EXHIBIT 20
CROWN
(registered trademark)
Crown Central Petroleum Corporation
Refiners / marketers of petroleum products &
petrochemicals
One North Charles Street, P.O. Box 1168, Baltimore, Maryland
21203, (410) 539-7400
October 26, 1995
__________________________
Results Third Quarter 1995
__________________________
Results Third Quarter 1995
__________________________
Results Third Quarter 1995
Dear Shareholders:
For the third quarter of 1995, Crown Central Petroleum's net
income was $.3 million ($.03 per share) compared to a net loss of
$26.6 million ($2.71 per share) for the same period in 1994.
Sales and operating revenues in the quarter amounted to $475
million compared to $468 million last year. For the nine months,
net income before an extraordinary charge of $3.3 million ($.33
per share) for the early retirement of debt, totalled $.4 million
($.04 per share) on revenues of $1.4 billion compared to a net
loss of $25.2 million ($2.57 per share) in 1994 on revenues of
$1.3 billion.
Results for the 1994 periods were severely impacted by a one
time, pre-tax, non cash charge of $16.8 million ($1.05 per share
on an after-tax basis) for the write-down of hydrodesulfurization
equipment intended for use at the Houston, Texas refinery.
While margins were declining during the third quarter, the
Company's performance was dramatically improved compared to the
same quarter in 1994. Crown continued to benefit from operating
efficiencies and procedures implemented at both refineries over
the past few years.
Operationally, the third quarter was excellent for both
refineries. Gasoline production was maximized, averaging 62,000
bpd at Houston and 27,700 bpd at LaGloria. Overall capacity
utilization at the facilities was 93% and 94%, respectively, for
the period. During the first week of the fourth quarter, the
reformer located at Houston was shut down for planned maintenance
and is expected to be back in production at the end of the month.
The Company expects the overall impact of this shut down to be
minimal on fourth quarter operating results.
Crude prices for the quarter ranged from a low $16.60 to
$19.00 per barrel before ending sharply down at $17.00 per
barrel. Following the same pattern, gasoline (87 octane) prices
rose during the period until the end of September when pricing
dropped sharply from $.5250 to $.4900 per gallon. Although still
inadequate to provide absolute earnings, the Company's realized
crack spreads in the third quarter have shown substantial
improvement over 1994 in spite of the fact that U.S. Gulf Coast
margins were relatively flat year-to-year.
Crown marketing continued to produce excellent results in
the quarter. Merchandise sales at comparable stores were 4.2%
higher and gasoline sales were 10.2% over the same period last
year. Gasoline and merchandise margins rose an impressive 15.4%
and 16.5%, respectively. The third quarter also saw the
successful acquisition and integration of 15 Conoco outlets into
the retail system bringing the Company's total operating store
count to 348. This addition compliments Crown's strategic
objective of capturing more of the total margin available in our
business areas.
At the end of the quarter, Crown completed arrangements for
a $130 million revolving credit agreement with a banking group
led by NationsBank of Texas, N.A. This agreement augments the
$125 million public debt offering of the first quarter and
supports the Company's strategic direction while providing
increased flexibility for daily operations. Access to capital
resources is key in maintaining our competitiveness.
Sincerely,
HENRY A ROSENBERG, JR. CHARLES L. DUNLAP
HENRY A. ROSENBERG, JR. CHARLES L. DUNLAP
Chairman and Chief Executive Officer President and
Chief Operating Officer
Crown Central Petroleum Corporation and Subsidiaries
Dollars in thousands, except per share data
Nine Months Ended Three Months Ended
September 30 September 30
1995 1994 1995 1994
------------ ------------- ------------ -------------
Sales and operating revenues $1,403,473
$1,315,284 $474,737 $468,275
Income (loss) before income taxes 1,929
(36,808) (290) (41,361)
Income (loss) before
extraordinary item
416 (25,234) 304 (26,608)
(Loss) from extraordinary item _
1/
(3,257) ---- ---- ----
Net (loss) income
(2,841) (25,234) 304 (26,608)
Income (loss) per share before
extraordinary item
.04 (2.57) .03 (2.71)
(Loss) per share from extraordinary item (.33)
---- ---- ----
Net (loss) income per share
(.29) (2.57) .03 (2.71)
Weighted average shares used in the
computation of income (loss) per share _
2/ 9,697,598
9,802,198 9,697,598 9,802,198
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<FN>
_
1/ During the first quarter of 1995, the Company incurred an
extraordinary loss as a result of the early
retirement of its outstanding 10.42% Senior Notes (Notes). The
outstanding Notes were retired
on January 24, 1995 from the proceeds received from the sale of $125
million of unsecured 10 7/8%
Senior Notes due February 1, 2005.
_
2/ The weighted average number of common shares used in the
computation of income (loss) per share for the nine and three months ended
September 30, 1995 set forth above exclude 255,300 shares of Performance
Vested Restricted Stock registered to participants in the 1994 Long-Term
Incentive Plan. This represents a revision from those numbers as
originally reported in the shareholders' letter. These revisions had no
effect on the income (loss) per share as originally reported in the
shareholders' letter.
Crown Central Petroleum Corporation and Subsidiaries
Operating Statistics
Nine Months Ended Three Months Ended
September 30 September 30
1995 1994 1995 1994
------------ ---------- ----------- -----------
________
REFINING
Production (BPD - M)
157 155 161 150
Production (Mmbbl)
42.8 42.3 14.8 13.8
Gross Margin ($/bbl)
2.31 2.64 1.99 1.84
Gross Profit ($MM)
98.6 111.7 29.6 25.3
Operating Cost ($/bbl)
2.21 2.41 2.07 2.54
Operating Cost ($MM)
94.5 102.1 30.8 34.9
Net Refining Profit (Loss) ($MM) 4.1
9.6 (1.2) (9.6)
______
RETAIL
Number Stores
348 356 348 356
Volume (pmps - Mgal)
122 113 127 113
Volume (Mmgal)
381 362 133 121
Gasoline Gross Margin ($/gal) 0.13
0.11 0.15 0.14
Gasoline Gross Profit ($MM) 49.1
41.1 19.6 17.0
Merchandise Sales (pmps - $M) 22.1
20.1 23.3 23.1
Merchandise Sales ($MM) 69.3
64.3 24.3 24.7
Merchandise Gross Margin (%) 28.4
27.5 28.8 25.9
Merchandise Gross Margin ($MM) 19.7
17.7 7.0 6.4
Retail Gross Profit ($MM)
68.8 58.8 26.6 23.4
Retail Operating Costs (pmps - $M) 16.9
17.0 17.3 17.5
Retail Net Profit ($MM)
15.9 4.2 8.5 4.7
Total Net Profit (Loss) ($MM) 22.6
(16.7) 6.6 (35.4)
Corporate Overhead ($MM) 11.8
15.4 3.6 4.3
Depreciation and Amortization ($MM) 28.7
33.7 9.7 12.7
EBITD ($MM)
39.5 1.6 12.7 (27.0)
LIFO (Recovery) Provision ($MM) (0.3)
17.9 (2.1) (2.6)
Loss on Sales
and Abandonments of P, P & E ($MM) 0.0
16.6 0.2 16.9
EBITDAAL ($MM) 39.2
36.1 10.8 (12.7)
Net Interest Expense ($MM) 8.8
4.7 3.0 1.7
Capital Expenditures ($MM) 27.1
21.1 12.3 7.1
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<FN>
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