.”
Conference Call Information
A conference call is scheduled for May 6, 2009, at 10:00 a.m. ET to
discuss Western’s financial results. The call can be accessed at
Western’s website, www.wnr.com.
The call can also be heard by dialing (888) 713-4218, passcode:
51270382. The audio replay will be available through May 20, 2009, by
dialing (888) 286-8010, passcode: 77009672.
A copy of this press release, together with the reconciliations of
certain non-GAAP financial measures contained herein, can be accessed on
the investor relations menu on Western’s website, www.wnr.com.
About Western Refining
Western Refining, Inc. is an independent refining and marketing company
headquartered in El Paso, Texas. Western has a refinery in El Paso, two
refineries in the Four Corners region of northern New Mexico and a
refinery in Yorktown, Virginia. Western’s asset portfolio also includes
refined products terminals in Albuquerque, New Mexico and Flagstaff,
Arizona, asphalt terminals in Phoenix and Tucson, Arizona, Albuquerque
and El Paso, retail service stations and convenience stores in Arizona,
Colorado and New Mexico, a fleet of crude oil and finished product truck
transports, and wholesale petroleum products operations in Arizona,
California, Colorado, Nevada, New Mexico, Texas and Utah. More
information about the Company is available at www.wnr.com.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements. The
forward-looking statements contained herein include statements about the
actions we are taking to continue the momentum we have experienced in
the first quarter, our ability to increase our production of Phoenix
grade gasoline, our ability to process a wider range of crude oil and
intermediate feedstocks at our refineries, operational improvements at
our refineries, and our expectations of future earnings and cash flow
growth, and margins for our products. These statements are subject to
the general risks inherent in our business. Our expectations may or may
not be realized. Some of our expectations may be based upon assumptions
or judgments that prove to be incorrect. In addition, Western’s business
and operations involve numerous risks and uncertainties, many of which
are beyond Western’s control, which could result in Western’s
expectations not being realized or otherwise materially affect Western’s
financial condition, results of operations and cash flows. Additional
information relating to the uncertainties affecting Western’s business
is contained in its filings with the Securities and Exchange Commission.
The forward-looking statements are only as of the date made, and Western
does not undertake any obligation to (and expressly disclaims any
obligation to) update any forward looking statements to reflect events
or circumstances after the date such statements were made, or to reflect
the occurrence of unanticipated events.
|
Consolidated Financial Data
The following tables set forth our summary of historical financial
and operating data for the periods indicated below:
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
|
2008
|
|
|
|
|
(In thousands, except per share data)
|
|
Statement of Operations Data:
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,368,198
|
|
|
$
|
2,551,071
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
Cost of products sold (exclusive of
depreciation and amortization)
|
|
|
1,046,615
|
|
|
|
2,402,846
|
|
|
Direct operating expenses (exclusive
of depreciation and amortization)
|
|
|
133,538
|
|
|
|
132,921
|
|
|
Selling, general, and administrative
expenses
|
|
|
35,018
|
|
|
|
29,558
|
|
|
Maintenance turnaround expense
|
|
|
104
|
|
|
|
955
|
|
|
Depreciation and amortization
|
|
|
34,240
|
|
|
|
25,597
|
|
|
Total operating costs and
expenses
|
|
|
1,249,515
|
|
|
|
2,591,877
|
|
|
Operating income (loss)
|
|
|
118,683
|
|
|
|
(40,806
|
)
|
|
Interest income
|
|
|
143
|
|
|
|
571
|
|
|
Interest expense
|
|
|
(27,055
|
)
|
|
|
(18,564
|
)
|
|
Amortization of loan fees
|
|
|
(1,554
|
)
|
|
|
(825
|
)
|
|
Loss from derivative activities
|
|
|
(1,216
|
)
|
|
|
(2,481
|
)
|
|
Other income (expense)
|
|
|
922
|
|
|
|
992
|
|
|
Income (loss) before income taxes
|
|
|
89,923
|
|
|
|
(61,113
|
)
|
|
Provision for income taxes
|
|
|
(30,995
|
)
|
|
|
20,712
|
|
|
Net income (loss)
|
|
$
|
58,928
|
|
|
$
|
(40,401
|
)
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.86
|
|
|
$
|
(0.60
|
)
|
|
Dilutive earnings per share
|
|
$
|
0.86
|
|
|
$
|
(0.60
|
)
|
|
Weighted average basic shares outstanding
|
|
|
67,817
|
|
|
|
67,580
|
|
|
Weighted average dilutive shares outstanding
|
|
|
67,826
|
|
|
|
67,580
|
|
|
Cash Flow Data:
|
|
|
|
|
|
|
|
Net cash provided by (used in):
|
|
|
|
|
|
|
|
Operating activities
|
|
$
|
96,840
|
|
|
$
|
68,642
|
|
|
Investing activities
|
|
|
(38,655
|
)
|
|
|
(70,553
|
)
|
|
Financing activities
|
|
|
(63,773
|
)
|
|
|
(247,328
|
)
|
|
Other Data:
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
$
|
141,921
|
|
|
$
|
(15,172
|
)
|
|
Capital expenditures
|
|
|
38,655
|
|
|
|
70,553
|
|
|
Balance Sheet Data (at end of period):
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
74,229
|
|
|
$
|
40,326
|
|
|
Working capital
|
|
|
335,666
|
|
|
|
283,686
|
|
|
Total assets
|
|
|
3,099,651
|
|
|
|
3,346,742
|
|
|
Total debt
|
|
|
1,277,250
|
|
|
|
1,343,250
|
|
|
Stockholders’ equity
|
|
|
870,713
|
|
|
|
704,743
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA represents earnings before interest expense,
income tax expense, amortization of loan fees, depreciation,
amortization, maintenance turnaround expense and lower of cost or
market, or LCM, inventory reserve adjustment. However, Adjusted
EBITDA is not a recognized measurement under GAAP. Our management
believes that the presentation of Adjusted EBITDA is useful to
investors because it is frequently used by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry. In addition, our management believes
that Adjusted EBITDA is useful in evaluating our operating
performance compared to that of other companies in our industry
because the calculation of Adjusted EBITDA generally eliminates
the effects of financings, income taxes and the accounting effects
of significant turnaround activities (which many of our
competitors capitalize and thereby exclude from their measures of
EBITDA) and acquisitions, items that may vary for different
companies for reasons unrelated to overall operating performance.
|
Adjusted EBITDA has limitations as an analytical tool, and you should
not consider it in isolation, or as a substitute for analysis of our
results as reported under GAAP. Some of these limitations are:
-
Adjusted EBITDA does not reflect our cash expenditures or future
requirements for significant turnaround activities, capital
expenditures, or contractual commitments;
-
Adjusted EBITDA does not reflect the interest expense or the cash
requirements necessary to service interest or principal payments on
our debt;
-
Adjusted EBITDA does not reflect changes in, or cash requirements for,
our working capital needs; and
-
our calculation of Adjusted EBITDA may differ from the Adjusted EBITDA
calculations of other companies in our industry, thereby limiting its
usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered a
measure of discretionary cash available to us to invest in the growth of
our business. We compensate for these limitations by relying primarily
on our GAAP results and using Adjusted EBITDA only supplementally. The
following table reconciles net income (loss) to Adjusted EBITDA for the
periods presented:
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2009
|
|
|
2008
|
|
|
|
|
(In thousands)
|
|
|
Net income (loss)
|
|
$
|
58,928
|
|
|
$
|
(40,401
|
)
|
|
Interest expense
|
|
|
27,055
|
|
|
|
18,564
|
|
|
Provision for income taxes
|
|
|
30,995
|
|
|
|
(20,712
|
)
|
|
Amortization of loan fees
|
|
|
1,554
|
|
|
|
825
|
|
|
Depreciation and amortization
|
|
|
34,240
|
|
|
|
25,597
|
|
|
Maintenance turnaround expense
|
|
|
104
|
|
|
|
955
|
|
|
Net change in LCM reserve
|
|
|
(10,955
|
)
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
$
|
141,921
|
|
|
$
|
(15,172
|
)
|
|
Refining Segment
The following table presents the segment financial data for our
refining group, including other revenues and expenses not specific
to a particular refinery:
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per barrel data)
|
|
Net sales (including intersegment
sales)
|
|
$
|
1,292,668
|
|
|
$
|
2,563,136
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of products sold (exclusive of depreciation and amortization)
(1)
|
|
|
1,012,109
|
|
|
|
2,445,278
|
|
|
Direct operating expenses (exclusive of depreciation and
amortization)
|
|
|
105,402
|
|
|
|
113,949
|
|
|
Selling, general and administrative expenses
|
|
|
10,595
|
|
|
|
9,154
|
|
|
Maintenance turnaround expense
|
|
|
104
|
|
|
|
955
|
|
|
Depreciation and amortization
|
|
|
29,242
|
|
|
|
22,053
|
|
|
Total operating costs and expenses
|
|
|
1,157,452
|
|
|
|
2,591,389
|
|
|
Operating income (loss)
|
|
$
|
135,216
|
|
|
$
|
(28,253
|
)
|
|
|
|
|
|
|
|
|
|
|
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Total sales volume (bpd) (2)
|
|
|
260,452
|
|
|
|
266,084
|
|
|
Total refinery production (bpd)
|
|
|
228,164
|
|
|
|
230,291
|
|
|
Total refinery throughput (bpd) (3)
|
|
|
229,453
|
|
|
|
231,233
|
|
|
Per barrel of throughput:
|
|
|
|
|
|
|
|
|
Refinery gross margin (1) (4)
|
|
$
|
13.59
|
|
|
$
|
5.60
|
|
|
Gross profit (4)
|
|
|
12.17
|
|
|
|
4.55
|
|
|
Direct operating expenses (5)
|
|
|
5.10
|
|
|
|
5.41
|
|
|
|
|
|
|
|
|
|
|
|
(1) Inventories at March 31, 2009 are net of a non-cash LCM
write-down of $50.0 million, compared to a non-cash LCM write-down
of $61.0 million at December 31, 2008. We refer to these LCM
write-downs as our LCM reserve. The net effect of the change in
the LCM reserve from December 31, 2008 to March 31, 2009 to value
our Yorktown inventories to net realizable market values decreased
cost of products sold and increased refinery gross margin by
$11.0 million.
(2) Includes sales of refined products sourced from our refinery
production as well as refined products purchased from third
parties.
(3) Total refinery throughput includes crude oil, other
feedstocks, and blendstocks.
(4) Refinery gross margin is a per barrel measurement calculated
by dividing the difference between net sales and cost of products
sold by our refineries’ total throughput volumes for the
respective periods presented. We have experienced gains or losses
from derivative activities that are not taken into account in
calculating refinery gross margin. Cost of products sold does not
include any depreciation or amortization. Refinery gross margin is
a non-GAAP performance measure that we believe is important to
investors in evaluating our refinery performance as a general
indication of the amount above our cost of products that we are
able to sell refined products. Each of the components used in this
calculation (net sales and cost of products sold) can be
reconciled directly to our statement of operations. Our
calculation of refinery gross margin may differ from similar
calculations of other companies in our industry, thereby limiting
its usefulness as a comparative measure.
|
|
The following tables reconcile gross profit to refinery gross
margin for the periods presented:
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
(In thousands, except per barrel data)
|
|
Net sales (including intersegment sales)
|
|
$
|
1,292,668
|
|
$
|
2,563,136
|
|
Cost of products sold (exclusive of depreciation and amortization)
|
|
|
1,012,109
|
|
|
2,445,278
|
|
Depreciation and amortization
|
|
|
29,242
|
|
|
22,053
|
|
Gross profit
|
|
|
251,317
|
|
|
95,805
|
|
Plus depreciation and amortization
|
|
|
29,242
|
|
|
22,053
|
|
Refinery gross margin
|
|
$
|
280,559
|
|
$
|
117,858
|
|
|
|
|
|
|
|
|
|
Refinery gross margin per refinery throughput barrel
|
|
$
|
13.59
|
|
$
|
5.60
|
|
Gross profit per refinery throughput barrel
|
|
$
|
12.17
|
|
$
|
4.55
|
|
|
|
|
|
|
|
|
|
(5) Refinery direct operating expenses per throughput barrel is
calculated by dividing direct operating expenses by total
throughput volumes for the respective periods presented. Direct
operating expenses do not include any depreciation or amortization.
|
|
The following tables set forth our summary refining throughput and
production data for the periods presented below:
|
|
|
|
|
|
All Refineries
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
|
2008
|
|
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Refinery product yields (bpd)
|
|
|
|
|
|
|
|
|
Gasoline
|
|
|
118,797
|
|
|
|
119,926
|
|
Diesel and jet fuel
|
|
|
85,548
|
|
|
|
87,902
|
|
Residuum
|
|
|
6,351
|
|
|
|
4,732
|
|
Other
|
|
|
10,357
|
|
|
|
11,117
|
|
Liquid products
|
|
|
221,053
|
|
|
|
223,677
|
|
By-products (coke and sulfur)
|
|
|
7,111
|
|
|
|
6,614
|
|
Total refinery production (bpd)
|
|
|
228,164
|
|
|
|
230,291
|
|
|
|
|
|
|
|
|
|
|
Refinery throughput (bpd)
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
128,809
|
|
|
|
154,724
|
|
Sour or heavy crude oil
|
|
|
72,775
|
|
|
|
55,178
|
|
Other feedstocks/blendstocks
|
|
|
27,869
|
|
|
|
21,331
|
|
Total refinery throughput (bpd)
|
|
|
229,453
|
|
|
|
231,233
|
|
El Paso Refinery
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
|
2008
|
|
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Refinery product yields (bpd)
|
|
|
|
|
|
|
|
|
Gasoline
|
|
|
69,621
|
|
|
|
64,751
|
|
Diesel and jet fuel
|
|
|
51,960
|
|
|
|
50,815
|
|
Residuum
|
|
|
6,351
|
|
|
|
4,732
|
|
Other
|
|
|
3,550
|
|
|
|
4,270
|
|
Total refinery production (bpd)
|
|
|
131,482
|
|
|
|
124,568
|
|
|
|
|
|
|
|
|
|
|
Refinery throughput (bpd)
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
104,307
|
|
|
|
102,123
|
|
Sour crude oil
|
|
|
16,854
|
|
|
|
11,852
|
|
Other feedstocks/blendstocks
|
|
|
12,560
|
|
|
|
12,198
|
|
Total refinery throughput (bpd)
|
|
|
133,721
|
|
|
|
126,173
|
|
|
|
|
|
|
|
|
|
|
Total sales volume (bpd)
|
|
|
145,127
|
|
|
|
143,713
|
|
Per barrel of throughput:
|
|
|
|
|
|
|
|
|
Refinery gross margin
|
|
$
|
13.57
|
|
|
$
|
5.74
|
|
Direct operating expenses
|
|
|
3.83
|
|
|
|
4.19
|
|
Yorktown Refinery
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
|
2008
|
|
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Refinery product yields (bpd)
|
|
|
|
|
|
|
|
|
Gasoline
|
|
|
33,279
|
|
|
|
34,906
|
|
Diesel and jet fuel
|
|
|
26,129
|
|
|
|
28,450
|
|
Other
|
|
|
5,809
|
|
|
|
5,667
|
|
Liquid products
|
|
|
65,217
|
|
|
|
69,023
|
|
By-products (coke and sulfur)
|
|
|
7,111
|
|
|
|
6,614
|
|
Total refinery production (bpd)
|
|
|
72,328
|
|
|
|
75,637
|
|
|
|
|
|
|
|
|
|
|
Refinery throughput (bpd)
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
27
|
|
|
|
24,992
|
|
Heavy crude oil
|
|
|
55,921
|
|
|
|
43,326
|
|
Other feedstocks/blendstocks
|
|
|
14,545
|
|
|
|
5,636
|
|
Total refinery throughput (bpd)
|
|
|
70,493
|
|
|
|
73,954
|
|
|
|
|
|
|
|
|
|
|
Total sales volume (bpd)
|
|
|
80,498
|
|
|
|
73,317
|
|
Per barrel of throughput:
|
|
|
|
|
|
|
|
|
Refinery gross margin (1)
|
|
$
|
11.87
|
|
|
$
|
3.37
|
|
Direct operating expenses
|
|
|
5.20
|
|
|
|
4.58
|
|
Four Corners Refineries
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
|
2008
|
|
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Refinery product yields (bpd)
|
|
|
|
|
|
|
|
|
Gasoline
|
|
|
15,897
|
|
|
|
20,270
|
|
Diesel and jet fuel
|
|
|
7,459
|
|
|
|
8,637
|
|
Other
|
|
|
998
|
|
|
|
1,179
|
|
Total refinery production (bpd)
|
|
|
24,354
|
|
|
|
30,086
|
|
|
|
|
|
|
|
|
|
|
Refinery throughput (bpd)
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
24,475
|
|
|
|
27,609
|
|
Other feedstocks/blendstocks
|
|
|
764
|
|
|
|
3,497
|
|
Total refinery throughput (bpd)
|
|
|
25,239
|
|
|
|
31,106
|
|
|
|
|
|
|
|
|
|
|
Total sales volume (bpd)
|
|
|
34,827
|
|
|
|
49,054
|
|
Per barrel of throughput:
|
|
|
|
|
|
|
|
|
Refinery gross margin
|
|
$
|
18.37
|
|
|
$
|
6.39
|
|
Direct operating expenses
|
|
|
10.01
|
|
|
|
8.72
|
|
Retail Segment
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
(In thousands, except per gallon data)
|
|
Statement of Operations Data:
|
|
|
|
Net sales (including intersegment sales)
|
|
$
|
132,676
|
|
|
|
$
|
189,409
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of products sold (exclusive of depreciation and amortization)
|
|
|
111,322
|
|
|
|
|
170,549
|
|
|
Direct operating expenses (exclusive of depreciation and
amortization)
|
|
|
15,799
|
|
|
|
|
15,856
|
|
|
Selling, general and administrative expenses
|
|
|
1,467
|
|
|
|
|
1,247
|
|
|
Depreciation and amortization
|
|
|
2,273
|
|
|
|
|
1,886
|
|
|
Total operating costs and
expenses
|
|
|
130,861
|
|
|
|
|
189,538
|
|
|
Operating income (loss)
|
|
$
|
1,815
|
|
|
|
$
|
(129
|
)
|
|
|
|
|
|
|
|
|
|
|
Operating Data:
|
|
|
|
|
|
|
|
|
Fuel gallons sold (in thousands)
|
|
|
49,303
|
|
|
|
|
51,483
|
|
|
Fuel margin per gallon (1)
|
|
$
|
0.16
|
|
|
|
$
|
0.12
|
|
|
Merchandise sales
|
|
$
|
43,938
|
|
|
|
$
|
42,153
|
|
|
Merchandise margin (2)
|
|
|
28.0
|
%
|
|
|
|
27.3
|
%
|
|
Operating retail outlets at period end
|
|
|
152
|
|
|
|
|
155
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
(In thousands, except per gallon data)
|
|
Net Sales:
|
|
|
|
|
|
|
|
|
Fuel sales
|
|
$
|
97,659
|
|
|
|
$
|
160,447
|
|
|
Excise taxes included in fuel revenues
|
|
|
(15,167
|
)
|
|
|
|
(19,878
|
)
|
|
Merchandise sales
|
|
|
43,938
|
|
|
|
|
42,153
|
|
|
Other sales
|
|
|
6,246
|
|
|
|
|
6,687
|
|
|
Net sales
|
|
$
|
132,676
|
|
|
|
$
|
189,409
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Products Sold:
|
|
|
|
|
|
|
|
|
Fuel cost of products sold
|
|
$
|
89,978
|
|
|
|
$
|
154,457
|
|
|
Excise taxes included in fuel cost of products sold
|
|
|
(15,167
|
)
|
|
|
|
(19,878
|
)
|
|
Merchandise cost of products sold
|
|
|
31,655
|
|
|
|
|
30,636
|
|
|
Other cost of products sold
|
|
|
4,856
|
|
|
|
|
5,334
|
|
|
Cost of products sold
|
|
$
|
111,322
|
|
|
|
$
|
170,549
|
|
|
|
|
|
|
|
|
|
|
|
Fuel margin per gallon (1)
|
|
$
|
0.16
|
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Fuel margin per gallon is a measurement calculated by dividing
the difference between fuel sales and cost of fuel sales for our
retail segment by the number of gallons sold.
(2) Merchandise margin is a measurement calculated by dividing the
difference between merchandise sales and merchandise cost of
products sold by merchandise sales. Merchandise margin is a
measure frequently used in the convenience store industry to
measure operating results related to merchandise sales.
|
|
Wholesale Segment
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
(In thousands, except per gallon data)
|
|
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
Net sales (including intersegment sales)
|
|
$
|
331,011
|
|
|
|
$
|
475,575
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of products sold (exclusive of depreciation and amortization)
|
|
|
309,670
|
|
|
|
|
458,030
|
|
|
Direct operating expenses (exclusive of depreciation and
amortization)
|
|
|
14,008
|
|
|
|
|
9,154
|
|
|
Selling, general and administrative expenses
|
|
|
4,758
|
|
|
|
|
4,196
|
|
|
Depreciation and amortization
|
|
|
1,414
|
|
|
|
|
1,156
|
|
|
Total operating costs and expenses
|
|
|
329,850
|
|
|
|
|
472,536
|
|
|
Operating income
|
|
$
|
1,161
|
|
|
|
$
|
3,039
|
|
|
|
|
|
|
|
|
|
|
|
Operating Data:
|
|
|
|
|
|
|
|
|
Fuel gallons sold (in thousands)
|
|
|
199,100
|
|
|
|
|
159,475
|
|
|
Fuel margin per gallon (1)
|
|
$
|
0.07
|
|
|
|
$
|
0.08
|
|
|
Lubricant sales
|
|
$
|
31,787
|
|
|
|
$
|
38,912
|
|
|
Lubricant margin (2)
|
|
|
8.9
|
%
|
|
|
|
11.4
|
%
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
|
2008
|
|
|
|
|
(In thousands, except per gallon data)
|
|
Net Sales:
|
|
|
|
|
|
|
|
Fuel sales
|
|
$
|
349,211
|
|
|
$
|
480,770
|
|
|
Excise taxes included in fuel sales
|
|
|
(56,714
|
)
|
|
|
(47,569
|
)
|
|
Lubricant sales
|
|
|
31,787
|
|
|
|
38,912
|
|
|
Other sales
|
|
|
6,727
|
|
|
|
3,462
|
|
|
Net sales
|
|
$
|
331,011
|
|
|
$
|
475,575
|
|
|
|
|
|
|
|
|
|
|
Cost of Products Sold:
|
|
|
|
|
|
|
|
Fuel cost of products sold
|
|
$
|
334,923
|
|
|
$
|
468,790
|
|
|
Excise taxes included in fuel sales
|
|
|
(56,714
|
)
|
|
|
(47,569
|
)
|
|
Lubricant cost of products sold
|
|
|
28,973
|
|
|
|
34,457
|
|
|
Other cost of products sold
|
|
|
2,488
|
|
|
|
2,352
|
|
|
Cost of products sold
|
|
$
|
309,670
|
|
|
$
|
458,030
|
|
|
|
|
|
|
|
|
|
|
Fuel margin per gallon (1)
|
|
$
|
0.07
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Fuel margin per gallon is a measurement calculated by dividing
the difference between fuel sales and cost of fuel sales for our
wholesale segment by the number of gallons sold.
(2) Lubricant margin is a measurement calculated by dividing the
difference between lubricant sales and lubricant cost of products
sold by lubricant sales. Lubricant margin is a measure frequently
used in the petroleum products wholesale industry to measure
operating results related to lubricant sales.
|
Source: Western Refining, Inc.
Western Refining, Inc.
Investor and Analyst Contact:
Mark
Cox, 915-534-1400
or
Media Contact:
Gary Hanson,
915-534-1400
|
