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
April 25, 1996
__________________________
RESULTS FIRST QUARTER 1996
Dear Shareholders:
Crown Central Petroleum announced today a net loss of
$13.0 million ( $1.34 per share) for the first quarter of
1996 on revenues of $371.1 million. This compares to a net
loss of $10.2 million ($1.04 per share) in the first
quarter of 1995 on revenues of $344.8 million. The 1995 net
loss includes an extraordinary charge of $3.3 million ($.33
per share) due to the early extinguishment of debt.
Crown's first quarter 1996 earnings before taxes,
interest, non-cash charges and LIFO accounting provisions
(collectively referred to as EBITDAAL) amounted to $.7
million compared to $4.6 million in the first quarter,
1995.
Operating costs were up at both Crown refineries largely
due to increases in the cost of fuel gas attributed to the
severe winter. While the Gulf Coast 3-2-1 crackspread, a
standard industry benchmark for refining margins, improved
significantly in 1996 over 1995, Crown was adversely
impacted by the high cost of foreign crudes and vacuum gas
oil which are important feedstocks predominantly used at
the Pasadena refinery. Costs associated with the
previously announced management restructuring also impacted
the first quarter 1996 results.
In retail marketing, Crown was put into a classic price
squeeze being unable to pass along crude cost increases as
rapidly as they were occurring. Thus, retail margins were
compressed as higher wholesale costs were not reflected in
consumer prices at the pumps. Gasoline margins were down
39% for the first quarter, while total fuel gallons were up
an impressive 4.3%. On a comparable store basis, volumes
increased 1.8% over the corresponding quarter. While
merchandise margins were up slightly, totals were flat as
inclement weather conditions impacted our marketing areas.
Even though results for the first quarter were
disappointing, it is encouraging that refining industry
fundamentals and pricing are strengthening. Thank you for
your continuing support.
Sincerely,
HENRY a. ROSENBERG, JR.
HENRY A. ROSENBERG, JR.
Chairman of the Board, Chief Executive Officer, President
and Chief Operating Officer
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Crown Central Petroleum Corporation and Subsidiaries
Dollars in thousands, except per share data
Three Months Ended
March 31
1996 1995
------------ ------------
Sales and operating revenues $ 371,091 $ 344,833
(Loss) before income taxes (18,010) (9,207)
(Loss) before extraordinary item (13,010) (6,918)
Loss) from extraordinary item _
1/ ---- (3,257)
Net (loss) (13,010) (10,175)
(Loss) per share before
extraordinary item (1.34) (.71)
(Loss) per share from
extraordinary item ---- (.33)
Net (loss) per share (1.34) (1.04)
Weighted average shares used
in the computation of
(loss) per share _
2/ 9,700,083 9,697,598
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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 $125 million of unsecured 10 7/8%
Senior Notes due February 1, 2005.
_
2/ The weighted average number of common shares used in the
computation of (loss) per share for the three months ended
March 31, 1995 set forth above exclude 105,500 shares of
Performance Vested Restricted Stock registered to participants
in the 1994 Long-Term Incentive Plan. These revisions had
no effect on the income (loss) per share as originally
reported in the shareholders' letter.
Headquartered in Baltimore, Maryland since 1930, Crown operates
two Texas refineries with a total capacity of 152,000 barrels
per day, 347 Crown gasoline and convenience stores in the
Mid-Atlantic and Southeastern U.S., and 17 product terminals
along the Colonial and Texas Eastern Products pipelines.
Crown Central Petroleum Corporation and Subsidiaries
Operating Statistics
Three Months Ended
March 31
1996 1995
---------- ----------
________
REFINING
Production (BPD - M) 149 154
Production (Mmbbl) 13.6 13.9
Gross Margin ($/bbl) 1.83 1.79
Gross Profit ($MM) 24.9 24.8
Operating Cost ($/bbl) 2.39 2.30
Operating Cost ($MM) 32.4 31.9
Net Refining Profit (Loss) ($MM) (7.5) (7.1)
______
RETAIL
Number Stores 347 345
Volume (pmps - Mgal) 122 117
Volume (Mmgal) 127 121
Gasoline Gross Margin ($/gal) 0.08 0.13
Gasoline Gross Profit ($MM) 10.4 15.8
Merchandise Sales (pmps - $M) 20.7 20.7
Merchandise Sales ($MM) 21.5 21.4
Merchandise Gross Margin (%) 27.1 25.2
Merchandise Gross Margin ($MM) 5.3 4.8
Retail Gross Profit ($MM) 15.7 20.6
Retail Operating Costs (pmps - $M) 17.1 17.2
Retail Net Profit ($MM) (2.1) 3.9
Wholesale / Other ($MM) (3.5) (2.0)
Corporate Overhead ($MM) (4.9) (4.0)
Income Tax (Expense) Benefit ($MM) 5.0 2.3
(Loss) from Extraordinary Item ($MM) (3.3)
Total Net (Loss) ($MM) (13.0) (10.2)
Depreciation and Amortization ($MM) 8.0 9.5
Net Interest Expense ($MM) 2.9 2.8
Other Income 0.0 0.7
LIFO Provision ($MM) 7.8 1.3
Loss (Gain) on Sales and
Abandonments of P,P & E ($MM) 0.0 0.2
EBITDAAL ($MM) 0.7 3.8
Capital Expenditures ($MM) 7.4 6.6
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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
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