EXHIBIT 99.1
GIANT INDUSTRIES, INC.
NEWS RELEASE
Contact: Mark B. Cox
Executive Vice President, Treasurer, & Chief Financial Officer
Giant Industries, Inc.
(480) 585-8888
FOR IMMEDIATE RELEASE
February 27, 2006
GIANT INDUSTRIES, INC. ANNOUNCES RECORD FOURTH QUARTER
AND RECORD FULL YEAR 2005 OPERATING RESULTS
Scottsdale, Arizona, February 27, 2006 - Giant Industries, Inc. [NYSE: GI]
announced today full year 2005 net earnings of $103.9 million or $7.62 per
diluted share versus net earnings of $16.2 million or $1.42 per diluted share
in 2004. For the fourth quarter of 2005, net earnings were $26.6 million or
$1.82 per diluted share compared to net earnings of $729,000 or $0.06 per
diluted share for the fourth quarter of 2004.
Fred Holliger, Giant's Chief Executive Officer, commented, "This past year
was an outstanding year for Giant as we grew earnings and improved our
balance sheet. In our Refining operations, stronger margins, both on the East
Coast and in the Four Corners region, resulted in operating income rising
approximately $111.6 million over 2004's level. Within our Wholesale
operations, Phoenix Fuel's continued growth in both wholesale and cardlock
fuel volumes, coupled with an increase in fuel margins, achieved an
improvement of approximately $6.8 million in operating income over the prior
year's level. Since its acquisition in July 2005, Dial Oil has also
contributed to earnings; in fact, their earnings have consistently exceeded
our original expectations. Our Retail operations continued to achieve growth
in both merchandise and fuel sales on a comparable store basis. This sales
growth combined with stronger fuel and merchandise margins resulted in an
approximately $4.7 million improvement in operating income over the prior
year level."
"Our fourth quarter 2005 results were quite strong given the fact that our
largest refinery did not operate the last week of November and the entire
month of December as a result of the fire that occurred at the facility on
November 25, 2005. In addition to the loss of production, Refining group
fourth quarter operating income was negatively impacted by approximately $3.5
million of expenses associated with the fire and expedited maintenance that
we chose to perform while the refinery was down. Refining operating income
for the quarter was up approximately 404% versus the fourth quarter of 2004.
On January 18, 2006, we resumed partial operations at the Yorktown refinery.
The refinery is operating at approximately two-thirds capacity or
approximately 40,000 barrels per day and is currently targeted to return to
full operation in April of this year."
"In the fourth quarter, the operating income contribution from our Wholesale
operations increased by approximately 109% as a result of improved margins at
Phoenix Fuel and the contribution from Dial Oil. Our Retail operations saw
operating income increase by approximately 272% versus the fourth quarter
2004, as a result of increased fuel and merchandise sales coupled with
improvement in both fuel and merchandise margins."
Holliger continued, "We also continue to make progress on improving our
balance sheet, as our debt-to-total capitalization ratio improved to 41% at
year-end versus 58% at the end of 2004. It's also worth noting that our debt-
to-total capitalization ratio, net of cash, improved to 22% at year-end
versus 55% at the end of last year."
Commenting on first quarter operations, Holliger said, "As a result of a
relatively mild winter and higher import levels that have contributed to a
build in inventory levels refining margins at Yorktown are currently lower
than the same time last year. Additionally, because of the fire we are not
operating our FCC unit at Yorktown. As a result, we are selling the
feedstocks for the FCC unit that would normally be processed into higher
valued gasoline and diesel. We have business interruption insurance coverage
for the earnings impact of the fire after the policy's 45-day waiting period
is exceeded, which occurred on January 9, 2006. Refining margins at the Four
Corners refineries are currently higher than the same time last year. We
continue to believe that the removal of MTBE from the gasoline pool later
this spring, and the transition to Ultra Low Sulfur Diesel this summer,
coupled with refining capacity constraints support a positive outlook for the
industry in 2006."
"The Wholesale group continues to experience growth in fuel volumes, but is
experiencing lower fuel margins compared to the same time last year. Our
Retail operations are continuing to experience growth in both merchandise and
fuel sales on a comparable store basis. Recently, fuel margins within our
Retail operations have improved primarily due to decreases in the cost of
fuel, while merchandise margins have remained stable."
Giant's senior management will hold a conference call at 1:00 p.m. EST (11:00
a.m. MST) on February 28, 2006 to discuss this earnings release and provide
an update on company operations. The conference call will be broadcast live
on the company's website at www.giant.com.
Giant Industries, Inc., headquartered in Scottsdale, Arizona, is a refiner
and marketer of petroleum products. Giant owns and operates one Virginia and
two New Mexico crude oil refineries, a crude oil gathering pipeline system
based in Farmington, New Mexico, which services the New Mexico refineries,
finished products distribution terminals in Albuquerque, New Mexico and
Flagstaff, Arizona, a fleet of crude oil and finished product truck
transports, and a chain of retail service station/convenience stores in New
Mexico, Colorado, and Arizona. Giant is also the parent Company of Phoenix
Fuel Co., Inc. and Dial Oil Co., both of which are wholesale petroleum
products distributors. For more information, please visit Giant's website at
www.giant.com.
This press release contains forward-looking statements that involve known and
unknown risks and uncertainties. Forward-looking statements are identified by
words or phrases such as "believes," "expects," "anticipates," "estimates,"
"should," "could," "plans," "intends," "will," variations of such words and
phrases, and other similar expressions. While these forward-looking
statements are made in good faith, and reflect the Company's current judgment
regarding such matters, actual results could vary materially from the
forward-looking statements. Important factors that could cause actual results
to differ from forward-looking statements include, but are not limited to:
the risk that the outlook for the industry will not remain positive, the risk
that the earnings for Dial will not continue to exceed our expectations, the
risk that the growth experienced by Wholesale Group and our Retail Group will
not continue, retail fuel margins will not continue to improve and positively
affect earnings, retail merchandise margins will not remain stable, we will
not be able to further strengthen our overall financial condition, our
Yorktown refinery will not be able to continue operating at 40,000 barrels
per day while repairs are being completed, the risk that the repairs to the
refinery could take longer than we expect, we will not receive anticipated
amounts of insurance recovery in connection with the Yorktown fire, and other
risks detailed from time to time in the Company's filings with the Securities
and Exchange Commission. All subsequent written and oral forward-looking
statements attributable to the Company, or persons acting on behalf of the
Company, are expressly qualified in their entirety by the foregoing. Forward-
looking statements made by the Company represent its judgment on the dates
such statements are made. The Company assumes no obligation to update any
forward-looking statements to reflect new or changed events or circumstance.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands except shares and per share data)
- ------------------------------------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
- ------------------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------------
Net revenues $ 920,938 $ 674,308 $ 3,581,246 $ 2,511,589
- ------------------------------------------------------------------------------------------------------------
Cost of products sold (excluding depreciation
and amortization) 798,110 603,414 3,093,191 2,186,070
Operating expenses 56,750 45,952 205,639 175,846
Depreciation and amortization 9,845 9,763 40,280 37,105
Selling, general and administrative expenses 10,100 9,472 45,173 37,834
Net loss on disposal of assets, including assets
held for sale 174 488 1,009 161
Gain from insurance settlement due to Ciniza fire - (2,949) (3,688) (3,907)
- ------------------------------------------------------------------------------------------------------------
Operating income 45,959 8,168 199,642 78,480
Interest expense (5,327) (7,685) (24,485) (32,907)
Costs associated with early debt extinguishment - 311 (2,082) (10,564)
Amortization of financing costs (399) (514) (2,797) (8,341)
Investment and other income 1,831 216 2,799 354
- ------------------------------------------------------------------------------------------------------------
Earnings from continuing operations before income taxes 42,064 496 173,077 27,022
Provision (benefit) for income taxes 15,369 (251) 69,146 10,684
- ------------------------------------------------------------------------------------------------------------
Earnings from continuing operations 26,695 747 103,931 16,338
(Loss) earnings from discontinued operations, net of
income tax benefit (provision) of $11, ($9) and $73 - (18) 15 (117)
- ------------------------------------------------------------------------------------------------------------
Cumulative effect of change in accounting principle,
net of income tax benefit of $46 (68) - (68) -
- ------------------------------------------------------------------------------------------------------------
Net earnings $ 26,627 $ 729 $ 103,878 $ 16,221
============================================================================================================
Net earnings (loss) per common share:
Basic
Continuing operations $ 1.84 $ 0.06 $ 7.71 $ 1.47
Discontinued operations $ - $ - $ - $ (0.01)
Cumulative effect of change
in accounting principle $ (0.01) $ - $ (0.01) $ -
============================================================================================================
Assuming dilution
Continuing operations $ 1.83 $ 0.06 $ 7.63 $ 1.43
Discontinued operations $ - $ - $ - $ (0.01)
Cumulative effect of change
in accounting principle $ (0.01) $ - $ (0.01) $ -
============================================================================================================
Weighted average number of shares outstanding:
Basic 14,518,874 12,330,646 13,485,702 11,104,938
Assuming dilution 14,626,099 12,535,479 13,629,132 11,358,298
============================================================================================================
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
- -----------------------------------------------------------------------------------------
December 31, 2005 December 31, 2004
- -----------------------------------------------------------------------------------------
Assets
Current assets $ 442,355 $ 232,005
- -----------------------------------------------------------------------------------------
Property, plant and equipment 764,788 671,851
Less accumulated depreciation and amortization (297,962) (265,475)
- -----------------------------------------------------------------------------------------
466,826 406,376
Other assets 75,291 64,025
- -----------------------------------------------------------------------------------------
Total Assets $ 984,472 $ 702,406
=========================================================================================
Liabilities and Stockholders' Equity
Current liabilities $ 208,508 $ 128,833
Long-term debt 274,864 292,759
Deferred income taxes 76,834 41,039
Other liabilities 24,430 23,336
Stockholders' equity 399,836 216,439
- -----------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 984,472 $ 702,406
=========================================================================================
Certain reclassifications have been made to the year 2004 financial statements to conform to
classifications used in 2005. These reclassifications had no effect on reported earnings or
stockholders' equity.
OPERATING STATISTICS
4 Qtr. 2005 3 Qtr. 2005 2 Qtr. 2005 1 Qtr. 2005 4 Qtr. 2004
- --------------------------------------------------------------------------------------------------------
Refining Group:
- ---------------
Four Corners Operations:
Crude Oil/NGL Throughput (BPD) 29,033 29,867 29,811 28,810 29,088
Refinery Sourced Sales Barrels (BPD) 27,075 29,096 29,344 28,559 28,198
Avg. Crude Oil Costs ($/Bbl) $ 60.21 $ 60.59 $ 51.64 $ 47.46 $ 47.18
Refining Margins ($/Bbl) $ 16.64 $ 18.08 $ 13.48 $ 7.86 $ 7.36
Retail Fuel Volumes Sold as a % of
Four Corners Refinery's Sourced
Sales Barrels 37% 38% 37% 37% 37%
Yorktown Operations:
Crude Oil/NGL Throughput (BPD) 41,685 68,201 68,449 65,740 52,941
Refinery Sourced Sales Barrels (BPD) 45,566 70,936 71,539 62,726 56,854
Avg. Crude Oil Costs ($/Bbl) $ 57.72 $ 58.05 $ 48.76 $ 44.96 $ 44.55
Refining Margins ($/Bbl) $ 9.61 $ 11.25 $ 7.30 $ 6.78 $ 4.56
Retail Group:(1)
- -------------
Fuel Gallons Sold (000's) 39,229 42,529 41,410 39,469 40,253
Fuel Margins ($/gal) $ 0.29 $ 0.21 $ 0.17 $ 0.11 $ 0.17
Merchandise Sales ($ in 000's) $ 34,524 $ 38,285 $ 36,325 $ 31,287 $ 32,635
Merchandise Margins 28% 27% 27% 27% 26%
Number of Operating Units at
End of Period 123 124 124 125 124
Wholesale Group:
- ----------------
Phoenix Fuel
- ------------
Fuel Gallons Sold (000's) 119,029 118,844 120,344 120,865 116,569
Fuel Margins ($/gal) $ 0.08 $ 0.08 $ 0.06 $ 0.06 $ 0.06
Lubricant Sales ($ in 000's) $ 8,295 $ 8,247 $ 9,027 $ 8,412 $ 7,962
Lubricant Margins 14% 28% 10% 14% 13%
Dial Oil
- --------
Fuel Gallons Sold (000's) 28,491 24,963 - - -
Fuel Margins ($/gal) $ 0.18 $ 0.12 - - -
Lubricant Sales ($ in 000's) $ 6,494 $ 5,833 - - -
Lubricant Margins 16% 13% - - -
Merchandise Sales ($ in 000's) $ 1,800 $ 2,241 - - -
Merchandise Margins 36% 26% - - -
Operating Retail Outlets at Period End 12 12 - - -
========================================================================================================
4 Qtr. 2005 3 Qtr. 2005 2 Qtr. 2005 1 Qtr. 2005 4 Qtr. 2004
- --------------------------------------------------------------------------------------------------------
Operating Income (Loss) (before
corporate allocations) (in 000's)
- -----------------------------------
Refining - Four Corners Operations $ 22,539 $ 32,968 $ 19,724 $ 6,285 $ 2,899
- Yorktown Operations 16,533 52,288 27,312 17,650 4,854
Retail(1) 6,169 3,804 3,114 (1,679) 1,658
Wholesale:
Phoenix Fuel 4,110 6,641 2,815 3,699 3,194
Dial Oil 2,581 1,509 - - -
Corporate (5,800) (11,698) (8,557) (5,043) (6,922)
Net (loss) gain on disposal/write-down
of assets(1)(2) (174) (1,055) 425 3,505 2,455
- --------------------------------------------------------------------------------------------------------
Total(1) $ 45,958 $ 84,457 $ 44,833 $ 24,417 $ 8,138
========================================================================================================
Capital Expenditures (in 000's)(3)
- ----------------------------------
Refining - Four Corners Operations(4) $ 5,687 $ 3,958 $ 1,930 $ 1,167 $ 1,302
- Yorktown Operations 14,190 14,734 10,790 9,837 12,635
Retail 1,488 1,221 1,230 780 4,220
Wholesale:
Phoenix Fuel 366 470 576 458 414
Dial Oil 163 58 - - -
Corporate 375 252 345 584 259
- --------------------------------------------------------------------------------------------------------
Total $ 22,269 $ 20,693 $ 14,871 $ 12,826 $ 18,830
========================================================================================================
(1) Includes discontinued operations.
(2) Includes insurance proceeds related to the Ciniza fire incident.
(3) Excludes Yorktown refinery acquisition contingent payments.
(4) Includes disbursements related to the Ciniza fire incident.
Selected Financial Data
December 31, 2005 December 31, 2004
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Working Capital (In Thousands) $ 233,847 $ 103,172
Current Ratio 2.12:1 1.80:1
Long-Term Debt As A Percent of Total Capital(5) 40.7% 57.5%
Net Debt As A Percent of Total Net Capital(6) 21.7% 55.4%
Book Value Per Share(7) $ 27.36 $ 17.55
Net cash provided by operating activities $ 188,808 $ 76,514
- -------------------------------------------------------------------------------------
(5) Total capital represents long-term debt plus total stockholders' equity.
(6) Net debt represents long-term debt less cash and cash equivalents. Total net
capital represents long-term debt less cash and cash equivalents plus total
stockholders' equity.
(7) Book value per share represents total stockholders' equity divided by number
of common shares outstanding.
Share Price Data (NYSE: GI)
High Low Close
- -------------------------------------------
2005 4th Quarter $60.50 $47.80 $51.96
2005 3rd Quarter $59.74 $35.90 $58.54
2005 2nd Quarter $36.49 $25.52 $36.00
2005 1st Quarter $31.81 $23.54 $25.70
2004 4th Quarter $28.98 $22.00 $26.51
RECONCILIATIONS TO AMOUNTS REPORTED UNDER GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES
REFINING GROUP
Refining Margin
- ---------------
Refining margin is the difference between average net sales prices and
average cost of products produced per refinery sourced sales barrel of
refined product. Refining margins for each of our refineries and all of our
refineries on a consolidated basis are calculated as shown below.
Three Months Ended Twelve Months Ended
December 31, December 31,
- ------------------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------------
AVERAGE PER BARREL
Four Corners Operations
Net sales $ 78.22 $ 57.46 $ 72.42 $ 52.15
Less cost of products 61.58 50.10 58.39 43.19
- ------------------------------------------------------------------------------------------------------------
Refining margin $ 16.64 $ 7.36 $ 14.03 $ 8.96
============================================================================================================
Yorktown Operations
Net sales $ 68.17 $ 50.57 $ 62.66 $ 45.11
Less cost of products 58.56 46.01 53.94 39.51
- ------------------------------------------------------------------------------------------------------------
Refining margin $ 9.61 $ 4.56 $ 8.72 $ 5.60
============================================================================================================
Consolidated
Net sales $ 71.92 $ 52.85 $ 65.71 $ 47.29
Less cost of products 56.68 47.37 55.33 40.65
- ------------------------------------------------------------------------------------------------------------
Refining margin $ 15.24 $ 5.48 $ 10.38 $ 6.64
============================================================================================================
Reconciliations of refined product sales from
produced products sold per barrel to net revenues
Four Corners Operations
Average sales price per produced barrel sold $ 78.22 $ 57.46 $ 72.42 $ 52.15
Times refinery sourced sales barrels per day 27,075 28,198 28,516 27,355
Times number of days in period 92 92 365 366
- ------------------------------------------------------------------------------------------------------------
Refined product sales from produced
products sold (000's) $194,838 $149,064 $ 753,772 $ 522,122
============================================================================================================
Yorktown Operations
Average sales price per produced barrel sold $ 68.17 $ 50.57 $ 62.66 $ 45.11
Times refinery sourced sales barrels per day 45,566 56,854 62,667 60,999
Times number of days in period 92 92 365 366
- ------------------------------------------------------------------------------------------------------------
Refined product sales from produced
products sold (000's) $285,774 $264,510 $1,433,251 $1,007,109
============================================================================================================
Consolidated (000's)
Sum of refined product sales from produced
products sold* $480,612 $413,574 $2,187,023 $1,529,231
Purchased product, Transportation and
other revenues 120,306 51,473 266,484 202,039
- ------------------------------------------------------------------------------------------------------------
Net revenue $600,918 $465,047 $2,453,507 $1,731,270
============================================================================================================
*Includes inter-segment net revenues.
Three Months Ended Twelve Months Ended
December 31, December 31,
- ---------------------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
Reconciliation of average cost of products per
produced per barrel sold to total cost of products
sold (excluding depreciation and amortization)
Four Corners Operations
Average cost of products per produced barrel sold $ 61.58 $ 50.10 $ 58.39 $ 43.19
Times refinery sourced sales barrels per day 27,075 28,198 28,516 27,355
Times number of days in period 92 92 365 366
- ---------------------------------------------------------------------------------------------------------------
Cost of products for produced products
sold (000's) $153,389 $129,970 $ 607,743 $ 432,415
===============================================================================================================
Yorktown Operations
Average cost of products per produced barrel sold $ 58.56 $ 46.01 $ 53.94 $ 39.51
Times refinery sourced sales barrels per day 45,566 56,854 62,667 60,999
Times number of days in period 92 92 365 366
- ---------------------------------------------------------------------------------------------------------------
Cost of products for produced products sold (000's) $245,488 $240,658 $1,233,794 $ 882,086
===============================================================================================================
Consolidated
Sum of refined cost of produced products sold $398,877 $370,628 $1,841,537 $1,314,501
Purchased product, transportation and other cost
of products sold 114,554 45,120 236,363 175,706
- ---------------------------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) $513,431 $415,748 $2,077,900 $1,490,207
===============================================================================================================
RETAIL GROUP
Fuel Margin
- -----------
Fuel margin is the difference between fuel sales less cost of fuel sales divided by number of gallons sold.
Three Months Ended Twelve Months Ended
December 31, December 31,
- ---------------------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
(in 000's except fuel margin per gallon)
Fuel sales $ 99,697 $ 78,485 $ 381,166 $ 291,923
Less cost of fuel sold 88,344 71,511 349,467 263,484
- ---------------------------------------------------------------------------------------------------------------
Fuel margin $ 11,353 $ 6,974 $ 31,699 $ 28,439
Number of gallons sold 39,229 40,253 162,637 156,917
Fuel margin per gallon $ 0.29 $ 0.17 $ 0.19 $ 0.18
Reconciliation of fuel sales to net revenues (000's)
Fuel sales $ 99,697 $ 78,485 $ 381,166 $ 291,923
Excise taxes included in sales (16,665) (16,796) (62,671) (58,867)
- ---------------------------------------------------------------------------------------------------------------
Fuel sales, net of excise taxes 83,032 61,689 318,495 233,056
Merchandise sales 34,524 32,635 140,422 134,012
Other sales 4,872 4,003 16,824 15,119
- ---------------------------------------------------------------------------------------------------------------
Net revenues $ 122,428 $ 98,327 $ 475,741 $ 382,187
===============================================================================================================
Reconciliation of fuel cost of products sold to
total cost of products sold (excluding depreciation
and amortization) (000's)
Fuel cost of products sold $ 88,344 $ 71,511 $ 349,467 $ 263,484
Excise taxes included in cost of products sold (16,665) (16,796) (62,671) (58,867)
- ---------------------------------------------------------------------------------------------------------------
Fuel cost of products sold, net of excise taxes 71,679 54,715 286,796 204,617
Merchandise cost of products sold 24,910 24,248 102,079 101,891
Other cost of products sold 3,971 3,256 13,466 12,044
- ---------------------------------------------------------------------------------------------------------------
Total cost of products sold (excluding depreciation
and amortization) $ 100,560 $ 82,219 $ 402,341 $ 318,552
===============================================================================================================
WHOLESALE GROUP
Fuel Margin
- -----------
Fuel margin is the difference between fuel sales less cost of fuel sales divided by number of gallons sold.
Phoenix Fuel
- ------------
Three Months Ended Twelve Months Ended
December 31, December 31,
- ---------------------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
(in 000's except fuel margin per gallon)
Fuel sales $ 273,394 $ 211,845 $1,033,660 $ 807,158
Less cost of fuel sold 264,225 204,807 1,000,488 781,223
- ---------------------------------------------------------------------------------------------------------------
Fuel margin $ 9,169 $ 7,038 $ 33,172 $ 25,935
Number of gallons sold 119,029 116,569 479,083 473,009
Fuel margin per gallon $ 0.08 $ 0.06 $ 0.07 $ 0.05
Reconciliation of fuel sales to net revenues (000's)
Fuel sales $ 273,394 $ 211,845 $1,033,660 $ 807,158
Excise taxes included in sales (43,277) (38,669) (162,780) (160,776)
- ---------------------------------------------------------------------------------------------------------------
Fuel sales, net of excise taxes 230,117 173,176 870,880 646,382
Lubricant sales 8,295 7,962 33,981 30,597
Other sales 535 813 3,937 3,596
- ---------------------------------------------------------------------------------------------------------------
Net revenues $ 238,947 $ 181,951 $ 908,798 $ 680,575
===============================================================================================================
Reconciliation of fuel cost of products sold to
total cost of products sold (excluding depreciation
and amortization) (000's)
Fuel cost of products sold $ 264,225 $ 204,807 $1,000,488 $ 781,223
Excise taxes included in cost of products sold (43,277) (38,669) (162,780) (160,776)
- ---------------------------------------------------------------------------------------------------------------
Fuel cost of products sold, net of excise taxes 220,948 166,138 837,708 620,447
Lubricant cost of products sold 7,159 6,964 28,427 26,633
Other cost of products sold 267 262 992 605
- ---------------------------------------------------------------------------------------------------------------
Total cost of products sold (excluding depreciation
and amortization) $ 228,374 $ 173,364 $ 867,127 $ 647,685
===============================================================================================================
Dial Oil(1),(2)
- ---------------
Three Months Ended Twelve Months Ended
December 31, December 31,
- ---------------------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
(in 000's except fuel margin per gallon)
Fuel sales $ 60,403 $ - $ 112,656 $ -
Less cost of fuel sold 55,414 - 104,733 -
- ---------------------------------------------------------------------------------------------------------------
Fuel margin $ 4,989 $ - $ 7,923 $ -
Number of gallons sold 28,491 - 53,453 -
Fuel margin per gallon $ 0.18 $ - $ 0.15 $ -
Reconciliation of fuel sales to net revenues (000's)
Fuel sales $ 60,403 $ - $ 112,656 $ -
Lubricant and merchandise sales 8,295 - 16,869 -
Other sales 703 - 1,465 -
- ---------------------------------------------------------------------------------------------------------------
Net revenues $ 69,401 $ - $ 130,990 $ -
===============================================================================================================
Reconciliation of cost of fuel sold to total
cost of products sold (excluding depreciation
and amortization)
Fuel cost of products sold $ 55,414 $ - $ 104,733 $ -
Lubricants and merchandise cost of products sold 6,637 - 13,803 -
Other cost of products sold 361 - 361 -
- ---------------------------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) $ 62,412 $ - $ 118,897 $ -
===============================================================================================================
(1) Statistics presented are from July 12, 2005 to December 31, 2005.
(2) Dial Oil presents sales and cost of sales, net of excise taxes.
Consolidated
- ------------
Three Months Ended Twelve Months Ended
December 31, December 31,
- ---------------------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
Reconciliation to net revenues reported in
Condensed Consolidated Statement of Earnings (000's)
Net revenues - Refinery Group $ 600,918 $ 465,047 $2,453,507 $1,731,270
Net revenues - Retail Group 122,428 98,327 475,741 382,187
Net revenues - Wholesale Group:
Net revenues - Phoenix Fuel 238,947 181,951 908,798 680,575
Net revenues - Dial Oil 69,401 - 130,990 -
Net revenues - Other 77 43 455 529
Eliminations (110,833) (71,060) (388,245) (282,972)
- ---------------------------------------------------------------------------------------------------------------
Total net revenues reported in Condensed
Consolidated Statement of Earnings $ 920,938 $ 674,308 $3,581,246 $2,511,589
===============================================================================================================
Reconciliation to cost of products sold
(excluding depreciation and amortization) in
Condensed Consolidated Statement of Earnings (000's)
Cost of products sold - Refinery Group
(excluding depreciation and amortization) $ 513,431 $ 415,748 $2,077,900 $1,490,207
Cost of products sold - Retail Group (excluding
depreciation and amortization) 100,560 82,219 402,341 318,552
Cost of products sold - Wholesale Group:
Cost of products sold - Phoenix Fuel
(excluding depreciation and amortization) 228,374 173,364 867,127 647,685
Cost of products sold - Dial Oil (excluding
depreciation and amortization) 62,412 - 118,897 -
Eliminations (110,833) (71,060) (388,245) (282,972)
Other 4,166 3,143 15,171 12,598
- ---------------------------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) reported in
Condensed Consolidated Statement of Earnings $ 798,110 $ 603,414 $3,093,191 $2,186,070
===============================================================================================================
Our refining margin per barrel is calculated by subtracting cost of products from net sales and dividing the
result by the number of barrels sold for the period. Our fuel margin per gallon is calculated by subtracting
cost of fuel sold from fuel sales and dividing the result by the number of gallons sold for the period. We use
refining margin per barrel and fuel margin per gallon to evaluate performance, and allocate resources. These
measures may not be comparable to similarly titled measures used by other companies. Investors and analysts use
these financial measures to help analyze and compare companies in the industry on the basis of operating
performance. These financial measures should not be considered as alternatives to segment operating income,
revenues, costs of sales and operating expenses or any other measure of financial performance presented in
accordance with accounting principles generally accepted in the United States of America.