Murphy USA Inc. (NYSE: MUSA), a leading marketer of retail motor
fuel products and convenience merchandise, today announced
preliminary financial results for the three months ended March 31,
2023.
Key Highlights:
- Net income was $106.3 million, or $4.80 per diluted share, in
Q1 2023 compared to net income of $152.4 million, or $6.08 per
diluted share, in Q1 2022.
- Total fuel contribution (retail fuel margin plus product supply
and wholesale ("PS&W") results including RINs) for Q1 2023 was
28.9 cpg, compared to 34.0 cpg in Q1 2022.
- Total retail gallons increased 4.9% in Q1 2023 compared to Q1
2022, while volumes on a same store sales ("SSS") basis increased
1.4%.
- Merchandise contribution dollars for Q1 2023 increased 6.5% to
$187.1 million on average unit margins of 19.4%, compared to the
prior-year quarter contribution dollars of $175.7 million on unit
margins of 19.7%.
- During Q1 2023, the Company repurchased approximately 48.8
thousand common shares for $13.7 million at an average price of
$279.67 per share.
- Announced earlier today the Board's authorization of a new
share repurchase authorization of up to $1.5 billion to begin upon
the completion of the current $1 billion authorization and to be
executed by December 31, 2028.
- The Company recently published its initial Greenhouse Gas
Emissions (GHG) report for 2022 on the Investor Relations
website.
“Murphy USA performance was exceptional during the first
quarter, delivering results aligned with our high expectations and
future value creation potential,” said President and CEO Andrew
Clyde. “All-in fuel margins of 28.9 cents per gallon support our
view of structurally higher industry margins, and were complemented
by continued volume growth and share gains. Strong fuel performance
and robust customer traffic drove meaningful year-over-year growth
inside the stores, translating to strong merchandise performance.
With new investments underway to help better serve our customers
and grow future earnings, we believe the next five years of
high-return organic growth, strong fundamentals and resulting free
cash flow make a compelling case for continued share repurchase, as
evidenced by our announcement of a new up to $1.5 billion
authorization following the completion of our $1 billion program,
which we expect to finish in 2023.”
Consolidated Results
Three Months Ended
March 31,
Key Operating Metrics
2023
2022
Net income (loss) ($ Millions)
$
106.3
$
152.4
Earnings per share (diluted)
$
4.80
$
6.08
Adjusted EBITDA ($ Millions)
$
220.2
$
277.0
Net income and Adjusted EBITDA for Q1 2023 were lower versus the
prior-year period, due primarily to lower total fuel contribution
and increases in store operating expenses, general and
administrative expenses, and payment fees, which were partially
offset by higher overall merchandise contribution margins.
Fuel
Three Months Ended
March 31,
Key Operating Metrics
2023
2022
Total retail fuel contribution ($
Millions)
$
264.7
$
253.6
Total PS&W contribution ($
Millions)
(50.1
)
39.6
RINs (included in Other operating revenues
on Consolidated
Income Statement) ($ Millions)
115.3
76.6
Total fuel contribution ($ Millions)
$
329.9
$
369.8
Retail fuel volume - chain (Million
gal)
1,141.8
1,088.3
Retail fuel volume - per store (K gal
APSM)1
230.2
224.9
Retail fuel volume - per store (K gal
SSS)2
227.8
222.8
Total fuel contribution (including retail,
PS&W and RINs) (cpg)
28.9
34.0
Retail fuel margin (cpg)
23.2
23.3
PS&W including RINs contribution
(cpg)
5.7
10.7
1Average Per Store Month ("APSM") metric
includes all stores open through the date of calculation
22022 amounts not revised for 2023
raze-and-rebuild activity
Total fuel contribution dollars of $329.9 million decreased
$39.9 million, or 10.8%, in Q1 2023 compared to Q1 2022 due to
lower margins partially offset by higher retail volumes sold during
the period. Retail fuel contribution dollars increased $11.1
million, or 4.4%, to $264.7 million compared to Q1 2022 due to
higher volumes and sustained retail fuel margins. The increase was
driven by higher APSM retail volumes of 2.4% in Q1 2023 compared to
Q1 2022 while retail margins were similar to prior quarter at 23.2
cpg in Q1 2023. PS&W margins (including RINs) decreased $51.0
million when compared to Q1 2022, reflecting lower timing and
inventory pricing adjustments, higher RINs revenue, and an increase
in negative spot-to-rack margins.
Merchandise
Three Months Ended
March 31,
Key Operating Metrics
2023
2022
Total merchandise contribution ($
Millions)
$
187.1
$
175.7
Total merchandise sales ($ Millions)
$
966.2
$
892.0
Total merchandise sales ($K SSS)1,2
$
189.2
$
173.2
Merchandise unit margin (%)
19.4
%
19.7
%
Tobacco contribution ($K SSS)1,2
$
17.5
$
16.9
Non-tobacco contribution ($K SSS)1,2
$
19.5
$
16.0
Total merchandise contribution ($K
SSS)1,2
$
37.0
$
32.9
12022 amounts not revised for 2023
raze-and-rebuild activity
2Includes store-level discounts for Murphy
Drive Reward ("MDR") redemptions and excludes change in value of
unredeemed MDR points
Total merchandise contribution increased $11.4 million, or 6.5%,
to $187.1 million in Q1 2023 compared to the prior-year quarter due
primarily to higher unit sales volumes and retail prices. Total
tobacco contribution dollars in Q1 2023 increased 4.9% and
non-tobacco contribution dollars increased 9.0% compared to Q1
2022.
Other Areas
Three Months Ended
March 31,
Key Operating Metrics
2023
2022
Total store and other operating expenses
($ Millions)
$
238.3
$
222.7
Store OPEX excluding payment fees and rent
($K APSM)
$
31.1
$
29.5
Total SG&A cost ($ Millions)
$
59.0
$
46.2
Total store and other operating expenses were $15.6 million
higher in Q1 2023 versus Q1 2022, mainly due to employee related
expenses, store maintenance costs, and payment fees. Store OPEX
excluding payment fees and rent on an APSM basis were 5.4% higher
versus Q1 2022, primarily attributable to increased employee
related expenses, maintenance, and inventory shrink costs. Total
SG&A costs for Q1 2023 were $12.8 million higher than Q1 2022
primarily due to higher professional fees from business improvement
initiatives and increased employee incentive expenses.
Store Openings
The tables below reflect changes in our store portfolio in Q1
2023:
Net Change in Q1 2023
Murphy USA /
Express
QuickChek
Total
New-to-industry ("NTI")
7
1
8
Closed
—
—
—
Net change
7
1
8
Raze-and-rebuilds reopened in Q1*
2
—
2
Under Construction at End of Q1
NTI
4
4
8
Raze-and-rebuilds*
3
—
3
Total under construction at end of Q1
7
4
11
Store count at March 31, 2023*
1,562
158
1,720
*Store counts include raze-and-rebuild
stores
In April 2023, the Company completed and opened 4 of the 11
stores that were under construction at March 31, 2023.
Financial Resources
As of March 31,
Key Financial Metrics
2023
2022
Cash and cash equivalents ($ Millions)
$
102.1
$
356.2
Marketable securities, current ($
Millions)
$
13.5
$
—
Marketable securities, non-current ($
Millions)
$
4.4
$
—
Long-term debt, including capital lease
obligations ($ Millions)
$
1,789.4
$
1,797.4
Cash balances as of March 31, 2023 totaled $102.1 million, and
the Company also had total marketable securities of $17.9 million.
Long-term debt consisted of approximately $298.0 million in
carrying value of 5.625% senior notes due in 2027, $495.2 million
in carrying value of 4.75% senior notes due in 2029, $494.0 million
in carrying value of 3.75% senior notes due in 2031, and $382.0
million of term debt. In addition, the Company has approximately
$120.2 million in long-term capital leases. The revolving cash flow
facility was undrawn as of March 31, 2023.
Three Months Ended
March 31,
Key Financial Metric
2023
2022
Average shares outstanding (diluted) (in
thousands)
22,133
25,074
At March 31, 2023, the Company had common shares outstanding of
21,783,237. Common shares repurchased during the quarter were
approximately 48.8 thousand shares for $13.7 million, which were
purchased under the 2021 share repurchase plan. As of March 31,
2023, approximately $200.0 million remained available under the $1
billion 2021 plan.
As announced earlier today, the Company's Board of Directors
recently authorized a new share repurchase authorization of up to
$1.5 billion to begin upon completion of the current $1 billion
authorization and to be executed by December 31, 2028. The new
authorization reaffirms the Company's commitment to supplement
organic growth initiatives with shareholder distributions,
including our dividend growth plan, to maximize value creation over
time.
The effective income tax rate for Q1 2023 was 23.5% compared to
24.0% in Q1 2022.
The Company paid a quarterly cash dividend on March 1, 2023 of
$0.37 per share, or $1.48 per share on an annualized basis, a 5.7%
increase from the previous quarter for a total cash payment of $8.1
million.
2022 GHG Emissions Report
In keeping with the commitment we made to measure and report our
Scope 1 and Scope 2 greenhouse gas emissions, we are pleased to
announce that our 2022 GHG Emissions Report has been published and
is available on the Investor Relations website.
* * * * *
Earnings Call Information
The Company will host a conference call on May 3, 2023 at 10:00
a.m. Central Time to discuss first quarter 2023 results. The
conference call number is 1 (888) 330-2384 and the conference
number is 6680883. The earnings and investor related materials,
including reconciliations of any non-GAAP financial measures to
GAAP financial measures and any other applicable disclosures, will
be available on that same day on the investor section of the Murphy
USA website (http://ir.corporate.murphyusa.com). Approximately one
hour after the conclusion of the conference, the webcast will be
available for replay. Shortly thereafter, a transcript will be
available.
Source: Murphy USA Inc. (NYSE: MUSA)
Forward-Looking Statements
Certain statements in this news release contain or may suggest
“forward-looking” information (as defined in the Private Securities
Litigation Reform Act of 1995) that involve risk and uncertainties,
including, but not limited to our M&A activity, anticipated
store openings, fuel margins, merchandise margins, sales of RINs,
trends in our operations, dividends, and share repurchases. Such
statements are based upon the current beliefs and expectations of
the Company’s management and are subject to significant risks and
uncertainties. Actual future results may differ materially from
historical results or current expectations depending upon factors
including, but not limited to: The Company's ability to
successfully expand our food and beverage offerings; our ability to
continue to maintain a good business relationship with Walmart;
successful execution of our growth strategy, including our ability
to realize the anticipated benefits from such growth initiatives,
and the timely completion of construction associated with our newly
planned stores which may be impacted by the financial health of
third parties; our ability to effectively manage our inventory,
disruptions in our supply chain and our ability to control costs;
geopolitical events, that impact the supply and demand and price of
crude oil; the impact of severe weather events, such as hurricanes,
floods and earthquakes; the impact of a global health pandemic, the
impact of any systems failures, cybersecurity and/or security
breaches of the company or its vendor partners, including any
security breach that results in theft, transfer or unauthorized
disclosure of customer, employee or company information or our
compliance with information security and privacy laws and
regulations in the event of such an incident; successful execution
of our information technology strategy; reduced demand for our
products due to the implementation of more stringent fuel economy
and greenhouse gas reduction requirements, or increasingly
widespread adoption of electric vehicle technology; future tobacco
or e-cigarette legislation and any other efforts that make
purchasing tobacco products more costly or difficult could hurt our
revenues and impact gross margins; changes to the Company's capital
allocation, including the timing, declaration, amount and payment
of any future dividends or levels of the Company's share
repurchases, or management of operating cash; the market price of
the Company's stock prevailing from time to time, the nature of
other investment opportunities presented to the Company from time
to time, the Company's cash flows from operations, and general
economic conditions; compliance with debt covenants; availability
and cost of credit; and changes in interest rates. Our SEC reports,
including our most recent annual Report on Form 10-K and quarterly
report on Form 10-Q, contain other information on these and other
factors that could affect our financial results and cause actual
results to differ materially from any forward-looking information
we may provide. The Company undertakes no obligation to update or
revise any forward-looking statements to reflect subsequent events,
new information or future circumstances.
Murphy USA Inc.
Consolidated Statements of
Income
(Unaudited)
Three Months Ended
March 31,
(Millions of dollars, except share and per
share amounts)
2023
2022
Operating Revenues
Petroleum product sales1
$
3,994.2
$
4,148.4
Merchandise sales
966.2
892.0
Other operating revenues
116.8
78.0
Total operating revenues
5,077.2
5,118.4
Operating Expenses
Petroleum product cost of goods sold1
3,780.6
3,856.2
Merchandise cost of goods sold
779.1
716.3
Store and other operating expenses
238.3
222.7
Depreciation and amortization
56.4
55.4
Selling, general and administrative
59.0
46.2
Accretion of asset retirement
obligations
0.8
0.7
Acquisition and integration related
costs
—
0.2
Total operating expenses
4,914.2
4,897.7
Gain (loss) on sale of assets
(0.2
)
—
Income (loss) from operations
162.8
220.7
Other income (expense)
Investment income
0.8
—
Interest expense
(24.9
)
(19.6
)
Other nonoperating income (expense)
0.3
(0.7
)
Total other income (expense)
(23.8
)
(20.3
)
Income before income taxes
139.0
200.4
Income tax expense (benefit)
32.7
48.0
Net Income
$
106.3
$
152.4
Basic and Diluted Earnings Per Common
Share
Basic
$
4.89
$
6.18
Diluted
$
4.80
$
6.08
Weighted-average Common shares outstanding
(in thousands):
Basic
21,739
24,655
Diluted
22,133
25,074
Supplemental information:
1Includes excise taxes of:
$
544.8
$
514.1
Murphy USA Inc.
Segment Operating
Results
(Unaudited)
(Millions of dollars, except revenue per
same store sales (in thousands) and store counts)
Three Months Ended
March 31,
Marketing Segment
2023
2022
Operating Revenues
Petroleum product sales
$
3,994.2
$
4,148.4
Merchandise sales
966.2
892.0
Other operating revenues
116.7
77.9
Total operating revenues
5,077.1
5,118.3
Operating expenses
Petroleum products cost of goods sold
3,780.6
3,856.2
Merchandise cost of goods sold
779.1
716.3
Store and other operating expenses
238.2
222.7
Depreciation and amortization
52.4
51.7
Selling, general and administrative
59.0
46.2
Accretion of asset retirement
obligations
0.8
0.7
Total operating expenses
4,910.1
4,893.8
Gain (loss) on sale of assets
(0.2
)
—
Income (loss) from operations
166.8
224.5
Other income (expense)
Interest expense
(2.3
)
(2.2
)
Total other income (expense)
(2.3
)
(2.2
)
Income (loss) before income taxes
164.5
222.3
Income tax expense (benefit)
38.6
53.2
Net income (loss) from operations
$
125.9
$
169.1
Total tobacco sales revenue same store
sales1,2
$
119.6
$
113.9
Total non-tobacco sales revenue same store
sales1,2
69.6
59.3
Total merchandise sales revenue same store
sales1,2
$
189.2
$
173.2
12022 amounts not revised for 2023
raze-and-rebuild activity
2Includes store-level discounts for Murphy
Drive Reward ("MDR") redemptions and excludes change in value of
unredeemed MDR points
Store count at end of period
1,720
1,686
Total store months during the period
5,141
5,031
Same store sales information compared to APSM metrics
Variance from prior year
period
Three months ended
March 31, 2023
SSS1
APSM2
Fuel gallons per month
1.4
%
2.4
%
Merchandise sales
6.0
%
6.0
%
Tobacco sales
5.4
%
4.7
%
Non tobacco sales
7.2
%
8.6
%
Merchandise margin
5.0
%
4.2
%
Tobacco margin
4.2
%
2.7
%
Non tobacco margin
5.6
%
6.7
%
1Includes store-level discounts for MDR
redemptions and excludes change in value of unredeemed MDR
points
2Includes all MDR activity
Notes
Average Per Store Month (APSM) metric includes all stores open
through the date of the calculation, including stores acquired
during the period.
Same store sales (SSS) metric includes aggregated individual
store results for all stores open throughout both periods
presented. For all periods presented, the store must have been open
for the entire calendar year to be included in the comparison.
Remodeled stores that remained open or were closed for just a very
brief time (less than a month) during the period being compared
remain in the same store sales calculation. If a store is replaced
either at the same location (raze-and-rebuild) or relocated to a
new location, it will be excluded from the calculation during the
period it is out of service. Newly constructed stores do not enter
the calculation until they are open for each full calendar year for
the periods being compared (open by January 1, 2022 for the stores
being compared in the 2023 versus 2022 comparison). Acquired stores
are not included in the calculation of same store sales for the
first 12 months after the acquisition. When prior period same store
sales volumes or sales are presented, they have not been revised
for current year activity for raze-and-rebuilds and asset
dispositions.
QuickChek uses a weekly retail calendar where each quarter has
13 weeks. For Q1 2023, the QuickChek results cover the period from
December 31, 2022 to March 31, 2023. For Q1 2022, the QuickChek
results cover the period from January 1, 2022 to April 1, 2022. The
difference in the timing of the period ends is immaterial to the
overall consolidated results.
Murphy USA Inc.
Consolidated Balance
Sheets
(Millions of dollars, except share
amounts)
March 31, 2023
December 31, 2022
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
102.1
$
60.5
Marketable securities, current
13.5
17.9
Accounts receivable—trade, less allowance
for doubtful
accounts of $0.3 in 2023 and 2022,
respectively
264.7
281.7
Inventories, at lower of cost or
market
303.6
319.1
Prepaid expenses and other current
assets
27.4
47.6
Total current assets
711.3
726.8
Marketable securities, non-current
4.4
4.4
Property, plant and equipment, at cost
less accumulated depreciation and amortization of $1,602.5 and
$1,553.1 at 2023 and 2022, respectively
2,476.0
2,459.3
Operating lease right of use assets,
net
443.5
449.6
Intangible assets, net of amortization
140.3
140.4
Goodwill
328.0
328.0
Other assets
15.7
14.7
Total assets
$
4,119.2
$
4,123.2
Liabilities and Stockholders'
Equity
Current liabilities
Current maturities of long-term debt
$
14.7
$
15.0
Trade accounts payable and accrued
liabilities
754.2
839.2
Income taxes payable
3.1
—
Total current liabilities
772.0
854.2
Long-term debt, including capitalized
lease obligations
1,789.4
1,791.9
Deferred income taxes
334.1
327.4
Asset retirement obligations
43.9
43.3
Non-current operating lease
liabilities
439.2
444.2
Deferred credits and other liabilities
23.8
21.5
Total liabilities
3,402.4
3,482.5
Stockholders' Equity
Preferred Stock, par $0.01 (authorized
20,000,000 shares,
none outstanding)
—
—
Common Stock, par $0.01 (authorized
200,000,000 shares,
46,767,164 shares issued at 2023 and 2022,
respectively)
0.5
0.5
Treasury stock (24,983,927 and 25,017,324
shares held at
2023 and 2022, respectively)
(2,638.3
)
(2,633.3
)
Additional paid in capital (APIC)
501.7
518.9
Retained earnings
2,853.2
2,755.1
Accumulated other comprehensive income
(loss) (AOCI)
(0.3
)
(0.5
)
Total stockholders' equity
716.8
640.7
Total liabilities and stockholders'
equity
$
4,119.2
$
4,123.2
Murphy USA Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
Three Months Ended
March 31,
(Millions of dollars)
2023
2022
Operating Activities
Net income
$
106.3
$
152.4
Adjustments to reconcile net income (loss)
to net cash provided by operating activities
Depreciation and amortization
56.4
55.4
Deferred and noncurrent income tax charges
(benefits)
6.6
7.5
Accretion of asset retirement
obligations
0.8
0.7
(Gains) losses from sale of assets
0.2
—
Net (increase) decrease in noncash
operating working capital
(30.4
)
118.9
Other operating activities - net
9.8
4.3
Net cash provided (required) by operating
activities
149.7
339.2
Investing Activities
Property additions
(72.7
)
(64.0
)
Redemptions of marketable securities
4.5
—
Other investing activities - net
(0.8
)
(0.4
)
Net cash provided (required) by investing
activities
(69.0
)
(64.4
)
Financing Activities
Purchase of treasury stock
(13.7
)
(151.8
)
Dividends paid
(8.1
)
(7.2
)
Borrowings of debt
8.0
—
Repayments of debt
(11.8
)
(3.8
)
Amounts related to share-based
compensation
(13.5
)
(12.2
)
Net cash provided (required) by financing
activities
(39.1
)
(175.0
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
41.6
99.8
Cash, cash equivalents, and restricted
cash at beginning of period
60.5
256.4
Cash, cash equivalents, and restricted
cash at end of period
$
102.1
$
356.2
Supplemental Disclosure Regarding Non-GAAP Financial
Information
The following table sets forth the Company’s EBITDA and Adjusted
EBITDA for the three months ended March 31, 2023. EBITDA means net
income (loss) plus net interest expense, plus income tax expense,
depreciation and amortization, and Adjusted EBITDA adds back (i)
other non-cash items (e.g., impairment of properties and accretion
of asset retirement obligations) and (ii) other items that
management does not consider to be meaningful in assessing our
operating performance (e.g., (income) from discontinued operations,
net settlement proceeds, (gain) loss on sale of assets, loss on
early debt extinguishment, transaction and integration costs
related to acquisitions, and other non-operating (income) expense).
EBITDA and Adjusted EBITDA are not measures that are prepared in
accordance with U.S. generally accepted accounting principles
(GAAP).
We use Adjusted EBITDA in our operational and financial
decision-making, believing that the measure is useful to eliminate
certain items in order to focus on what we deem to be a more
reliable indicator of ongoing operating performance and our ability
to generate cash flow from operations. Adjusted EBITDA is also used
by many of our investors, research analysts, investment bankers,
and lenders to assess our operating performance. We believe that
the presentation of Adjusted EBITDA provides useful information to
investors because it allows understanding of a key measure that we
evaluate internally when making operating and strategic decisions,
preparing our annual plan, and evaluating our overall performance.
However, non-GAAP measures are not a substitute for GAAP
disclosures, and EBITDA and Adjusted EBITDA may be prepared
differently by us than by other companies using similarly titled
non-GAAP measures.
The reconciliation of net income (loss) to EBITDA and Adjusted
EBITDA is as follows:
Three Months Ended
March 31,
(Millions of dollars)
2023
2022
Net income
$
106.3
$
152.4
Income tax expense (benefit)
32.7
48.0
Interest expense, net of investment
income
24.1
19.6
Depreciation and amortization
56.4
55.4
EBITDA
$
219.5
$
275.4
Accretion of asset retirement
obligations
0.8
0.7
(Gain) loss on sale of assets
0.2
—
Acquisition related costs
—
0.2
Other nonoperating (income) expense
(0.3
)
0.7
Adjusted EBITDA
$
220.2
$
277.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230502006153/en/
Investor Contact: Christian Pikul Vice President,
Investor Relations and Financial Planning and Analysis
christian.pikul@murphyusa.com
Grafico Azioni Murphy USA (NYSE:MUSA)
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Da Mag 2024 a Giu 2024
Grafico Azioni Murphy USA (NYSE:MUSA)
Storico
Da Giu 2023 a Giu 2024