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Source: businesswire | Published on: Thursday, 31 October 2024
EL DORADO, Ark.--(BUSINESS WIRE)--Murphy USA Inc. (NYSE: MUSA), a leading marketer of retail motor fuel products and convenience merchandise, today announced financial results for the three and nine months ended September 30, 2024.
Key Highlights:
“Strength in our core categories continued to drive Murphy USA’s advantaged business model in the third quarter,” said President and CEO Andrew Clyde. “Retail fuel margins were over 3 cpg higher than 2023, and per store volumes grew 1.1%, as pricing dynamics continue to reflect higher industry breakeven margins. Within the Murphy branded stores, total merchandise margin dollars were up 5.9% reflecting strength in both nicotine and non-nicotine categories while there were continued headwinds in the Northeast QuickChek markets. As our innovation and business improvement initiatives take hold, our network grows, and we continue to take share on key categories, we are well-positioned to compete and win with our value-conscious customers. We are accelerating our new-store build program in 2024 and 2025, which is generating strong returns and remains the primary growth driver of the business over the next five to ten years.”
Consolidated Results
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| Three Months Ended |
| December 31, | ||||||
|
| (unaudited) |
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Assets |
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Current assets |
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Cash and cash equivalents |
| $ | 52.5 |
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| $ | 117.8 |
| ||
Marketable securities, current |
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| 1.5 |
|
|
| 7.1 |
| ||
Accounts receivable—trade, less allowance for doubtful accounts of $0.6 and $1.3 at 2024 and 2023, respectively |
|
| 262.6 |
|
|
| 336.7 |
| ||
Inventories, at lower of cost or market |
|
| 341.2 |
|
|
| 341.2 |
| ||
Prepaid expenses and other current assets |
|
| 31.3 |
|
|
| 23.7 |
| ||
Total current assets |
|
| 689.1 |
|
|
| 826.5 |
| ||
Marketable securities, non-current |
|
| — |
|
|
| 4.4 |
| ||
Property, plant and equipment, at cost less accumulated depreciation and amortization of $1,868.7 and $1,739.2 at 2024 and 2023, respectively |
|
| 2,739.9 |
|
|
| 2,571.8 |
| ||
Operating lease right of use assets, net |
|
| 484.8 |
|
|
| 452.1 |
| ||
Intangible assets, net of amortization |
|
| 139.6 |
|
|
| 139.8 |
| ||
Goodwill |
|
| 328.0 |
|
|
| 328.0 |
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Other assets |
|
| 21.0 |
|
|
| 17.5 |
| ||
Total assets |
| $ | 4,402.4 |
|
| $ | 4,340.1 |
| ||
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Liabilities and Stockholders' Equity |
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Current liabilities |
|
|
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Current maturities of long-term debt |
| $ | 15.7 |
|
| $ | 15.0 |
| ||
Trade accounts payable and accrued liabilities |
|
| 780.3 |
|
|
| 834.7 |
| ||
Income taxes payable |
|
| 62.8 |
|
|
| 23.1 |
| ||
Total current liabilities |
|
| 858.8 |
|
|
| 872.8 |
| ||
|
|
|
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| ||||||
Long-term debt, including capitalized lease obligations |
|
| 1,820.0 |
|
|
| 1,784.7 |
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Deferred income taxes |
|
| 325.5 |
|
|
| 329.5 |
| ||
Asset retirement obligations |
|
| 47.4 |
|
|
| 46.1 |
| ||
Non-current operating lease liabilities |
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| 487.7 |
|
|
| 450.3 |
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Deferred credits and other liabilities |
|
| 32.9 |
|
|
| 27.8 |
| ||
Total liabilities |
|
| 3,572.3 |
|
|
| 3,511.2 |
| ||
Stockholders' Equity |
|
|
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| ||||||
Preferred Stock, par $0.01 (authorized 20,000,000 shares, |
|
|
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| ||||||
none outstanding) |
|
| — |
|
|
| — |
| ||
Common Stock, par $0.01 (authorized 200,000,000 shares, |
|
|
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| ||||||
46,767,164 shares issued at 2024 and 2023, respectively) |
|
| 0.5 |
|
|
| 0.5 |
| ||
Treasury stock (26,518,065 and 25,929,836 shares held at |
|
|
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| ||||||
2024 and 2023, respectively) |
|
| (3,265.9 | ) |
|
| (2,957.8 | ) | ||
Additional paid in capital (APIC) |
|
| 484.7 |
|
|
| 508.1 |
| ||
Retained earnings |
|
| 3,610.8 |
|
|
| 3,278.1 |
| ||
Total stockholders' equity |
|
| 830.1 |
|
|
| 828.9 |
| ||
Total liabilities and stockholders' equity |
| $ | 4,402.4 |
|
| $ | 4,340.1 |
| ||
Murphy USA Inc. | ||||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||||
(Unaudited) | ||||||||||||||||
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| Three Months Ended |
| Nine Months Ended | ||||||||||||
(Millions of dollars) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||||||
Operating Activities |
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|
|
|
|
|
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Net income |
| $ | 149.2 |
|
| $ | 167.7 |
|
| $ | 360.0 |
|
| $ | 406.8 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
|
|
|
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|
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Depreciation and amortization |
|
| 62.8 |
|
|
| 57.5 |
|
|
| 180.8 |
|
|
| 171.7 |
|
Deferred and noncurrent income tax charges (benefits) |
|
| 2.5 |
|
|
| (9.3 | ) |
|
| (4.0 | ) |
|
| 0.1 |
|
Accretion of asset retirement obligations |
|
| 0.8 |
|
|
| 0.7 |
|
|
| 2.4 |
|
|
| 2.2 |
|
Amortization of discount on marketable securities |
|
| — |
|
|
| — |
|
|
| (0.1 | ) |
|
| — |
|
(Gains) losses from sale of assets |
|
| 0.4 |
|
|
| 0.5 |
|
|
| 1.4 |
|
|
| 0.6 |
|
Net (increase) decrease in noncash operating working capital |
|
| (23.8 | ) |
|
| (35.6 | ) |
|
| 32.0 |
|
|
| (97.2 | ) |
Other operating activities - net |
|
| 10.2 |
|
|
| 8.5 |
|
|
| 26.4 |
|
|
| 26.7 |
|
Net cash provided (required) by operating activities |
|
| 202.1 |
|
|
| 190.0 |
|
|
| 598.9 |
|
|
| 510.9 |
|
Investing Activities |
|
|
|
|
|
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Property additions |
|
| (136.9 | ) |
|
| (79.4 | ) |
|
| (331.1 | ) |
|
| (224.6 | ) |
Proceeds from sale of assets |
|
| 0.3 |
|
|
| 0.5 |
|
|
| 1.9 |
|
|
| 2.3 |
|
Investment in marketable securities |
|
| — |
|
|
| (2.9 | ) |
|
| — |
|
|
| (11.3 | ) |
Redemptions of marketable securities |
|
| 6.0 |
|
|
| 7.5 |
|
|
| 10.0 |
|
|
| 18.0 |
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Other investing activities - net |
|
| (0.9 | ) |
|
| (0.4 | ) |
|
| (1.7 | ) |
|
| (1.4 | ) |
Net cash provided (required) by investing activities |
|
| (131.5 | ) |
|
| (74.7 | ) |
|
| (320.9 | ) |
|
| (217.0 | ) |
Financing Activities |
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|
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Purchase of treasury stock |
|
| (125.2 | ) |
|
| (64.8 | ) |
|
| (317.7 | ) |
|
| (172.7 | ) |
Dividends paid |
|
| (9.2 | ) |
|
| (8.4 | ) |
|
| (27.1 | ) |
|
| (24.7 | ) |
Borrowings of debt |
|
| 225.0 |
|
|
| — |
|
|
| 345.0 |
|
|
| 8.0 |
|
Repayments of debt |
|
| (187.9 | ) |
|
| (3.9 | ) |
|
| (315.7 | ) |
|
| (19.6 | ) |
Amounts related to share-based compensation |
|
| (0.6 | ) |
|
| (6.3 | ) |
|
| (27.8 | ) |
|
| (20.6 | ) |
Net cash provided (required) by financing activities |
|
| (97.9 | ) |
|
| (83.4 | ) |
|
| (343.3 | ) |
|
| (229.6 | ) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
| (27.3 | ) |
|
| 31.9 |
|
|
| (65.3 | ) |
|
| 64.3 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
| 79.8 |
|
|
| 92.9 |
|
|
| 117.8 |
|
|
| 60.5 |
|
Cash, cash equivalents and restricted cash at end of period |
| $ | 52.5 |
|
| $ | 124.8 |
|
| $ | 52.5 |
|
| $ | 124.8 |
|
Supplemental Disclosure Regarding Non-GAAP Financial Information
The following table reconciles EBITDA and Adjusted EBITDA to Net Income for the three and nine months ended September 30, 2024 and 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:
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| Three Months Ended |
| Nine Months Ended | ||||||||||
(Millions of dollars) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||||
|
|
|
|
|
|
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Net income |
| $ | 149.2 |
|
| $ | 167.7 |
| $ | 360.0 |
|
| $ | 406.8 |
|
|
|
|
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|
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Income tax expense (benefit) |
|
| 49.5 |
|
|
| 55.7 |
|
| 113.8 |
|
|
| 131.3 |
Interest expense, net of investment income |
|
| 23.4 |
|
|
| 22.5 |
|
| 71.1 |
|
|
| 69.8 |
Depreciation and amortization |
|
| 62.8 |
|
|
| 57.5 |
|
| 180.8 |
|
|
| 171.7 |
EBITDA |
| $ | 284.9 |
|
| $ | 303.4 |
| $ | 725.7 |
|
| $ | 779.6 |
|
|
|
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Accretion of asset retirement obligations |
|
| 0.8 |
|
|
| 0.7 |
|
| 2.4 |
|
|
| 2.2 |
(Gain) loss on sale of assets |
|
| 0.4 |
|
|
| 0.5 |
|
| 1.4 |
|
|
| 0.6 |
Other nonoperating (income) expense |
|
| (0.5 | ) |
|
| 1.4 |
|
| (1.0 | ) |
|
| 0.9 |
Adjusted EBITDA |
| $ | 285.6 |
|
| $ | 306.0 |
| $ | 728.5 |
|
| $ | 783.3 |
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