Company reports second quarter net income of $1.15 per diluted share
and adjusted net income of $1.17 per diluted share
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Aug. 8, 2012--
Delek US Holdings, Inc. (NYSE: DK), a diversified energy company with
assets in the petroleum refining, marketing and retail industries, today
announced financial results for the second quarter 2012.
For the three months ended June 30, 2012, Delek US reported net income
of $67.8 million, or $1.15 per diluted share, versus net income of $62.1
million, or $1.08 per diluted share in the second quarter 2011.
Excluding special items, the Company reported adjusted net income of
$69.0 million, or $1.17 per share, in the second quarter 2012. Adjusted
net income in the second quarter 2012 excludes $1.2 million of after tax
expense or $0.02 per diluted share, incurred in connection with the
potential initial public offering of our logistics assets. This compares
to adjusted net income of $52.9 million, or $0.92 per diluted share, in
the second quarter 2011.
Uzi Yemin, President and Chief Executive Officer of Delek US Holdings,
remarked: “Our Company continues to perform extremely well as all three
of our segments delivered year-over-year improvements in contribution
margin. In our refining segment, we were able to overcome challenges and
still post strong operating results. Our refineries' proximity to
increasing supplies of crude oil continues to provide us access to
higher volumes of cost advantaged WTI-linked crude oil. Additionally,
during the second quarter, we took strategic steps to create flexibility
to supply the El Dorado refinery with up to 15,000 barrels per day of
crude delivered via rail including heavy Canadian, Bakken and
mid-continent crudes. These steps, in addition to increased locally
sourced crude, supported our ability to average more than 137,000
barrels per day of combined throughput at our refineries during the
month of July."
The second quarter was positively impacted by the increase in the
benchmark Gulf Coast 5-3-2 crack spread, which averaged $25.42 per
barrel during the second quarter 2012, compared to $23.14 per barrel
during the same period last year. Overall, a lower crude price
environment and higher asphalt prices also contributed positively to
performance.
As of June 30, 2012, Delek US had a record cash balance of $321.1
million and total debt of $422.8 million. During the second quarter the
Company was able to reduce its net debt to $101.7 million as of June 30,
2012 compared to $310.9 million as of June 30, 2011.
Yemin concluded, “Several recent positive developments demonstrate the
strength of our businesses and the execution of our strategic
initiatives. First, we announced our third special dividend during the
last 14 months. Second, we filed a registration statement for the
initial public offering of our logistics assets. Finally, we completed
both of our previously announced 'quick hit' projects on time and under
budget. Both the LSR project at El Dorado and the VTB project at our
Tyler refinery were completed in July and should deliver incremental
cash flows in the future. With improved crude and feedstock flexibility
in our refining system, support of rail supplied crude and continued
increase in demand for our products, our outlook remains positive and we
are excited about our opportunities to deliver additional value to our
shareholders in the near and mid-term future.”
Refining Segment
Refining segment contribution margin increased to $133.2 million in the
second quarter 2012, versus $122.3 million in second quarter 2011.
During the second quarter 2012, the Tyler refinery generated $76.4
million in contribution margin, while the El Dorado refinery reported
$56.8 million in contribution margin.
The year-over-year improvement in segment contribution margin was
attributable to the inclusion of a full quarter of El Dorado results in
the Company's consolidated statement of operations, improved Gulf Coast
refined product margins, and an increase in asphalt pricing. In
addition, we benefited from our access to cost-advantaged domestic crude
sources, such as Midland sweet crude, which traded on average $4.86 per
barrel below the WTI Cushing benchmark during the second quarter of 2012.
Tyler, Texas Refinery
Total throughputs at the Tyler refinery were 56,729 barrels per day in
the second quarter 2012, versus 60,034 barrels per day in the second
quarter 2011. Total sales volumes were 58,644 barrels per day in the
second quarter 2012, compared to 60,140 barrels per day in the second
quarter 2011. The decreases were attributable to a temporary disruption
in operations following a power outage on May 7, 2012. The Tyler
refinery returned to full operations on May 26 and has processed an
average of over 60,000 barrels per day of crude since that time.
Direct operating expense was $31.3 million in the second quarter 2012,
versus $30.6 million in the second quarter 2011. This increase was due
to the maintenance costs related to the previously mentioned temporary
disruption in operations.
Tyler's refining margin, excluding intercompany product marketing fees,
was $20.87 per barrel sold in the second quarter 2012, compared to
$21.26 per barrel sold for the same quarter last year.
El Dorado, Arkansas Refinery
Total throughputs at the El Dorado refinery were 70,368 barrels per day
in the second quarter 2012. Total sales volumes were 83,254 barrels per
day, including 9,999 barrels per day of finished product buy/sell
activities.
Delek has operated the refinery at more than 70,000 barrels per day of
throughput during the quarter despite the temporary suspension of crude
oil deliveries from a supplier's pipeline, which has caused reduced
throughput rates since May 1, 2012. The Company was able to do so
through the combination of processing 3,868 barrels per day of
intermediate products from Tyler, sourcing additional local crude oil
and the introduction of crude supplied by rail.
Direct operating expense was $28.2 million in the second quarter 2012,
compared to $19.1 million during the 63 days we operated in the second
quarter of 2011.
El Dorado refining margin, excluding finished product buy/sell activity,
decreased to $12.74 per barrel compared to $13.71 per barrel sold during
the 63 days we operated in the second quarter of 2011.
Retail Segment
Retail segment contribution margin increased to $18.2 million in the
second quarter 2012, versus $14.6 million in the second quarter 2011.
Increases in fuel and merchandise same store sales and lower overall
operating expenses contributed to improved performance as compared to
second quarter 2011. Second quarter 2012 results were positively
impacted by same store merchandise sales growth of 4.3 percent, which
was supported by same store food service sales growth of 9.3 percent. In
addition, same store fuel gallons sold increased 2.2 percent as
declining fuel prices coincided with the peak driving season. The
merchandise margin was 29.7 percent and the fuel margin was 18.2 cents
per gallon for second quarter 2012.
At the conclusion of the second quarter 2012, the retail segment
operated 374 locations, versus 390 locations at the end of the second
quarter 2011.
Marketing Segment
Marketing segment contribution margin improved to $7.5 million in the
second quarter 2012, versus $5.1 million in the second quarter 2011. The
improved results were supported by an increase in total sales volumes of
4.5 percent, to 16,670 barrels per day, and the addition of bio-fuel
sales.
Reconciliation of GAAP to Non-GAAP Financial
Measures
Delek US reports its financial results in accordance with generally
accepted accounting principles (GAAP). However, management believes that
certain non-GAAP performance measures may provide users of financial
information (i) increased transparency into the Company's operations;
and (ii) additional meaningful comparisons between current results and
results in prior operating periods. For these reasons, management is
presenting certain adjustments to GAAP results in order to reflect the
ongoing operations of the business. Management believes these measures
will help investors better understand and evaluate the Company.
Delek US provides the following reconciliation schedule in calculating
“adjusted” net income from operations, a non-GAAP measure.
The following item(s) are excluded in the calculation of adjusted net
income from operations for the three months ended June 30, 2012 and June
30, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2012
|
|
|
|
|
Pre-Tax
|
|
After-Tax
|
|
After Tax EPS
|
|
$ in Millions (Except EPS)
|
|
|
Income
|
|
Income
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
104.4
|
|
|
$
|
67.8
|
|
|
$
|
1.15
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Loss:
|
|
|
|
|
|
|
|
|
Transaction costs for potential IPO
|
|
|
1.8
|
|
|
1.2
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Total
|
|
|
$
|
106.2
|
|
|
$
|
69.0
|
|
|
$
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2011
|
|
|
|
|
Pre-Tax
|
|
After-Tax
|
|
After Tax EPS
|
|
$ in Millions (Except EPS)
|
|
|
Income
|
|
Income
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
93.5
|
|
|
$
|
62.1
|
|
|
$
|
1.08
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
|
Gain on investment in Lion Oil (Other)
|
|
|
(9.2
|
)
|
|
(9.2
|
)
|
|
(0.16
|
)
|
|
Adjusted Total
|
|
|
$
|
84.3
|
|
|
$
|
52.9
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter 2012 Results | Conference Call
Information
The Company will hold a conference call to discuss its second quarter
2012 results on August 8, 2012 at 10:00 a.m. Central Time. Investors
will have the opportunity to listen to the conference call live over the
Internet by going to www.DelekUS.com
and clicking on the Investor Relations tab, at least 15 minutes early to
register, download and install any necessary software. For those who
cannot listen to the live broadcast, a telephonic replay will be
available through November 8, 2012 by dialing (855) 859-2056, passcode
97669346. An archived version of the replay will also be available at www.DelekUS.com
for 90 days.
About Delek US Holdings, Inc.
Delek US Holdings, Inc. is an integrated downstream energy business
focused on petroleum refining, the wholesale distribution of refined
products and convenience store retailing. The refining segment consists
of refineries operated in Tyler, Texas and El Dorado, Arkansas with a
combined nameplate production capacity of 140,000 barrels per day. The
marketing and supply segment markets refined products through a series
of owned and third-party product terminals and pipelines. The retail
segment supplies fuels and merchandise through a network of
approximately 374 company-operated convenience store locations operated
under the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food and Fuel™,
Favorite Markets®, Delta Express® and Discount Food Mart™ brand names.
Safe Harbor Provisions Regarding
Forward-Looking Statements
This press release contains forward-looking statements that are based
upon current expectations and involve a number of risks and
uncertainties. Statements concerning our current estimates, expectations
and projections about our future results, performance, prospects and
opportunities and other statements, concerns, or matters that are not
historical facts are “forward-looking statements,” as that term is
defined under the federal securities laws.
Investors are cautioned that the following important factors, among
others, may affect these forward-looking statements. These factors
include but are not limited to: risks and uncertainties with the respect
to the quantities and costs of crude oil, the costs to acquire
feedstocks and the price of the refined petroleum products we ultimately
sell; management's ability to execute its strategy through acquisitions
and transactional risks in acquisitions; our competitive position and
the effects of competition; the projected growth of the industry in
which we operate; changes in the scope, costs, and/or timing of capital
projects; losses from derivative instruments; general economic and
business conditions, particularly levels of spending relating to travel
and tourism or conditions affecting the southeastern United States;
potential conflicts of interest between our majority stockholder and
other stockholders; and other risks contained in our filings with the
United States Securities and Exchange Commission.
Forward-looking statements should not be read as a guarantee of future
performance or results and will not be accurate indications of the times
at, or by which such performance or results will be achieved.
Forward-looking information is based on information available at the
time and/or management's good faith belief with respect to future
events, and is subject to risks and uncertainties that could cause
actual performance or results to differ materially from those expressed
in the statements. Delek US undertakes no obligation to update or revise
any such forward-looking statements.
On July 12, 2012, our wholly-owned indirect subsidiary, Delek Logistics
Partners, LP, filed a registration statement on Form S-1 with the U.S.
Securities and Exchange Commission (“SEC”) relating to its proposed
initial public offering of common units representing limited partner
interests. Because no such registration statement has become effective,
we will not discuss this proposed offering during our conference call to
discuss this earnings press release. These securities may not be sold
nor may offers to buy be accepted prior to the time the registration
statement becomes effective. Neither this statement nor anything in this
press release shall constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of these securities in any
state or jurisdiction in which such an offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction.
|
|
|
|
|
|
|
|
|
Delek US Holdings, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2012
|
|
|
December 31,
2011
|
|
|
|
|
(In millions, except share
and per share data)
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
321.1
|
|
|
|
$
|
225.9
|
|
|
Accounts receivable
|
|
|
269.8
|
|
|
|
277.1
|
|
|
Inventory
|
|
|
364.2
|
|
|
|
508.0
|
|
|
Other current assets
|
|
|
22.9
|
|
|
|
39.6
|
|
|
Total current assets
|
|
|
978.0
|
|
|
|
1,050.6
|
|
|
Property, plant and equipment:
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
1,387.5
|
|
|
|
1,317.3
|
|
|
Less: accumulated depreciation
|
|
|
(298.7
|
)
|
|
|
(263.5
|
)
|
|
Property, plant and equipment, net
|
|
|
1,088.8
|
|
|
|
1,053.8
|
|
|
Goodwill
|
|
|
69.7
|
|
|
|
69.7
|
|
|
Other intangibles, net
|
|
|
15.3
|
|
|
|
17.5
|
|
|
Other non-current assets
|
|
|
36.2
|
|
|
|
39.0
|
|
|
Total assets
|
|
|
$
|
2,188.0
|
|
|
|
$
|
2,230.6
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
481.2
|
|
|
|
$
|
521.1
|
|
|
Current portion of long-term debt and capital lease obligations
|
|
|
101.4
|
|
|
|
68.2
|
|
|
Current portion of notes payable to related party
|
|
|
10.5
|
|
|
|
6.0
|
|
|
Obligation under Supply and Offtake Agreement
|
|
|
173.4
|
|
|
|
298.6
|
|
|
Accrued expenses and other current liabilities
|
|
|
125.3
|
|
|
|
100.8
|
|
|
Total current liabilities
|
|
|
891.8
|
|
|
|
994.7
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
Long-term debt and capital lease obligations, net of current portion
|
|
|
276.9
|
|
|
|
297.9
|
|
|
Notes payable to related party
|
|
|
34.0
|
|
|
|
60.5
|
|
|
Environmental liabilities, net of current portion
|
|
|
9.3
|
|
|
|
9.7
|
|
|
Asset retirement obligations
|
|
|
8.1
|
|
|
|
7.9
|
|
|
Deferred tax liabilities
|
|
|
178.7
|
|
|
|
168.1
|
|
|
Other non-current liabilities
|
|
|
32.2
|
|
|
|
38.2
|
|
|
Total non-current liabilities
|
|
|
539.2
|
|
|
|
582.3
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no
shares issued and outstanding
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, $0.01 par value, 110,000,000 shares authorized,
58,381,124 shares and 58,036,427 shares issued and outstanding at
June 30, 2012 and December 31, 2011, respectively
|
|
|
0.6
|
|
|
|
0.6
|
|
|
Additional paid-in capital
|
|
|
357.9
|
|
|
|
356.9
|
|
|
Accumulated other comprehensive income
|
|
|
—
|
|
|
|
1.8
|
|
|
Retained earnings
|
|
|
398.5
|
|
|
|
294.1
|
|
|
Non-controlling interest in subsidiaries
|
|
|
—
|
|
|
|
0.2
|
|
|
Total shareholders’ equity
|
|
|
757.0
|
|
|
|
653.6
|
|
|
Total liabilities and shareholders’ equity
|
|
|
$
|
2,188.0
|
|
|
|
$
|
2,230.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings, Inc.
Condensed Consolidated Statements of Income (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
(Revised)
|
|
|
|
|
|
|
(Revised)
|
|
|
|
|
(In millions, except share and per share data)
|
|
Net sales
|
|
|
$
|
2,134.2
|
|
|
$
|
1,848.7
|
|
|
|
$
|
4,304.6
|
|
|
$
|
2,992.2
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
1,881.1
|
|
|
|
1,621.0
|
|
|
|
|
3,836.1
|
|
|
|
2,635.2
|
|
|
Operating expenses
|
|
|
|
90.1
|
|
|
|
83.2
|
|
|
|
|
174.5
|
|
|
|
143.4
|
|
|
General and administrative expenses
|
|
|
|
24.7
|
|
|
|
24.8
|
|
|
|
|
51.7
|
|
|
|
43.1
|
|
|
Depreciation and amortization
|
|
|
|
21.6
|
|
|
|
19.0
|
|
|
|
|
40.6
|
|
|
|
33.9
|
|
|
Loss on sale of assets
|
|
|
|
—
|
|
|
|
1.4
|
|
|
|
|
—
|
|
|
|
2.0
|
|
|
Total operating costs and expenses
|
|
|
|
2,017.5
|
|
|
|
1,749.4
|
|
|
|
|
4,102.9
|
|
|
|
2,857.6
|
|
|
Operating income
|
|
|
|
116.7
|
|
|
|
99.3
|
|
|
|
|
201.7
|
|
|
|
134.6
|
|
|
Interest expense
|
|
|
|
12.3
|
|
|
|
15.0
|
|
|
|
|
24.7
|
|
|
|
22.3
|
|
|
Gain on investment in Lion Oil
|
|
|
|
—
|
|
|
|
(9.2
|
)
|
|
|
|
—
|
|
|
|
(9.2
|
)
|
|
Total non-operating expenses
|
|
|
|
12.3
|
|
|
|
5.8
|
|
|
|
|
24.7
|
|
|
|
13.1
|
|
|
Income before income taxes
|
|
|
|
104.4
|
|
|
|
93.5
|
|
|
|
|
177.0
|
|
|
|
121.5
|
|
|
Income tax expense
|
|
|
|
36.6
|
|
|
|
29.4
|
|
|
|
|
63.0
|
|
|
|
40.5
|
|
|
Net income
|
|
|
|
67.8
|
|
|
|
64.1
|
|
|
|
|
114.0
|
|
|
|
81.0
|
|
|
Net income attributed to non-controlling interest
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
|
—
|
|
|
|
2.0
|
|
|
Net income attributable to Delek
|
|
|
$
|
67.8
|
|
|
$
|
62.1
|
|
|
|
$
|
114.0
|
|
|
$
|
79.0
|
|
|
Basic earnings per share
|
|
|
$
|
1.16
|
|
|
$
|
1.09
|
|
|
|
$
|
1.96
|
|
|
$
|
1.43
|
|
|
Diluted earnings per share
|
|
|
$
|
1.15
|
|
|
$
|
1.08
|
|
|
|
$
|
1.93
|
|
|
$
|
1.42
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
58,239,476
|
|
|
|
56,788,169
|
|
|
|
|
58,178,743
|
|
|
|
55,364,685
|
|
|
Diluted
|
|
|
|
59,175,544
|
|
|
|
57,263,271
|
|
|
|
|
58,951,436
|
|
|
|
55,634,896
|
|
|
Dividends declared per common share outstanding
|
|
|
$
|
0.1375
|
|
|
$
|
0.0375
|
|
|
|
$
|
0.2650
|
|
|
$
|
0.0750
|
|
|
Adjusted diluted earnings per share
|
|
|
$
|
1.17
|
|
|
$
|
0.92
|
|
|
|
$
|
1.95
|
|
|
$
|
1.25
|
|
|
|
|
Delek US Holdings, Inc.
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
Cash Flow Data
|
|
|
|
|
(Revised)
|
|
Cash flows provided by operating activities:
|
|
|
$
|
190.5
|
|
|
$
|
(105.0
|
)
|
|
Cash flows used in investing activities:
|
|
|
(77.8
|
)
|
|
(103.7
|
)
|
|
Cash flows provided by (used in) financing activities:
|
|
|
(17.5
|
)
|
|
307.8
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
$
|
95.2
|
|
|
$
|
99.1
|
|
|
Delek US Holdings, Inc.
|
|
Segment Data
|
|
(In millions)
|
|
|
|
|
Three Months Ended June 30, 2012
|
|
|
|
|
Refining
|
|
Retail
|
|
Marketing
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
|
Net sales (excluding intercompany fees and sales)
|
|
|
$
|
1,455.3
|
|
|
$
|
486.6
|
|
|
$
|
193.1
|
|
|
$
|
(0.8
|
)
|
|
$
|
2,134.2
|
|
Intercompany fees and sales
|
|
|
36.9
|
|
|
—
|
|
|
65.7
|
|
|
(102.6
|
)
|
|
—
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
1,299.5
|
|
|
436.7
|
|
|
249.1
|
|
|
(104.2
|
)
|
|
1,881.1
|
|
Operating expenses
|
|
|
59.5
|
|
|
31.7
|
|
|
2.2
|
|
|
(3.3
|
)
|
|
90.1
|
|
Segment contribution margin
|
|
|
$
|
133.2
|
|
|
$
|
18.2
|
|
|
$
|
7.5
|
|
|
$
|
4.1
|
|
|
163.0
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
|
24.7
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
21.6
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
$
|
116.7
|
|
Total assets
|
|
|
$
|
1,505.1
|
|
|
$
|
416.7
|
|
|
$
|
175.9
|
|
|
$
|
90.3
|
|
|
$
|
2,188.0
|
|
Capital spending (excluding business combinations)
|
|
|
$
|
19.3
|
|
|
$
|
7.6
|
|
|
$
|
0.1
|
|
|
$
|
2.7
|
|
|
$
|
29.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2011
|
|
|
|
|
Refining
|
|
Retail
|
|
Marketing
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
|
|
|
|
(Revised)
|
|
|
|
|
|
|
|
|
|
Net sales (excluding intercompany fees and sales)
|
|
|
$
|
1,161.4
|
|
|
$
|
496.9
|
|
|
$
|
190.4
|
|
|
$
|
—
|
|
|
$
|
1,848.7
|
|
Intercompany fees and sales
|
|
|
5.1
|
|
|
—
|
|
|
5.4
|
|
|
(10.5
|
)
|
|
—
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
994.5
|
|
|
447.7
|
|
|
189.2
|
|
|
(10.4
|
)
|
|
1,621.0
|
|
Operating expenses
|
|
|
49.7
|
|
|
34.6
|
|
|
1.5
|
|
|
(2.6
|
)
|
|
83.2
|
|
Segment contribution margin
|
|
|
$
|
122.3
|
|
|
$
|
14.6
|
|
|
$
|
5.1
|
|
|
$
|
2.5
|
|
|
144.5
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
|
24.8
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
19.0
|
|
Loss on sale of assets
|
|
|
|
|
|
|
|
|
|
|
1.4
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
$
|
99.3
|
|
Total assets
|
|
|
$
|
1,487.2
|
|
|
$
|
406.0
|
|
|
$
|
88.5
|
|
|
$
|
51.1
|
|
|
$
|
2,032.8
|
|
Capital spending (excluding business combinations)
|
|
|
$
|
5.5
|
|
|
$
|
8.0
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
13.6
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2012
|
|
|
|
|
Refining
|
|
Retail
|
|
Marketing
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
|
Net sales (excluding intercompany fees and sales)
|
|
|
$
|
2,993.1
|
|
|
$
|
931.8
|
|
|
$
|
380.6
|
|
|
$
|
(0.9
|
)
|
|
$
|
4,304.6
|
|
Intercompany fees and sales
|
|
|
84.8
|
|
|
—
|
|
|
113.4
|
|
|
(198.2
|
)
|
|
—
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
2,714.5
|
|
|
844.2
|
|
|
474.5
|
|
|
(197.1
|
)
|
|
3,836.1
|
|
Operating expenses
|
|
|
114.2
|
|
|
62.1
|
|
|
3.9
|
|
|
(5.7
|
)
|
|
174.5
|
|
Segment contribution margin
|
|
|
$
|
249.2
|
|
|
$
|
25.5
|
|
|
$
|
15.6
|
|
|
$
|
3.7
|
|
|
294.0
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
|
51.7
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
40.6
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
$
|
201.7
|
|
Capital spending (excluding business combinations)
|
|
|
$
|
34.0
|
|
|
$
|
11.2
|
|
|
$
|
0.4
|
|
|
$
|
4.8
|
|
|
$
|
50.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2011
|
|
|
|
|
Refining
|
|
Retail
|
|
Marketing
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
|
|
|
|
(Revised)
|
|
|
|
|
|
|
|
|
|
Net sales (excluding intercompany fees and sales)
|
|
|
$
|
1,736.6
|
|
|
$
|
911.1
|
|
|
$
|
344.5
|
|
|
$
|
—
|
|
|
$
|
2,992.2
|
|
Intercompany fees and sales
|
|
|
10.4
|
|
|
—
|
|
|
10.4
|
|
|
(20.8
|
)
|
|
—
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
1,491.4
|
|
|
823.1
|
|
|
339.0
|
|
|
(18.3
|
)
|
|
2,635.2
|
|
Operating expenses
|
|
|
79.0
|
|
|
66.9
|
|
|
2.5
|
|
|
(5.0
|
)
|
|
143.4
|
|
Segment contribution margin
|
|
|
$
|
176.6
|
|
|
$
|
21.1
|
|
|
$
|
13.4
|
|
|
$
|
2.5
|
|
|
213.6
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
|
43.1
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
33.9
|
|
Loss on sale of assets
|
|
|
|
|
|
|
|
|
|
|
2.0
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
$
|
134.6
|
|
Capital spending (excluding business combinations)
|
|
|
$
|
9.0
|
|
|
$
|
16.2
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
25.6
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Tyler Refinery
|
|
|
|
|
|
|
|
|
|
|
Days operated in period
|
|
|
91
|
|
|
91
|
|
|
182
|
|
|
181
|
|
Total sales volume (average barrels per day)(1)
|
|
|
58,644
|
|
|
60,140
|
|
|
57,742
|
|
|
59,205
|
|
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
|
30,043
|
|
|
31,957
|
|
|
30,574
|
|
|
31,830
|
|
Diesel/Jet
|
|
|
21,752
|
|
|
22,371
|
|
|
20,875
|
|
|
22,138
|
|
Petrochemicals, LPG, NGLs
|
|
|
2,293
|
|
|
2,302
|
|
|
2,197
|
|
|
2,050
|
|
Other
|
|
|
1,829
|
|
|
2,402
|
|
|
1,966
|
|
|
2,423
|
|
Total production
|
|
|
55,917
|
|
|
59,032
|
|
|
55,612
|
|
|
58,441
|
|
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
|
|
Crude oil
|
|
|
54,758
|
|
|
56,015
|
|
|
52,797
|
|
|
54,822
|
|
Other feedstocks
|
|
|
1,971
|
|
|
4,019
|
|
|
3,330
|
|
|
4,430
|
|
Total throughput
|
|
|
56,729
|
|
|
60,034
|
|
|
56,127
|
|
|
59,252
|
|
Per barrel of sales:
|
|
|
|
|
|
|
|
|
|
|
Tyler refining margin
|
|
|
$
|
20.21
|
|
|
$
|
20.75
|
|
|
$
|
19.85
|
|
|
$
|
18.39
|
|
Tyler refining margin excluding intercompany marketing service fee
|
|
|
$
|
20.87
|
|
|
$
|
21.26
|
|
|
$
|
20.46
|
|
|
$
|
18.90
|
|
Direct operating expenses
|
|
|
$
|
5.88
|
|
|
$
|
5.60
|
|
|
$
|
5.75
|
|
|
$
|
5.59
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
(Revised)
|
|
|
|
(Revised)
|
|
El Dorado Refinery
|
|
|
|
|
|
|
|
|
|
|
Days operated in period
|
|
|
91
|
|
|
63
|
|
|
182
|
|
|
63
|
|
Total sales volume (average barrels per day)(1)
|
|
|
83,254
|
|
|
67,822
|
|
|
84,132
|
|
|
67,822
|
|
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
|
31,938
|
|
|
27,832
|
|
|
32,524
|
|
|
27,832
|
|
Diesel
|
|
|
26,398
|
|
|
23,448
|
|
|
28,008
|
|
|
23,448
|
|
Petrochemicals, LPG, NGLs
|
|
|
1,289
|
|
|
1,265
|
|
|
1,355
|
|
|
1,265
|
|
Asphalt
|
|
|
7,900
|
|
|
11,753
|
|
|
9,986
|
|
|
11,753
|
|
Other
|
|
|
1,668
|
|
|
2,521
|
|
|
1,694
|
|
|
2,521
|
|
Total production
|
|
|
69,193
|
|
|
66,819
|
|
|
73,567
|
|
|
66,819
|
|
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
|
|
Crude oil
|
|
|
63,230
|
|
|
61,363
|
|
|
67,883
|
|
|
61,363
|
|
Other feedstocks
|
|
|
7,138
|
|
|
6,387
|
|
|
6,547
|
|
|
6,387
|
|
Total throughput
|
|
|
70,368
|
|
|
67,750
|
|
|
74,430
|
|
|
67,750
|
|
Per barrel of sales:
|
|
|
|
|
|
|
|
|
|
|
El Dorado refining margin
|
|
|
$
|
11.21
|
|
|
$
|
13.71
|
|
|
$
|
10.11
|
|
|
$
|
13.71
|
|
Direct operating expenses
|
|
|
$
|
3.72
|
|
|
$
|
4.46
|
|
|
$
|
3.51
|
|
|
$
|
4.46
|
|
Pricing statistics (average for the period presented):
|
|
|
|
|
|
|
|
|
|
|
WTI — Cushing crude oil (per barrel)
|
|
|
$
|
93.49
|
|
|
$
|
102.54
|
|
|
$
|
98.19
|
|
|
$
|
98.42
|
|
Mars crude oil (per barrel)(2)
|
|
|
$
|
104.30
|
|
|
$
|
108.51
|
|
|
$
|
109.69
|
|
|
$
|
108.51
|
|
US Gulf Coast 5-3-2 crack spread (per barrel)
|
|
|
$
|
25.42
|
|
|
$
|
23.14
|
|
|
$
|
24.65
|
|
|
$
|
20.35
|
|
US Gulf Coast Unleaded Gasoline (per gallon)
|
|
|
$
|
2.80
|
|
|
$
|
2.98
|
|
|
$
|
2.87
|
|
|
$
|
2.79
|
|
Ultra low sulfur diesel (per gallon)
|
|
|
$
|
2.94
|
|
|
$
|
3.08
|
|
|
$
|
3.05
|
|
|
$
|
2.96
|
|
Natural gas (per MMBTU)
|
|
|
$
|
2.29
|
|
|
$
|
4.36
|
|
|
$
|
2.36
|
|
|
$
|
4.27
|
|
|
|
|
|
|
|
Marketing Segment
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Days operated in period
|
|
91
|
|
|
91
|
|
|
182
|
|
|
181
|
|
Products sold (average barrels per day):
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
7,473
|
|
|
6,647
|
|
|
7,106
|
|
|
6,358
|
|
Diesel
|
|
9,116
|
|
|
9,234
|
|
|
8,849
|
|
|
8,839
|
|
Other
|
|
81
|
|
|
65
|
|
|
71
|
|
|
47
|
|
Total sales
|
|
16,670
|
|
|
15,946
|
|
|
16,026
|
|
|
15,244
|
|
|
|
|
|
|
|
Retail Segment
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Number of stores (end of period)
|
|
374
|
|
|
390
|
|
|
374
|
|
|
390
|
|
|
Average number of stores
|
|
372
|
|
|
397
|
|
|
375
|
|
|
403
|
|
|
Retail fuel sales (thousands of gallons)
|
|
103,411
|
|
|
103,028
|
|
|
197,117
|
|
|
199,431
|
|
|
Average retail gallons per average number of stores (in thousands)
|
|
278
|
|
|
260
|
|
|
526
|
|
|
495
|
|
|
Retail fuel margin ($ per gallon)
|
|
$
|
0.182
|
|
|
$
|
0.186
|
|
|
$
|
0.153
|
|
|
$
|
0.157
|
|
|
Merchandise sales (in thousands)
|
|
$
|
98,871
|
|
|
$
|
97,307
|
|
|
$
|
187,757
|
|
|
$
|
183,426
|
|
|
Merchandise sales per average number of stores (in thousands)
|
|
$
|
266
|
|
|
$
|
245
|
|
|
$
|
501
|
|
|
$
|
455
|
|
|
Merchandise margin %
|
|
29.7
|
%
|
|
30.2
|
%
|
|
29.6
|
%
|
|
30.5
|
%
|
|
Credit expense (% of gross margin)
|
|
10.7
|
%
|
|
11.5
|
%
|
|
11.5
|
%
|
|
11.7
|
%
|
|
Operating expense/merchandise sales plus total gallons
|
|
15.1
|
%
|
|
16.7
|
%
|
|
15.5
|
%
|
|
16.9
|
%
|
|
Change in same store fuel gallons sold
|
|
2.2
|
%
|
|
(1.3
|
)%
|
|
1.6
|
%
|
|
(1.8
|
)%
|
|
Change in same store merchandise sales
|
|
4.3
|
%
|
|
0.6
|
%
|
|
5.9
|
%
|
|
2.3
|
%
|
(1) Sales volume includes 3,184 bpd and 3,523 bpd sold to the marketing
and retail segments during the three and six months ended June 30, 2012
and 902 bpd and 1,320 bpd during the three and six months ended June 30,
2011, respectively.
(2) Average for the period April 29, 2011 through June 30, 2011.
Source: Delek US Holdings, Inc.
U.S. Investor / Media Relations Contact:
Delek US Holdings, Inc.
Assi
Ginzburg, 615-224-1158
Executive Vice President
or
Alpha
IR Group
Chris Hodges, 312-589-3505
Founder & CEO
|
