EXHIBIT 20
April 28, 2000
RESULTS OF FIRST QUARTER 2000
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Dear Shareholders:
Crown Central Petroleum Corporation today announced a net loss of
$3.6 million ($.36 per share) on revenues of $421.5 million in the first
quarter of 2000 compared to a net loss of $11.8 million ($1.20 per share)
on revenues of $225.2 million in the first quarter of 1999.
The results reflect the impact of the volatile crude oil and petroleum
product markets during the quarter. West Texas Intermediate, the industry
benchmark, increased from a low of $24.18 per barrel on January 7, 2000, to
a high of $33.93 per barrel on March 7, 2000. This 40% increase in the
range of crude oil prices was greater than the price increase realized for
finished products.
The Company's refinery operations performed quite well during a
period of significant market volatility. For the quarter, the gross
margin realized of $4.39 per barrel compared favorably to the 20-day
delayed Gulf Coast 3-2-1 benchmark of $4.10 per barrel.
Crown's retail marketing segment experienced a 4% increase in
merchandise sales during the quarter, as well as a 7% reduction in retail
operating costs on a per month per store basis, when compared with the same
period in 1999. Overall, gasoline gross margins and gasoline volumes on a
per month per store basis were flat for the first quarter 2000 when compared
to the first quarter 1999. Volumes recovered during the quarter despite a
slow start in January, likely due to consumers filling up in late December
1999 in light of Y2K concerns.
During the quarter, Crown announced that it had reached a labor accord
with the Paper, Allied-Industrial, Chemical and Energy Workers Union (PACE)
Local 4-202 at the Company's Tyler, Texas refinery. The new three year
agreement incorporates oil refining wage and contract terms similar to other
extension agreements negotiated at refineries represented by PACE. An
agreement has yet to be reached with PACE Local 4-227 at the Company's
Pasadena, Texas refinery, where a lockout was instituted in 1996 after
contract negotiations failed and acts of sabotage were discovered inside the
refinery.
On April 10, 2000 Crown announced that it had entered into a definitive
merger agreement that would result in the Company becoming a wholly-owned
subsidiary of Rosemore, Inc., a Maryland corporation that owns 49% of
Crown's Class A common
stock and 11% of Crown's Class B common stock. The merger is subject to
certain conditions, including, among others, expiration of the waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, receipt of approval of two-thirds of the outstanding voting shares,
as required under Maryland law and Crown's Charter, and the absence of
defaults under the indenture governing the Company's 10 7/8% Senior Notes
Due 2005. The Company intends to call a special meeting of its
stockholders to seek approval of the merger, and has postponed its annual
meeting until later in the year to facilitate the holding of the special
meeting.
Leading up to the Organization of Petroleum Exporting Countries
(OPEC) agreement in late March, market prices were rising for most of the
first quarter. Since that time, crude prices have fallen to as low as
$23.85 per barrel, reflecting the instability of the market and the
difficulty in realizing an acceptable margin.
The Form 10-K for the fiscal year ended December 31, 1999 is enclosed
for your review.
Sincerely,
/s/--Henry A. Rosenberg, Jr.
HENRY A. ROSENBERG, JR.
Chairman of the Board,
Chief Executive Officer and President
CROWN CENTRAL PETROLEUM CORPORATION
OPERATING STATISTICS
Three Months Ended
March 31
2000 1999
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COMBINED REFINERY OPERATIONS
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Production (BPD - M) 138 134
Production (MMbbl) 12.6 12.0
Sales (MMbbl) 12.5 11.8
Gross Margin ($/bbl) 4.39 2.13
Gross Profit ($MM) 54.9 25.2
Operating Cost ($/bbl) (2.50) (2.58)
Operating Cost ($MM) (31.2) (30.6)
Refining Operating Profit (Loss)($MM) 23.7 (5.4)
RETAIL
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Total Stores 330 344
Volume (pmps - Mgal) 117 118
Volume (MMgal) 116 122
Gasoline Gross Margin ($/gal) 0.081 0.085
Gasoline Gross Profit ($MM) 9.4 10.4
Company-Operated Stores 228 243
Merchandise Sales (pmps-$M) 34.8 33.5
Merchandise Sales ($MM) 23.8 24.4
Merchandise Gross Margin (%) 31.5 30.7
Merchandise Gross Profit ($MM) 7.5 7.5
Ancillary Income, Net ($MM) 3.2 3.4
Retail Gross Profit ($MM) 20.1 21.3
Retail Operating Costs (pmps - $M) (20.4) (21.9)
Retail Operating Costs ($MM) (20.2) (22.6)
Retail Non-Operating Income ($MM) 0.4 0.0
Retail Operating Profit (Loss) ($MM) 0.3 (1.3)
WHOLESALE/TERMINAL
OPERATING PROFIT ($MM) 10.7 5.3
OTHER
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LIFO (Provision) ($MM) (27.4) (9.1)
Corporate Overhead ($MM) (6.6) (6.3)
Net Interest (Expense) ($MM) (4.2) (3.3)
Other Income ($MM) 0.1 1.8
Income Tax (Expense) Benefit ($MM) (0.2) 6.5
Total Net (Loss)($MM) (3.6) (11.8)
Depreciation & Amortization ($MM) 9.6 8.8
Net Interest Expense ($MM) 4.2 3.3
LIFO Provision ($MM) 27.4 9.1
Loss from Asset Disposals ($MM) (0.6) 0.4
Income Tax Expense (Benefit) ($MM) 0.2 (6.5)
EBITDAAL ($MM) 37.2 3.3
Capital Expenditures ($MM) 4.3 9.2
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BPD = Barrels Per Day
bbl = barrel or barrels as applicable
gal = gallon or gallons as applicable
pmps = per month per store
M = in thousands
MM = in millions
Note: Merchandise sales consist of sales generated by Company-operated
stores, therefore, the per month per store (pmps) amounts are calculated
using Company-operating stores only.
CROWN CENTRAL PETROLEUM CORPORATION AND SUBSIDIARIES
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
Three Months Ended
March 31
2000 1999
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Sales and operating revenues $ 421,484 $ 225,165
(Loss) before income taxes (3,276) (18,350)
Net (loss) (3,563) (11,830)
Net (loss) per share:
Basic and diluted $ (0.36) $ (1.20)
Weighted average shares used in the
computation of net (loss) per
share:
Basic and Dilutive 9,871,431 9,871,431
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