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
EXHIBIT 20
Institutional Inquiries:
JOHN E. WHEELER, JR.
Executive Vice President and
Chief Financial Officer
(410) 659-4803
Shareholder Inquiries:
JOSEPH M. COALE, III
Director, Corporate Communications
(410) 659-4856
FOR IMMEDIATE RELEASE
Baltimore, Maryland -- JULY 31, 1998
CROWN ANNOUNCES 1998 SECOND QUARTER RESULTS
- -------------------------------------------
Crown Central Petroleum Corporation announced today a net loss of $2.2
million ($.22 per share) in the second quarter of 1998, compared to a net profit
of $7.9 million ($.82 per share) in the second quarter of 1997. Sales and
operating revenues for the second quarter were $338 million compared to revenues
of $391 million in the second quarter of 1997.
For the first six months of 1998, the Company had a net loss of $15.9
million ($1.62 per share) on revenues of $663 million compared to a net profit
of $8.6 million ($.89 per share) on revenues of $786 million in the first half
of 1997.
Both refineries are operating at high efficiency levels. The industry
benchmark 3.2.1 Gulf Coast refining margin averaged $3.26 per barrel for the
second quarter. West Texas Intermediate Crude fluctuated widely but averaged
$14.63 per barrel for the quarter, reaching its lowest level since August of
1986. Retail prices for gasoline, adjusted for inflation, reached their lowest
level in 70 years.
The Company's refining profit, before taxes, was $5.6 million in the second
quarter this year but a loss of $24.3 million for the first six months. These
figures, in part, reflect losses from long positions in crude and products in a
down market and from lost time due to operational disruptions. In addition, the
Company's practice of pricing crude forward in a falling market resulted in
inventory losses as well, which impacted the quarter results.
Retail marketing operating results for the second quarter were
disappointing. Retail marketing reported a loss of $.6 million compared to a
$2.6 million profit for the second quarter of 1997. For the first six months of
1998, net retail profit totaled $3.5 million compared to $6.6 million for the
prior year period.
Retail same store gasoline volumes decreased 2.3% for the quarter while
overall gasoline volumes were up slightly. Merchandise gross margins improved
1.7% compared to the same period last year on a same store basis. Overall same
store merchandise sales were strong showing an increase of 7.9% for the quarter
and 5.2% for the six months. Store count increased to 344 units over the prior
period's 337.
Crown Chairman, Henry A. Rosenberg, Jr., in commenting on the results said,
"Consistent with a four year pattern, second quarter figures showed significant
improvement over those of the first quarter." Further, Mr. Rosenberg said,
"Despite the disappointing operating results, the Company's financial position
continues to be strong with good liquidity and a reasonable amount of debt in
proportion to the Company's total capitalization."
Headquartered in Baltimore, Maryland since 1930, Crown operates two Texas
refineries with a total capacity of 152,000 barrels per day, 344 Crown gasoline
stations and convenience stores in the Mid-Atlantic and Southeastern U.S., and
13 product terminals along the Colonial, Plantation and Texas Eastern Products
pipelines.
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
Six Months Ended Three Months Ended
June 30 June 30
1998 1997 1998 1997
--------- -------- --------- --------
Sales and operating $666,793 $789,181 $339,154 $393,079
revenues
(Loss) income before (24,367) 1 ( 12,891
income taxes 4,314 2,175 )
Net (loss) income (15,894) 8 ( 7,907
,631 2,151 )
Net (loss) income per
share:
Basic $ (1.62) $ .89 $ (.22) $ .82
Diluted (1.62) . ( .81
88 .22 )
Weighted average shares
used in the computation
of (loss) income per
share:
Basic 9,825,312 9 9 9,733,647
,733,813 ,838,915
Diluted 9,825,312 9 9 9,757,351
,853,887 ,838,915
EXHIBIT 20
CROWN CENTRAL PETROLEUM CORPORATION
OPERATING STATISTICS
Six Months Ended Three Months Ended
June 30 June 30
1998 1997 1998 1997
--------- --------- -------- --------
-
COMBINED REFINERY
OPERATIONS
- -----------------------
Production (BPD - M) 158 159 166 165
Production (MMbbl) 28.6 28.9 15.1 15.0
Sales (MMbbl) 31.1 30.7 16.1 16.4
Gross Margin ($/bbl) 1.36 2.40 2.34 2.76
Gross Profit ($MM) 42.2 73.7 37.7 45.3
Operating Cost ($/bbl) (2.14 ) (2.04) (1.99) (1.93 )
Operating Cost ($MM) (66.5 ) (62.7) (32.1) (31.8 )
Refining Operating (Loss) (24.3 ) 11.0 5.6 13.5
Profit ($MM)
RETAIL
- -----------------------
Number Stores 344 337 344 337
Volume (pmps - Mgal) 126 130 130 133
Volume (MMgal) 259 263 135 134
Gasoline Gross Margin 0.113 0.111 0.096 0.108
($/gal)
Gasoline Gross Profit ($MM) 29.2 29.3 12.9 14.4
Merchandise Sales (pmps - 26.0 25.1 28.3 26.2
$M)
Merchandise Sales ($MM) 53.6 50.7 29.2 26.5
Merchandise Gross Margin 30.8 30.8 30.1 30.9
(%)
Merchandise Gross Profit 16.5 15.6 8.8 8.2
($MM)
Retail Gross Profit ($MM) 45.7 44.9 21.7 22.6
Retail Operating Costs (20.4 ) (18.5) (21.4) (18.8 )
(pmps - $M)
Retail Operating Costs (42.0 ) (37.5) (22.1) (19.4 )
($MM)
Retail Non-Operating (0.2 ) (0.8) (0.2) (0.6 )
(Expense) ($MM)
Retail Operating Profit 3.5 6.6 (0.6) 2.6
(Loss) ($MM)
WHOLESALE / TERMINAL
OPERATING (LOSS) PROFIT (3.1 ) (2.8) 0.5 (0.7 )
($MM)
OTHER
- ----------
LIFO Recovery ($MM) 15.7 16.7 0.7 6.8
Corporate Overhead ($MM) (11.7 ) (10.4) (6.0) (5.4 )
Net Interest (Expense) (6.1 ) (5.9) (3.3) (2.9 )
($MM)
Other Income (Expense)($MM) 1.6 (0.9) 0.9 (1.0 )
Income Tax Benefit 8.5 (5.7) -- (5.0 )
(Expense) ($MM)
Total Net (Loss) Income (15.9 ) 8.6 (2.2) 7.9
($MM)
Depreciation & Amortization 16.6 15.3 8.5 7.5
($MM)
Net Interest Expense ($MM) 6.1 5.8 3.3 2.9
LIFO (Recovery) ($MM) (15.7 ) (16.7) (0.7) (6.8 )
(Gain) loss from Asset (0.2 ) (0.2) (0.2) 0.4
Disposals ($MM)
Income Tax (Benefit) (8.5 ) 5.7 -- 5.0
Expense ($MM)
EBITDAAL ($MM) (17.6 ) 18.5 8.7 16.9
Capital Expenditures ($MM) 16.7 12.2 6.7 5.1
<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>