EXHIBIT 20
APRIL 24, 1998 RESULTS FIRST QUARTER 1998
Dear Shareholders:
Crown Central Petroleum Corporation announced
a loss of $13.7 million ($1.40 per share) on
revenues of $326 million for the first quarter of
1998 compared to a profit of $.07 million on
revenues of $395 million in the first quarter of
1997.
The erosion of gasoline and distillate
margins that began in the fourth quarter of 1997
carried over through the first quarter of 1998.
Crude oil having finally bottomed out in mid-March
having dropped by 40% since November, was the
primary cause of the quarterly loss.
Operationally, during the first quarter, the fluid
catalytic cracking unit at our Pasadena, Texas
refinery was down for 12 days for unscheduled
maintenance. One of two alkylation units at
Pasadena and the one unit at our Tyler, Texas
refinery underwent scheduled 10 day maintenance
turnarounds.
The loss the Company experienced was
primarily due to the sharp fall in the price of
oil during the first quarter of 1998. Because of
the severe backwardization in the oil markets that
occurred in 1996, during the first quarter of 1997
the Company decided to price its crude oil more
into the future, meaning pricing the crude before
it is manufactured into products. The Company
continues to maintain its current pricing strategy
as it is believed that raw materials should
expectedly recover from the extreme lows recorded
during the first quarter. At different price
levels the Company will consider changing its
pricing strategy.
Crown's retail marketing operations reported
improved results compared to the same period in
1997. Retail merchandise gross profit increased
4.1% on comparable sales. Gasoline margins per
gallon improved 12.9% in the first quarter.
The volatility of crude, the basic,
fundamental component to our industry, makes for
challenging times. Both internally and
externally, Crown will continue to be disciplined
yet flexible in conducting its day to day
business. We have experienced this volatility in
the past but are encouraged by more positive
forecasts for the independent domestic refining
industry for the year ahead. I would like to
recognize the positive contribution retail
marketing continues to make.
Sincerely,
/S/--HENRY A. ROSENBERG,
JR.
--------------------------
- ---
HENRY A. ROSENBERG, JR.
Chairman of the Board,
Chief Executive Officer
and President
CROWN CENTRAL PETROLEUM CORPORATION AND SUBSIDIARIES
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
Three Months Ended
March 31
1998 1997
--------- ---------
- --
Sales and operating revenues $325,960 $394,513
Income (loss) before income (22,192) 1
taxes ,423
Net income (loss) (13,743) 7
24
Net income (loss) per share $ (1.4 $.
0) 07
Weighted average shares used in
the computation of income (loss) 9,812,569 9
per share ,733,478
CROWN CENTRAL PETROLEUM CORPORATION
OPERATING STATISTICS
Three Months Ended
March 31
1998 1997
--------- ---------
-- --
COMBINED REFINERY OPERATIONS
- -----------------------------
Production (BPD-M) 150 154
Production (MMbbl) 13.5 13.9
Sales (MMbbl) 15.0 14.3
Gross Margin ($/bbl) 0.30 1.99
Gross Profit ($MM) 4.5 28.4
Operating Cost ($/bbl) (2.30) (2.17)
Operating Cost ($MM) (34.4) (30.9)
Net Refining (Loss)($MM) (29.9) (2.5)
RETAIL
- ----------------
Number Stores 343 341
Volume (pmps - Mgal) 121 126
Volume (MMgal) 125 129
Gasoline Gross Margin ($/gal) 0.131 0.116
Gasoline Gross Profit ($MM) 16.3 14.9
Merchandise Sales (pmps - $M) 23.7 23.7
Merchandise Sales ($MM) 24.3 24.2
Merchandise Gross Margin (%) 31.8 30.7
Merchandise Gross Profit ($MM) 7.7 7.4
Retail Gross Profit ($MM) 24.0 22.3
Retail Operating Costs (pmps - $M) (19.4) (18.0)
Retail Operating Costs ($MM) (19.9) (18.2)
Retail Non-Operating (Expense) (0.1) (0.2)
Income ($MM)
Retail Net Profit (Loss) ($MM) 4.0 3.9
WHOLESALE/TERMINAL NET (3.6) (1.8)
PROFIT(LOSS)($MM)
OTHER
- ----------------
LIFO Recovery (Provision)($MM) 15.1 9.9
Corporate Overhead ($MM) (5.6) (5.2)
Net Interest Expense ($MM) (2.8) (2.9)
Other Income ($MM) 0.7 0.0
(Loss) from Extrordinary Item ($MM)
Total Net Income (Loss) ($MM) (13.7) 0.7
Depreciation & Amortization ($MM) 8.2 7.8
LIFO (Recovery) Provision ($MM) (15.1) (9.9)
(Gain) from Asset Disposals ($MM) (0.0) (0.6)
Loss from Extraordinary Item ($MM)
Income Tax Expense (Benefit) (8.4) 0.7
EBITDAAL ($MM) (26.2) 1.6
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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
</FN>