Delek US Holdings Reports Financial Results

Mapco-Cross-Plains-3-cropTen new large-format stores were opened during 2013, including four during the fourth quarter.  

Delek US Holdings Inc., a diversified energy company with assets in the petroleum refining, logistics and retail industries, announced financial results for the fourth quarter and full-year 2013.

For the three months ended Dec. 31, 2013, Delek US reported a fourth quarter net loss of $(4.7) million, or $(0.08) per basic share, versus net income of $64.3 million, or $1.06 per diluted share, in the fourth quarter 2012.

For the fourth quarter 2013, the decrease in earnings compared to the prior year period is primarily attributable to the refining segment. This segment faced less favorable market conditions as the benchmark Gulf Coast 5-3-2 crack spread declined year-over-year. Also, results were negatively impacted by approximately $6.8 million after tax of special items that consisted primarily of additional general and administrative expenses and turnaround related activity. For the fourth quarter 2013, the company incurred a higher income tax expense, which resulted in an annual effective tax rate of approximately 37.6%, when adjusted for minority interest.

For the full year 2013, Delek US reported net income of $117.7 million, or $1.96 per diluted share, versus net income of $272.8 million, or $4.57 per diluted share in 2012.

“We faced a range of market conditions during 2013, from a strong first half of the year to a much more challenging second half,” said Uzi Yemin, chairman, president and CEO of Delek US. “While markets have continued to change, our focus has remained on the execution of our strategy to increase flexibility as well as the continued growth of our company. As a result of this focus, we achieved record annual crude throughput at the Tyler refinery, unlocked additional value in and expanded our logistics assets, while returning a record amount of cash to our shareholders through increased dividends and share repurchases. During the fourth quarter, we completed a planned partial turnaround at our Tyler refinery, opened four large format stores and acquired a terminal in our logistics segment.”

Retail Segment
The retail segment markets motor fuel and convenience merchandise through a network of approximately 361 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.

Retail segment contribution margin was $7.1 million in the fourth quarter 2013. This compares with fourth quarter 2012 results of $8.7 million. Higher fuel margins were offset by lower merchandising margins and higher operating costs on a year-over-year basis. Merchandising margin decreased to 28.0% in fourth quarter 2013, compared to 29.6% in the same prior year period. Fuel margin increased to 14.2 cents per gallon in the fourth quarter 2013 from 13.8 cents per gallon in the prior year period. Operating expenses were $33.6 million compared to $32.0 million in the fourth quarter 2012.

At the conclusion of the fourth quarter 2013, the retail segment operated 361 locations, versus 373 locations at the end of the fourth quarter 2012. Ten new large-format stores were opened during 2013 including four during the fourth quarter. An additional 10-15 large-format stores are expected to be opened during 2014.

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