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
May 15, 1997 RESULTS FIRST QUARTER 1997
Dear Shareholders:
Crown announced substantially improved operating results for the second
consecutive quarter. Earnings amounted to $.7 million ($.07 per share) on
revenues of $394.5 million compared to a loss of $13.0 million ($1.34 per share)
on revenues of $371.1 million in the first quarter of 1996.
Crown's first quarter operating cash flow (earnings before interest, taxes,
non-cash charges and LIFO accounting adjustments referred to as EBITDAAL)
increased from $.7 million in the first quarter of 1996 to $1.6 million in the
first quarter of 1997.
Crown's retail marketing operations reported strong first quarter results
compared to the same period in 1996. Retail merchandise margins increased to
31% and merchandise sales increased 1.85%. Gasoline margins rebounded 44% to
11.6 cents per gallon in the first quarter, while total fuel gallons on a
comparable store basis were up 1.7%.
Crown's Tyler, Texas refinery successfully completed a scheduled multi-unit
maintenance shutdown (turnaround) in the first quarter. The downtime of these
units negatively impacted results for the period.
Effective April 30, Crown terminals at Curtis Bay in Baltimore and
Doraville, Georgia will be closed. Shell Oil Co. terminals in these areas will
be used to supply product to Crown and its customers for deliveries.
Substantial cost savings will be realized as a result of this action.
The results were gratifying, particularly in light of the scheduled major
turnaround at the Tyler refinery. This marks the second consecutive quarter of
substantially improved profitability. For the two most recently completed
quarters, earnings exceed the prior year comparable quarterly results by over
$40 million.
This marked improvement seemingly supports forecasts of increasing refining
and marketing margins. We are encouraged by this development which, combined
with improved efficiencies, provide for an optimistic outlook for the year.
Sincerely,
HENRY A. ROSENBERG, JR.
Chairman of the Board, Chief Executive Officer and President
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Crown Central Petroleum Corporation and
Subsidiaries
Dollars in thousands, except per share data
Three Months Ended
March 31
1997 1996
Sales and operating $394,513 $371,091
revenues
Income (loss) before 1 (18,010)
income taxes ,423
Net income (loss) 7 (13,010)
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Net income (loss) per . (1.34)
share 07
Weighted average shares
used in the
computation of income 9 9,700,083
(loss) per share ,733,480
CROWN CENTRAL PETROLEUM CORPORATION
OPERATING STATISTICS
Three Months Ended
March 31
1997 1996
COMBINED REFINERY
OPERATIONS
Production (BPD - M) 154 149
Production (MMbbl) 13.9 13.6
Sales (MMbbl) 14.3 15.6
Gross Margin ($/bbl) 1.99 2.13
Gross Profit ($MM) 28.4 33.3
Operating Cost ($/bbl) (2.17) (2.19)
Operating Cost ($MM) (30.9) (34.3)
Net Refining (Loss) ($MM) (2.5) (0.9)
RETAIL
Number Stores 341 347
Volume (pmps - Mgal) 126 122
Volume (MMgal) 129 127
Gasoline Gross Margin 0.116 0.081
($/gal)
Gasoline Gross Profit ($MM) 14.9 10.4
Merchandise Sales (pmps - 23.7 22.5
$M)
Merchandise Sales ($MM) 24.2 23.5
Merchandise Gross Margin 30.7 27.1
(%)
Merchandise Gross Profit 7.4 6.4
($MM)
Retail Gross Profit ($MM) 22.3 16.8
Retail Operating Costs (18.0) (19.0)
(pmps - $M)
Retail Operating Costs (18.5) (19.8)
($MM)
Retail Non-Operating (0.2) 0.4
(Expense) Income ($MM)
Retail Net Profit (Loss) 3.6 (2.6)
($MM)
WHOLESALE / TERMINAL
NET PROFIT (LOSS) ($MM) (1.8) 1.4
OTHER
LIFO Recovery (Provision) 9.9 (7.8)
($MM)
Corporate Overhead / Other (7.8) (8.1)
($MM)
Income Tax (Expense) (0.7) 5.0
Benefit ($MM)
Total Net Income (Loss) 0.7 (13.0)
($MM)
Depreciation & Amortization 7.8 8.0
($MM)
Net Interest Expense ($MM) 2.9 2.9
LIFO (Recovery) Provision (9.9) 7.8
($MM)
(Gain) from Asset Disposals (0.6) 0.0
($MM)
Income Tax Expense 0.7 (5.0)
(Benefit)
EBITDAAL ($MM) 1.6 0.7
Capital Expenditures ($MM) 7.3 7.4
<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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