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Delek US Holdings, Inc. Announces Record First Quarter 2007 Results
    --  Net Income Increases 62% Over Last Year

    --  Merchandise Margin of 32.5%

    --  Sour Crude Comprises 5% of Refinery Crude Throughput

BRENTWOOD, Tenn.--(BUSINESS WIRE)--May 10, 2007--Delek US Holdings, Inc. (NYSE: DK) today reported net income of $20.9 million, or $0.40 per diluted share, for the first quarter 2007 compared to $12.9 million, or $0.33 per diluted share for the first quarter 2006.

Uzi Yemin, President and Chief Executive Officer of Delek US, remarked, "We are pleased to report record first quarter earnings which built on the momentum of the strong operating performance in 2006. Achievements during the quarter included a record merchandise margin of 32.5% in our retail segment and the processing of over 2,500 barrels per day of West Texas sour crude at the Tyler refinery."

Refining Segment: The refining segment contribution margin was $36.0 million for the first quarter of 2007 compared to $25.4 million for the first quarter of 2006. Net sales for the quarter were $353.9 million compared to $362.1 million for the same period last year. The refinery operating gross margin excluding inter-company marketing fees of $0.56 per barrel was $11.23 per barrel sold. Delek exceeded the U.S. Gulf Coast crack spread of $9.85 by $1.38 per barrel. This compares to a refinery operating gross margin of $8.81 per barrel sold, which was $0.68 above of the U.S. Gulf Coast 5-3-2 crack spread, for the same quarter of 2006.

During the quarter, total barrels sold were 55,851 barrels per day compared to 54,267 barrels a day for the same quarter last year, while total throughput was 57,313 barrels per day compared to 59,624 barrels per day for the same quarter last year. Total throughput was impacted by mid-cycle maintenance the refinery performed during the first quarter. Direct operating expenses for the quarter were $3.52 per barrel sold compared to $3.62 per barrel sold for the first quarter of 2006.

Retail Segment: The retail segment contribution margin was $11.9 million for the first quarter of 2007 compared to $10.4 million for the first quarter 2006. Net sales for the quarter were $331.0 million, an increase of 11% compared to the first quarter last year.

Merchandise sales for the quarter increased 12.4% to $81.8 million compared to $72.8 million for the first quarter of 2006, supported by a same store sales increase of 1.7%. The merchandise margin in the first quarter was a record 32.5% and represented a 200 basis point increase from the same quarter last year. This increase was driven in part by the 5.5% increase in the food and fountain service category same store sales.

The retail segment's retail fuel sales for the first quarter of 2007 increased 11.4% to $232.1 million from $208.4 million for the same quarter of 2006, primarily due to a 13.6% increase in retail gallons sold to nearly 102.5 million.

Marketing Segment: The marketing segment contribution margin was $5.9 million for the first quarter of 2007. Net sales were $120.7 million, including $2.8 million of inter-company marketing fees and sales from the refinery segment on total sales volume of approximately 17,000 barrels per day.

Acquisition Update: During April, we completed the purchase of 101 of the 107 Favorite Markets stores. The Company is working toward the closing of the remaining six stores. In the meantime, we continue to operate the remaining stores pursuant to an operating and management agreement between the parties.

Conference Call: The Company will hold a conference call to discuss this release today at 11:30 a.m. eastern time. Investors will have the opportunity to listen to the conference call live over the Internet by going to and clicking Investor Relations, or by going to, at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a telephonic replay will be available for one week at (706) 645-9291, code 6594774, and the replay will also be available on Delek's website for 90 days.

About the Company: Delek US Holdings, Inc. is a diversified energy business focused on petroleum refining, marketing and supply of refined products, and retail marketing of fuel and general merchandise. The refining segment operates a high conversion, independent refinery, with a design crude distillation capacity of 60,000 barrels per day, in Tyler, Texas. The marketing and supply segment markets refined products through its terminals in Abilene, Texas and San Angelo, Texas as well as other third party terminals. The retail segment markets gasoline, diesel and other refined petroleum products and convenience merchandise through a network of company-operated retail fuel and convenience stores, operated under the MAPCO Express(R), MAPCO Mart(TM), East Coast(R), Discount Food Mart(TM) , Fast Food and Fuel(TM) and Favorite Markets(R) 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: 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; management's ability to execute its strategy of growth through acquisitions and transactional risks in acquisitions; general economic and business conditions, particularly levels of spending relating to travel and tourism or conditions affecting the southeastern United States; risks and uncertainties with the respect to the quantities and costs of refined petroleum products supplied to our pipelines and/or held in our terminals; potential conflicts of interest between our majority stockholder and other stockholders; and other risks contained in our filings with the 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.

                      Delek U.S. Holdings, Inc.
                Consolidated Statements of Operations
            (In millions, except share and per share data)

                                          Three Months Ended March 31,
                                               2007           2006
                                          ---------------- -----------

Net Sales                                          $805.6      $659.8

Operating costs and expenses:
    Cost of goods sold                              706.3       583.3
    Operating expenses                               45.6        40.7
    General and administrative expenses              12.2         6.9
    Depreciation and amortization                     7.0         4.4
    Losses on forward contract activities               -         0.1
                                          ---------------- -----------
                                                    771.1       635.4
                                          ---------------- -----------
Operating income                                     34.5        24.4
                                          ---------------- -----------

Interest expense                                      7.2         5.9
Interest income                                      (2.0)       (0.9)
Interest expense to related parties                     -         0.7
Other expenses, net                                   0.6        (0.8)
                                          ---------------- -----------
                                                      5.8         4.9
                                          ---------------- -----------

Income before income tax expense                     28.7        19.5
Income tax expense                                    7.8         6.6
                                          ---------------- -----------

    Net income                                      $20.9       $12.9
                                          ================ ===========

Basic earnings per share                            $0.41       $0.33
                                          ================ ===========

Diluted earnings per share                          $0.40       $0.33
                                          ================ ===========

Weighted average common shares
    Basic                                      51,139,869  39,389,869
                                          ================ ===========
    Diluted                                    52,153,729  39,389,869
                                          ================ ===========

Dividends declared per common share
 outstanding(1)                                   $0.2725          $-
                                          ================ ===========

(1)During the three months ended March 31, 2007, Delek declared three
 dividends totaling $0.2725 per common share and paid dividends of
 $0.0375 per common share.
                      Delek U.S. Holdings, Inc.
                Balance Sheet and Cash Flow Highlights
            (In millions, except share and per share data)

                                             March 31,    December 31,
                                               2007          2006
                                          --------------- ------------
 Current assets:
      Cash and cash equivalents and
       investments                                $276.1       $174.8
      Other current assets                         235.9        235.8
                                          --------------- ------------
       Total current assets                        512.0        410.6

       Property, plant and equipment, net          426.1        424.7

 Other non-current assets                          113.2        114.1
                                          --------------- ------------
       Total assets                             $1,051.3       $949.4
                                          =============== ============

Liabilities and shareholders' equity
 Current liabilities:
      Accounts Payable                            $188.5       $175.5
      Current portion of long-term debt             28.3         21.0
      Accrued expenses and other current
       liabilities                                  45.9         34.4
                                          --------------- ------------
       Total current liabilities                   262.7        230.9

 Non-current liabilities:
      Long-term debt, net of current
       portion                                     328.2        265.6
      Other non-current liabilities                 70.6         70.7
                                          --------------- ------------
       Total non-current liabilities               398.8        336.3

 Shareholders' equity:
      Preferred stock, $0.01 par value,
       10,000,000 shares authorized,
       0 shares issued and outstanding                 -            -
      Common stock, $0.01 par value,
       110,000,000 shares authorized,
       51,139,869 shares issued and
        outstanding                                  0.5          0.5
      Additional paid-in capital                   212.6        211.9
      Retained earnings                            176.7        169.8
                                          --------------- ------------
       Total shareholders' equity                  389.8        382.2
                                          --------------- ------------
       Total liabilities and
        shareholders' equity                    $1,051.3       $949.4
                                          =============== ============

                                          Three Months Ended March 31,
                                               2007          2006
                                          --------------- ------------

                                          --------------- ------------
 Net cash provided by (used in) operating
  activities                                        42.3         (8.1)
                                          --------------- ------------

                                          --------------- ------------
 Net cash provided by investing
  activities:                                       24.0         15.3
                                          --------------- ------------

                                          --------------- ------------
 Net cash provided by (used in) investing
  activities                                        67.2         (0.3)
                                          --------------- ------------

 Net increase in cash and cash
  equivalents                                      133.5          6.9
 Cash and cash equivalents at the
  beginning of the period                          101.6         62.6
                                          --------------- ------------
 Cash and cash equivalents at the end of
  the period                                      $235.1        $69.5
                                          =============== ============

 Supplemental disclosures of cash flow
 Cash paid during the year for:
      Interest, net of capitalized
       interest of $0.2 million in 2007             $4.2         $5.7
                                          =============== ============
      Income taxes                                    $-         $0.6
                                          =============== ============
 Dividend Payable ($0.235 per share)               $12.0           $-
                                          =============== ============
                          Segment Statistics

                                          Three Months Ended March 31,
                                               2007           2006
                                          ---------------- -----------
Days operated in period                                90          90
Total sales volume (average barrels per
 day)                                              55,851      54,267

Products manufactured (average barrels per
   Gasoline                                        31,358      29,424
   Diesel/Jet                                      20,665      23,838
   Petrochemicals, LPG, NGLs                        1,741       2,116
   Other                                            2,102       3.341
   Total production                                55,866      58,719

Throughput (average barrels per day):
   Crude oil                                       53,052      58,008
   Other feedstocks                                 4,261       1,616
   Total throughput                                57,313      59,624

Per barrel of sales:
   Refining operating margin (1)                   $10.67       $8.81
   Refining operating margin excluding
      Marketing service fees(2)                    $11.23       $8.81
   Direct operating expenses                        $3.52       $3.62

Pricing statistics (average for the period
   WTI -- Cushing crude oil (per barrel)           $58.29      $63.34
   US Gulf Coast 5-3-2 crack spread (per
    barrel)                                         $9.85       $8.13
   US Gulf Coast Unleaded Gasoline (per
    gallon)                                         $1.63       $1.70
   Low sulfur diesel (per gallon)                   $1.75       $1.81
   Natural gas -- (per MMBTU)                       $7.19       $7.73

                                          Three Months Ended March 31,
Days operated in period                                90
Total sales volume (average barrels per
 day)                                              16,978
Products sold (average barrels per day):
   Gasoline                                         7,757
   Diesel/Jet                                       9,142
   Other                                               79
   Total sales                                     16,978
Direct Operating Expenses (per barrel of
 sales)                                             $0.15

                                          Three Months Ended March 31,
                                               2007           2006
                                          ---------------- -----------
Number of stores (end of period)                      395         349
Average number of stores                              394         349
Retail fuel sales (thousands of gallons)          102,497      90,208
Average retail gallons per average number
 of stores (in thousands)                             260         258
Retail fuel margin ($ per gallon)                  $0.123      $0.119
Merchandise sales (in thousands)                  $81,793     $72,788
Merchandise margin %                                 32.5%       30.5%
Credit expense (% of gross margin) (3)                8.0%        7.8%
Merchandise and cash over/short (% of net
 sales) (4)                                           0.3%        0.3%
Operating expense/merchandise sales plus
 total gallons (5)                                   14.4%       13.4%

(1) Refining operating margin per barrel is calculated by dividing the
 margin between net sales and cost of crude oil, feedstocks and
 related transportation by the total barrels sold at our refinery.
 Industry-wide refining results are driven and measured by the margins
 between refined petroleum product prices and the prices for crude
 oil, which are referred to as crack spreads: the differential in
 price between a representative barrel of benchmark refined petroleum
 products, such as gasoline or heating oil, and a barrel of benchmark
 crude oil. The US Gulf Coast 5-3-2 crack spread represents the
 differential between Platt's quotations for 3/5 of a barrel of US
 Gulf Coast Pipeline 87 Octane Conventional Gasoline and 2/5 of a
 barrel of US Gulf Coast Pipeline No. 2 Heating Oil (high sulfur
 diesel) on the one hand, and the first month futures price of 5/5 of
 a barrel of light sweet crude oil on the New York Mercantile
 Exchange, on the other hand. We compare our refining operating margin
 to these crack spreads to assess our operating performance relative
 to other participants in our industry.
(2) Excludes inter-company marketing services fees of $2.8 million for
 the three months ended March 31, 2007, from Refining to Marketing
(3) Consists of third party credit, debit and fuel card processing
 fees as a percentage of gross margin.
(4) Merchandise and cash over/short as a percentage of net sales is a
 measure of merchandise loss or theft, motor fuel theft and cash
 shortages as a percentage of net sales.
(5) Operating expense for our retail segment divided by merchandise
 sales plus total gallons sold is a ratio we use to measure store
 operating performance -- especially operating expense control. Total
 gallons are used rather than net fuel sales to eliminate the
 volatility of fuel prices in the calculation and improve
                             Segment Data
                            (In millions)

                       For the Three Months Ended March 31, 2007
                                             Other and
                  Refining Retail  Marketing Eliminations Consolidated
                  -------- ------- --------- ------------ ------------
 marketing fees
 and sales)        $356.7  $331.0    $117.9           $-       $805.6

 marketing fees
 and sales           (2.8)      -       2.8            -            -
Operating costs
 and expenses:
  Cost of goods
   sold             300.2   291.5     114.6            -        706.3
   expenses          17.7    27.6        .2          0.1         45.6
                  -------- ------- --------- ------------ ------------
 margin              36.0    11.9       5.9         (0.1)        53.7
                  -------- ------- --------- ------------
General and
 expenses                                                        12.2
Depreciation and
 amortization                                                     7.0
Operating income                                                $34.5
                       For the Three Months Ended March 31, 2006
                                             Other and
                  Refining Retail            Eliminations Consolidated
                  -------- -------           ------------ ------------
Net sales          $362.1  $297.6                   $0.1       $659.8
Operating costs
 and expenses:
  Cost of goods
   sold             319.0   264.3                      -        583.3
   expenses          17.7    22.9                    0.1         40.7
                  -------- -------           ------------ ------------
 margin              25.4    10.4                      -         35.8
                  -------- -------           ------------
General and
 expenses                                                         6.9
Depreciation and
 amortization                                                     4.4
Gains on forward
 activities                                                       0.1
Operating income                                                $24.4

CONTACT: Delek US Holdings, Inc.
Investor Relations Contact:
Assi Ginzburg, 615-224-1179
Vice President of Strategic Planning
Corporate Communications Inc.
Scott Brittain or Kristina Korte, 615-254-3376
Lovell Communications Inc.
U.S. Media Contact:
Paula Lovell, 615-297-7766
Cell: 615-972-2964
Israel Media Contact:
Arad Communications
Lior Chorev, 011-972-3-644-0404

SOURCE: Delek US Holdings, Inc.