FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Period Ended February 28, 2002
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
------------------------ ----------------------
Commission File No. 333-35083
UNITED REFINING COMPANY
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 25-1411751
- ------------------------------------ ------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15 BRADLEY STREET
WARREN, PENNSYLVANIA 16365
- -------------------- ---------
(address of principal (Zip Code)
executive office)
Registrant's telephone number, including area code 814-726-4674
------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
Number of shares outstanding of Registrant's Common Stock as of April 15, 2002:
100.
- ------------------------------------------------------------------------------------------------------------------------------
TABLE OF ADDITIONAL REGISTRANTS
- ------------------------------------------------------------------------------------------------------------------------------
State of Other Primary Standard IRS Employer
Jurisdiction of Industrial Identification Commission File
Name Incorporation Classification Number Number Number
- ------------------------------------------------------------------------------------------------------------------------------
Kiantone Pipeline Corporation New York 4612 25-1211902 333-35083-01
- ------------------------------------------------------------------------------------------------------------------------------
Kiantone Pipeline Company Pennsylvania 4600 25-1416278 333-35083-03
- ------------------------------------------------------------------------------------------------------------------------------
United Refining Company of Pennsylvania 5541 25-0850960 333-35083-02
Pennsylvania
- ------------------------------------------------------------------------------------------------------------------------------
United Jet Center, Inc. Delaware 4500 52-1623169 333-35083-06
- ------------------------------------------------------------------------------------------------------------------------------
Kwik Fill Corporation Pennsylvania 5541 25-1525543 333-35083-05
- ------------------------------------------------------------------------------------------------------------------------------
Independent Gas and Oil Company of New York 5170 06-1217388 333-35083-11
Rochester, Inc.
- ------------------------------------------------------------------------------------------------------------------------------
Bell Oil Corp. Michigan 5541 38-1884781 333-35083-07
- ------------------------------------------------------------------------------------------------------------------------------
PPC, Inc. Ohio 5541 31-0821706 333-35083-08
- ------------------------------------------------------------------------------------------------------------------------------
Super Test Petroleum, Inc. Michigan 5541 38-1901439 333-35083-09
- ------------------------------------------------------------------------------------------------------------------------------
Kwik-Fil, Inc. New York 5541 25-1525615 333-35083-04
- ------------------------------------------------------------------------------------------------------------------------------
Vulcan Asphalt Refining Corporation Delaware 2911 23-2486891 333-35083-10
- ------------------------------------------------------------------------------------------------------------------------------
Country Fair, Inc. Pennsylvania 5541 25-1149799 333-35083-12
- ------------------------------------------------------------------------------------------------------------------------------
2
PART I. FINANCIAL INFORMATION PAGE(S)
- --------------------------------
Item 1. Financial Statements
Consolidated Balance Sheets -
February 28, 2002 and August 31, 2001 4
Consolidated Statements of Operations -
Six Months and Quarters Ended February 28, 2002 and 2001 5
Consolidated Statements of Cash Flows -
Six Months Ended February 28, 2002 and 2001 6
Notes to Consolidated Financial Statements 7-14
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 15-19
PART II. OTHER INFORMATION 20
- -----------------------------
3
UNITED REFINING COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
=================================================================================================================================
FEBRUARY 28,
2002 AUGUST 31,
(UNAUDITED) 2001
------------------------------------------------------------------------------------------------------------------------
ASSETS
CURRENT:
Cash and cash equivalents $ 8,219 $ 35,224
Accounts receivable, net 29,053 41,937
Inventories 85,482 62,554
Prepaid expenses and other assets 16,863 13,312
------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 139,617 153,027
PROPERTY, PLANT AND EQUIPMENT, NET 189,699 190,951
INVESTMENT IN AFFILIATED COMPANY 2,119 1,529
DEFERRED FINANCING COSTS 3,770 4,102
OTHER ASSETS 21,838 5,948
------------------------------------------------------------------------------------------------------------------------
$ 357,043 $ 355,557
========================================================================================================================
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT:
Revolving credit facility $ 20,000 $ -
Current installments of long-term debt 106 121
Accounts payable 32,695 22,206
Income taxes payable - 2,373
Accrued liabilities 12,887 12,411
Sales, use and fuel taxes payable 14,577 16,686
Deferred income taxes 4,157 4,157
Amounts due affiliated companies 226 1,905
------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 84,648 59,859
LONG TERM DEBT: LESS CURRENT INSTALLMENTS 180,931 180,979
DEFERRED INCOME TAXES 9,738 17,573
DEFERRED GAIN ON SETTLEMENT OF PENSION PLAN OBLIGATIONS 1,452 1,560
DEFERRED RETIREMENT BENEFITS 20,529 19,356
OTHER NONCURRENT LIABILITIES 2,381 264
------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 299,679 279,591
------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY:
Common stock, $.10 par value per share - shares authorized
100; issued and outstanding 100 - -
Additional paid-in capital 16,648 16,648
Retained earnings 40,716 59,318
------------------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDER'S EQUITY 57,364 75,966
------------------------------------------------------------------------------------------------------------------------
$ 357,043 $ 355,557
========================================================================================================================
4
UNITED REFINING COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - (UNAUDITED)
(IN THOUSANDS)
===================================================================================================================================
THREE MONTHS ENDED SIX MONTHS ENDED
FEBRUARY, FEBRUARY,
----------------------------- ------------------------------
2002 2001 2002 2001
----------------------------------------------------------------------------------------------------------------------------
NET SALES $ 214,728 $ 246,218 $ 443,232 $ 542,401
COSTS OF GOODS SOLD 189,310 220,052 412,694 485,588
----------------------------------------------------------------------------------------------------------------------------
GROSS PROFIT 25,418 26,166 30,538 56,813
----------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Selling, general and administrative expenses 23,923 17,716 42,312 36,611
Depreciation and amortization expenses 2,998 2,733 5,958 5,465
----------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 26,921 20,449 48,270 42,076
----------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) (1,503) 5,717 (17,732) 14,737
----------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Interest income 48 385 288 916
Interest expense (4,925) (5,512) (9,804) (10,952)
Other, net (317) (173) (794) (520)
Costs associated with acquisition - - - (1,300)
Equity in net earnings of affiliate 235 - 590 -
----------------------------------------------------------------------------------------------------------------------------
(4,959) (5,300) (9,720) (11,856)
----------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) (6,462) 417 (27,452) 2,881
INCOME TAX EXPENSE (BENEFIT) (2,610) 175 (10,980) 1,210
----------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEM (3,852) 242 (16,472) 1,671
EXTRAORDINARY ITEM, NET OF TAX OF $1,367 - 1,888 - 1,888
----------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) $ (3,852) $ 2,130 $ (16,472) $ 3,559
============================================================================================================================
5
UNITED REFINING COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED)
(IN THOUSANDS)
=======================================================================================================================
SIX MONTHS ENDED
FEBRUARY 28,
-------------------------------------
2002 2001
---------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (16,472) $ 3,559
Adjustments to reconcile net income (loss) to net
cash used in operating activities:
Depreciation and amortization 7,628 7,413
Post-retirement benefits 718 1,686
Change in deferred income taxes (4,474) 860
Gain on extinguishment of debt - (3,255)
Equity in net earnings of affiliate (590) -
Gain (loss) on asset dispositions 210 44
Cash used in working capital items (9,233) (8,227)
Other, net (1,160) (3,094)
---------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTMENTS (6,901) (4,573)
---------------------------------------------------------------------------------------------------------------
NET CASH USED IN OPERATING ACTIVITIES (23,373) (1,014)
---------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of business, net of cash acquired (16,900) -
Purchase of investment securities - (3,714)
Sale of investment securities - 3,497
Additions to property, plant and equipment (4,499) (5,612)
Proceeds from asset dispositions 2 23,531
---------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (21,397) 17,702
---------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings on revolving credit facility 20,000 -
Dividends (2,130) -
Deferred financing costs (42) -
Principal reductions of long-term debt (63) (6,563)
---------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 17,765 (6,563)
---------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (27,005) 10,125
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 35,224 7,430
---------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 8,219 $ 17,555
===============================================================================================================
CASH PROVIDED BY (USED IN) WORKING CAPITAL ITEMS:
Accounts receivable, net $ 13,689 $ 12,167
Inventories (16,928) (23,839)
Prepaid expenses and other assets (1,888) (1,660)
Accounts payable 3,863 9,557
Accrued liabilities (378) (2,152)
Amounts due affiliated companies (1,679) -
Income taxes payable (2,533) 917
Sales, use and fuel taxes payable (3,379) (3,217)
---------------------------------------------------------------------------------------------------------------
TOTAL CHANGE $ (9,233) $ (8,227)
===============================================================================================================
6
UNITED REFINING COMPANY
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
==================================================================================================================
1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been
prepared in accordance with accounting principles generally accepted
in the United States of America for interim financial information and
with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United
States of America for complete financial statements. In the opinion of
management, all adjustments (consisting of only normal recurring
accruals) considered necessary for a fair presentation have been
included. Operating results for the three and six month periods ended
February 28, 2002 are not necessarily indicative of the results that
may be expected for the year ending August 31, 2002. For further
information, refer to the consolidated financial statements and
footnotes thereto incorporated by reference in the Company's Form 10-K
filing dated November 29, 2001.
2. RECENT ACCOUNTING STANDARDS In June 2001, the Financial Accounting Standards Board ("FASB")
finalized Statements No. 141, "Business Combinations," ("Statement
141") and No. 142, "Goodwill and Other Intangible Assets" ("Statement
142"). Statement 141 requires the use of the purchase method of
accounting and prohibits the use of the pooling-of-interests method of
accounting for business combinations initiated after June 30, 2001.
Statement 141 also requires that the Company recognize acquired
intangible assets apart from goodwill if the acquired intangible
assets meet certain criteria. Statement 141 applies to all business
combinations initiated after June 30, 2001 and for purchase business
combinations completed on or after July 1, 2001. It also requires,
upon adoption of Statement 142 that the Company reclassify the
carrying amounts of intangible assets and goodwill based on the
criteria in Statement 141.
Statement 142 requires, among other things, that companies no longer
amortize goodwill, but instead test goodwill for impairment at least
annually. In addition, Statement 142 requires that the Company
identify reporting units for the purposes of assessing potential
future impairments of goodwill, reassess the useful lives of other
existing recognized intangible assets, and cease amortization of
intangible assets with an indefinite useful life. An intangible asset
with an indefinite useful life should be tested for impairment in
accordance with the guidance in Statement 142. Statement 142 is
required to be applied in fiscal years beginning after December 15,
2001 to all goodwill and other intangible assets recognized at that
date, regardless of when those assets were initially recognized.
Statement 142 requires the Company to complete a transitional goodwill
impairment test six months from the date of adoption. The Company
7
UNITED REFINING COMPANY
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
==================================================================================================================
is also required to reassess the useful lives of other intangible
assets within the first interim quarter after adoption of Statement
142.
The Company anticipates that the adoption of Statements 141 and 142
will not have a material effect on the Company's financial position or
results of operations.
In October 2001, the FASB issued Statement No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets" ("Statement 144").
Statement 144 supersedes Statement No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed of" ("Statement 121") and retains the basic requirements of
Statement 121 regarding when and how to measure an impairment loss.
Statement 144 provides additional implementation guidance on
accounting for an impairment loss. Statement 144 is effective for all
fiscal years beginning after December 15, 2001.
The Company anticipates that the adoption of Statement 144 will not
have a material effect on the Company's financial position or results
of operations.
3. RECLASSIFICATION Certain amounts in the prior year's consolidated financial statements
have been reclassified to conform with the presentation in the current
year.
4. INVENTORIES Inventories consist of the following:
FEBRUARY 28, 2002
(UNAUDITED) AUGUST 31, 2001
---------------------------------------------------------------------------------------------
Crude Oil $ 17,927 $ 15,236
Petroleum Products 39,014 24,412
-----------------------------------------------
Total @ LIFO 56,941 39,648
-----------------------------------------------
Merchandise 15,218 10,099
Supplies 13,323 12,807
-----------------------------------------------
Total @ FIFO 28,541 22,906
-----------------------------------------------
Total Inventory $ 85,482 $ 62,554
=============================================================================================
5. SUBSIDIARY GUARANTORS Certain of United Refining Company's (the "issuer") subsidiaries
function as guarantors under the terms of the $200,000,000 Senior
Unsecured Note Indenture due June 9, 2007. Financial information for
the Company's wholly owned subsidiary guarantors is as follows:
8
UNITED REFINING COMPANY
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
===================================================================================================================================
Condensed Consolidating Balance Sheets
(in thousands)
February 28, 2002 August 31, 2001
----------------------------------------------- -----------------------------------------------
Issuer Guarantors Eliminations Consolidated Issuer Guarantors Eliminations Consolidated
----------------------------------------------- -----------------------------------------------
Assets
Current:
Cash and cash equivalents $ 3,195 $ 5,024 $ - $ 8,219 $ 29,197 $ 6,027 $ - $ 35,224
Accounts receivable, net 20,624 8,429 - 29,053 32,669 9,268 - 41,937
Inventories 64,204 21,278 - 85,482 47,177 15,377 - 62,554
Prepaid expenses and
other assets 12,221 4,642 - 16,863 11,154 2,158 - 13,312
Intercompany 97,771 17,833 (115,604) - 81,308 18,345 (99,653) -
---------------------------------------------- -----------------------------------------------
Total current assets 198,015 57,206 (115,604) 139,617 201,505 51,175 (99,653) 153,027
Property, plant and
equipment, net 119,563 70,136 - 189,699 121,074 69,877 - 190,951
Investment in affiliated
company 2,119 - - 2,119 1,529 - - 1,529
Deferred financing costs, net 3,770 - - 3,770 4,102 - - 4,102
Other assets 5,959 17,050 (1,171) 21,838 6,665 454 (1,171) 5,948
---------------------------------------------- -----------------------------------------------
$329,426 $144,392 $(116,775) $357,043 $334,875 $121,506 $(100,824) $355,557
============================================== ===============================================
Liabilities and Stockholder's
Equity
Current:
Revolving credit facility $ 20,000 $ - $ - $ 20,000 $ - $ - $ - $ -
Current installments of
long-term debt - 106 - 106 - 121 - 121
Accounts payable 19,772 12,923 - 32,695 16,857 5,349 - 22,206
Income taxes payable - - - - 2,413 (40) - 2,373
Accrued liabilities 9,482 3,405 - 12,887 9,739 2,672 - 12,411
Sales, use and fuel
taxes payable 12,711 1,866 - 14,577 16,542 144 - 16,686
Deferred income taxes 4,507 (350) - 4,157 4,507 (350) - 4,157
Amounts due affiliated
companies 141 85 - 226 1,495 410 - 1,905
Intercompany - 115,604 (115,604) - - 99,653 (99,653) -
---------------------------------------------- -----------------------------------------------
Total current liabilities 66,613 133,639 (115,604) 84,648 51,553 107,959 (99,653) 59,859
Long term debt: less current 180,135 796 - 180,931 180,135 844 - 180,979
installments
Deferred income taxes 7,085 2,653 - 9,738 11,009 6,564 - 17,573
Deferred gain on settlement of
pension plan obligations 1,452 - - 1,452 1,560 - - 1,560
Deferred retirement benefits 19,315 1,214 - 20,529 18,610 746 - 19,356
Other noncurrent liabilities - 2,381 - 2,381 - 264 - 264
---------------------------------------------- -----------------------------------------------
Total liabilities 274,600 140,683 (115,604) 299,679 262,867 116,377 (99,653) 279,591
---------------------------------------------- -----------------------------------------------
Commitment and contingencies
Stockholder's equity
Common stock, $.10 par value
per share - shares
authorized 100; issued
and outstanding, 100 - 18 (18) - - 18 (18) -
Additional paid-in capital 7,150 10,651 (1,153) 16,648 7,150 10,651 (1,153) 16,648
Retained earnings 47,676 (6,960) - 40,716 64,858 (5,540) - 59,318
---------------------------------------------- -----------------------------------------------
Total stockholder's equity 54,826 3,709 (1,171) 57,364 72,008 5,129 (1,171) 75,966
---------------------------------------------- -----------------------------------------------
$329,426 $ 144,392 $(116,775) $357,043 $334,875 $121,506 $(100,824) $355,557
============================================== ===============================================
9
UNITED REFINING COMPANY
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
===================================================================================================================================
Condensed Consolidating Statements of Operations
(in thousands)
Three Months Ended February 28, 2002 Three Months Ended February 28, 2001
----------------------------------------------- ---------------------------------------------
Issuer Guarantors Eliminations Consolidated Issuer Guarantors Elimination Consolidated
------------------------------------------------------------------------------------------------
Net sales $125,198 $126,348 $(36,818) $214,728 $182,485 $117,187 $(53,454) $246,218
Costs of goods sold 118,067 108,061 (36,818) 189,310 171,611 101,895 (53,454) 220,052
------------------------------------------------------------------------------------------------
Gross profit 7,131 18,287 - 25,418 10,874 15,292 - 26,166
------------------------------------------------------------------------------------------------
Expenses:
Selling, general and
administrative expenses 4,279 19,644 - 23,923 3,757 13,959 - 17,716
Depreciation and amortization
expenses 2,060 938 - 2,998 1,923 810 - 2,733
-------------------------------------------------------------------------------------------------
Total operating expenses 6,339 20,582 - 26,921 5,680 14,769 - 20,449
-------------------------------------------------------------------------------------------------
Operating income (loss) 792 (2,295) - (1,503) 5,194 523 - 5,717
-------------------------------------------------------------------------------------------------
Other income (expense):
Interest income 1,135 239 (1,326) 48 2,466 423 (2,504) 385
Interest expense (5,128) (1,123) 1,326 (4,925) (5,881) (2,135) 2,504 (5,512)
Other, net (443) 126 - (317) (251) 78 - (173)
Equity in net earnings
of affiliate 235 - - 235 - - - -
-------------------------------------------------------------------------------------------------
(4,201) (758) - (4,959) (3,666) (1,634) - (5,300)
-------------------------------------------------------------------------------------------------
Income (loss) before income
tax expense (benefit) (3,409) (3,053) - (6,462) 1,528 (1,111) - 417
Income tax expense (benefit) (1,412) (1,198) - (2,610) 604 (429) - 175
-------------------------------------------------------------------------------------------------
Net income (loss) before
extraordinary item (1,997) (1,855) - (3,852) 924 (682) - 242
Extraordinary item - - - - 1,888 - - 1,888
-------------------------------------------------------------------------------------------------
Net income (loss) $ (1,997) $ (1,855) $ - $ (3,852) $ 2,812 $ (682) $ - $ 2,130
=================================================================================================
10
UNITED REFINING COMPANY
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
===================================================================================================================================
Condensed Consolidating Statements of Operations
(in thousands)
Six Months Ended February 28, 2002 Six Months Ended February 28, 2001
-------------------------------------------------- ---------------------------------------------
Issuer Guarantors Eliminations Consolidated Issuer Guarantors Elimination Consolidated
-------------------------------------------------- ---------------------------------------------
Net sales $283,354 $241,493 $(81,615) $443,232 $409,009 $258,217 $(124,825) $ 542,401
Costs of goods sold 287,758 206,551 (81,615) 412,694 382,257 228,156 (124,825) 485,588
-------------------------------------------------- ---------------------------------------------
Gross profit (4,404) 34,942 - 30,538 26,752 30,061 - 56,813
-------------------------------------------------- ---------------------------------------------
Expenses:
Selling, general and
administrative expenses 8,609 33,703 - 42,312 8,273 28,338 - 36,611
Depreciation and
amortization expenses 4,120 1,838 - 5,958 3,844 1,621 - 5,465
-------------------------------------------------- ---------------------------------------------
Total operating expenses 12,729 35,541 - 48,270 12,117 29,959 - 42,076
-------------------------------------------------- ---------------------------------------------
Operating income (loss) (17,133) (599) - (17,732) 14,635 102 - 14,737
-------------------------------------------------- ---------------------------------------------
Other income (expense):
Interest income 2,653 521 (2,886) 288 5,408 880 (5,372) 916
Interest expense (10,252) (2,438) 2,886 (9,804) (11,733) (4,591) 5,372 (10,952)
Other, net (967) 173 - (794) (632) 112 - (520)
Costs associated
with acquisition - - - - (1,300) - - (1,300)
Equity in net earnings
of affiliate 590 - - 590 - - - -
-------------------------------------------------- ---------------------------------------------
(7,976) (1,744) - (9,720) (8,257) (3,599) - (11,856)
-------------------------------------------------- ---------------------------------------------
Income (loss) before income
tax expense (benefit) (25,109) (2,343) - (27,452) 6,378 (3,497) - 2,881
Income tax expense (benefit) (10,057) (923) - (10,980) 2,583 (1,373) - 1,210
-------------------------------------------------- ---------------------------------------------
Net income (loss) before
extraordinary item (15,052) (1,420) - (16,472) 3,795 (2,124) - 1,671
Extraordinary item - - - - 1,888 - - 1,888
-------------------------------------------------- ---------------------------------------------
Net income (loss) $(15,052) $ (1,420) $ - $(16,472) $ 5,683 $(2,124) $ - $ 3,559
================================================== =============================================
11
UNITED REFINING COMPANY
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
===================================================================================================================================
Condensed Consolidating Statement of Cash Flows
(in thousands)
Six Months Ended February 28, 2002 Six Months Ended February 28, 2001
-------------------------------------------------- ---------------------------------------------
Issuer Guarantors Eliminations Consolidated Issuer Guarantors Eliminations Consolidated
-------------------------------------------------- ---------------------------------------------
Net cash provided by (used in)
operating activities $(23,940) $ 567 $ - $(23,373) $20,528 $(21,542) $ - $(1,014)
-------------------------------------------------- ---------------------------------------------
Cash flows from investing
activities:
Purchase of business,
net of cash acquired (17,281) 381 - (16,900) - - - -
Purchase of investment
securities - - - - (3,714) - - (3,714)
Sale of investment securities - - - - 3,497 - - 3,497
Additions to property, plant
and equipment (2,609) (1,890) - (4,499) (3,839) (1,773) - (5,612)
Proceeds from asset
dispositions - 2 - 2 - 23,531 - 23,531
-------------------------------------------------- ---------------------------------------------
Net cash provided by
(used in) investing
activities (19,890) (1,507) - (21,397) (4,056) 21,758 - 17,702
-------------------------------------------------- ---------------------------------------------
Cash flows from financing
activities:
Net borrowings on revolving
credit facility 20,000 - - 20,000 - - - -
Dividends (2,130) - - (2,130) - - - -
Deferred financing costs (42) - - (42) - - - -
Principal reductions of
long-term debt - (63) - (63) (6,500) (63) - (6,563)
-------------------------------------------------- ---------------------------------------------
Net cash provided by
(used in) financing
activities 17,828 (63) - 17,765 (6,500) (63) - (6,563)
-------------------------------------------------- ---------------------------------------------
Net increase (decrease) in cash
and cash equivalents (26,002) (1,003) - (27,005) 9,972 153 - 10,125
Cash and cash equivalents,
beginning of period 29,197 6,027 - 35,224 4,107 3,323 - 7,430
-------------------------------------------------- ---------------------------------------------
Cash and cash equivalents,
end of period $ 3,195 $ 5,024 $ - $ 8,219 $14,079 $ 3,476 $ - $ 17,555
================================================== =============================================
12
UNITED REFINING COMPANY
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
6. SEGMENTS OF BUSINESS
The Company is a petroleum refiner and marketer in its primary market
area of Western New York and Northwestern Pennsylvania. Operations are organized
into two business segments: wholesale and retail.
The wholesale segment is responsible for the acquisition of crude oil,
petroleum refining, and the marketing of petroleum products to wholesale and
industrial customers. The retail segment sells petroleum products and
convenience and grocery items through company owned gasoline stations and
convenience stores under the Kwik Fill(R), Red Apple Food Mart(R) and Country
Fair(R) brand names.
Intersegment revenues are calculated using estimated market prices and
are eliminated upon consolidation. Summarized financial information regarding
the Company's reportable segments is presented in the following tables (in
thousands):
THREE MONTHS ENDED SIX MONTHS ENDED
FEBRUARY 28, FEBRUARY 28,
(UNAUDITED) (UNAUDITED)
-------------------------------------------------------------------------
2002 2001 2002 2001
- ----------------------------------------------------------------------------------------------------------------
Net Sales
Retail $ 125,171 $ 116,048 $ 239,208 $ 255,908
Wholesale 89,557 130,170 204,024 286,493
-------------------------------------------------------------------------
$ 214,728 $ 246,218 $ 443,232 $ 542,401
=========================================================================
Intersegment Sales
Wholesale $ 35,641 $ 52,315 $ 79,330 $ 122,516
=========================================================================
Operating Income (Loss)
Retail $ (2,603) $ 309 $ (687) $ (570)
Wholesale 1,100 5,408 (17,045) 15,307
-------------------------------------------------------------------------
$ (1,503) $ 5,717 $ (17,732) $ 14,737
=========================================================================
Depreciation and Amortization
Retail $ 888 $ 765 $ 1,738 $ 1,530
Wholesale 2,110 1,968 4,220 3,935
-------------------------------------------------------------------------
$ 2,998 $ 2,733 $ 5,958 $ 5,465
=========================================================================
13
UNITED REFINING COMPANY
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
==============================================================================
FEBRUARY 28, 2002
(UNAUDITED) AUGUST 31, 2001
- ------------------------------------------------------------------------------
Total Assets
Retail $ 119,648 $ 103,161
Wholesale 237,395 252,396
----------------------------------------------
$ 357,043 $ 355,557
==============================================
Capital Expenditures
Retail $ 1,890 $ 3,704
Wholesale 2,609 6,348
----------------------------------------------
$ 4,499 $ 10,052
==============================================
7. ACQUISITION
The Company completed the acquisition of Country Fair, Inc. on December
21, 2001. United Refining Company acquired the operations and working capital
assets of Country Fair, Inc., for approximately $16.9 million. The fixed assets
of Country Fair, Inc., which consist of 69 convenience stores throughout
northwestern Pennsylvania, southwestern New York and eastern Ohio, were acquired
by related entities controlled by John Catsimatidis, the principle shareholder
of United Refining Company. The assets are being leased to United Refining
Company at an annual aggregate rental of approximately $5.2 million over a
period ranging from 10 to 20 years. United Refining Company is not a guarantor
of the underlying mortgages on the properties.
The acquisition was accounted for by the purchase method of accounting
and, accordingly, the results of operations for the period subsequent to the
acquisition are included in the consolidated financial statements. The excess of
purchase price over the net assets acquired, in the amount of approximately $1.3
million has been recorded as goodwill. The pro forma effect assuming the
acquisition of Country Fair at the beginning of fiscal 2002 and 2001 is not
material.
14
UNITED REFINING COMPANY
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(UNAUDITED)
- -------------------------------------------------------------------------------
Recent Developments
Following the events of September 11, 2001, the NYMEX 3/2/1 crack
spread suffered a significant decline that continued throughout the second
fiscal quarter ended February 28, 2002. The 3/2/1 crack spread has increased
from about $3.50 per barrel to approximately $6 per barrel indicating the
beginning of a recovery in refining margins has started. The current NYMEX
crude pricing is in the $24 per barrel range and most analysts expect NYMEX
crude oil prices to level out around $26 per barrel for the last half of 2002.
The Company's results continued to be negatively influenced by the
weaker discounts on heavy sour crude oils that comprise a significant part of
the refinery crude supply. For the recent quarter compared to the prior year
quarter, the Company realized a 40.0% decrease in the light/heavy crude price
differential.
The Company completed the acquisition of Country Fair, Inc. on December
21, 2001. United Refining Company acquired the operations and working capital
assets of Country Fair, Inc., for approximately $16.9 million. The fixed assets
of Country Fair, Inc., which consist of 69 convenience stores throughout
northwestern Pennsylvania, southwestern New York and eastern Ohio, were acquired
by related entities controlled by John Catsimatidis, the principle shareholder
of United Refining Company. The assets are being leased to United Refining
Company at an annual aggregate rental of approximately $5.2 million over a
period ranging from 10 to 20 years. United Refining Company is not a guarantor
of the underlying mortgages on the properties.
Results of Operations
Comparison of Fiscal Quarters Ended February 28, 2002 and February 28, 2001
Net Sales. Net sales decreased $31.5 million or 12.8% from $246.2
million for the fiscal quarter ended February 28, 2001 to $214.7 million for the
fiscal quarter ended February 28, 2002. Retail sales increased $9.2 million, or
7.9% from $116.0 million to $125.2 million, while wholesale sales decreased
$40.7 million or 31.2% from $130.2 million to $89.5 million. The retail sales
increase was due to a retail sales volume increase of 13.1 million gallons or
19.0% (including Country Fair), offset by a significant decline in retail
selling prices of 17% (on a same store basis excluding Country Fair). The
wholesale sales decrease was due to a 28.5% decrease in wholesale prices offset
by a 1.5% increase in wholesale volume.
Retail sales were increased by the acquisition of 69 locations operated
under the Country Fair name. Country Fair retail sales totaled $27.8 million for
the quarter ended February 28, 2002. Country Fair sales volume contributed 12.9
million gallons to the total retail sales volume of 82.0 million gallons for the
quarter ended February 28, 2002.
Costs of Goods Sold. Costs of goods sold decreased $30.7 million or
14.0% from $220.0 million for the fiscal quarter ended February 28, 2001 to
$189.3 million for the fiscal quarter ended February 28, 2002. Retail costs of
goods sold increased $6.2 million or 6.1% from $101.1 million to $107.3 million,
while wholesale costs of goods sold decreased $36.9 million or 31.0% from $118.9
million to $82.0 million. The significant decrease in consolidated costs of
goods sold was consistent with the decrease of approximately 36.0% in worldwide
crude oil prices, as indicated by NYMEX crude oil contract prices for
15
UNITED REFINING COMPANY
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(UNAUDITED)
- -------------------------------------------------------------------------------
the quarter ended February 28, 2002 as compared to the prior year quarter. The
Company's average crude oil purchase price decreased 32.2% compared to the prior
year quarter consistent with the previously mentioned 36.0% decline in world
crude oil prices as indicated by NYMEX.
The increase in retail costs of goods sold is largely attributed to the
acquisition of Country Fair. Country Fair's costs of goods sold for the quarter
ended February 28, 2002 was $22.7 million. The decrease in wholesale costs of
goods sold was primarily due to the previously discussed decrease in the
Company's average crude oil purchase price. Costs of goods sold for the quarter
ended February 28, 2002 was positively impacted by an approximate $6.2 million
increase in the value of the Company's working inventories on a market valuation
basis, which decreased costs of goods sold. In the quarter ended February 28,
2001, costs of goods sold was negatively impacted by an approximately $2.9
million decrease in the value of the Company's working inventories on a market
valuation basis, which increased costs of goods sold.
Gross Profit. Gross Profit decreased $.8 million from $26.2 million for
the fiscal quarter ended February 28, 2001 to $25.4 million for the fiscal
quarter ended February 28, 2002. This decrease was primarily due to lower
industry wholesale margins and significantly lower discounts on heavy
high-sulfur crude oil grades processed by the Company, and by lower retail
petroleum margins, as industry retail prices did not keep pace with rapidly
falling wholesale prices. This decrease was also partially offset by the
positive impact on costs of goods sold due to an increase in the value of the
Company's working inventories on a market valuation basis, versus an unfavorable
impact in the prior year quarter.
Operating Expenses. Operating expenses increased $6.5 million or 31.9%
from $20.4 million for the fiscal quarter ended February 28, 2001 to $26.9
million for the fiscal quarter ended February 28, 2002. This increase was
primarily due to the acquisition of 69 retail locations operated under the
Country Fair name. Country Fair's operating expenses for the period ending
February 28, 2002 were $5.5 million. The remaining increases to operating
expenses were due to increased depreciation, increased advertising costs and
increased payroll and payroll costs. Increased depreciation was primarily due to
capital equipment installed as part of the Company's on-going maintenance and
project upgrades.
Operating Income. As a result of the above, operating income decreased
$7.2 million from $5.7 million for the fiscal quarter ended February 28, 2001 to
($1.5) million for the fiscal quarter ended February 28, 2002.
Interest Expense. Net interest expense (interest expense less interest
income) decreased $0.2 million from $5.1 million for the fiscal quarter ended
February 28, 2001 to $4.9 million for the fiscal quarter ended February 28,
2002. The decreased net interest expense was due to a reduction of the Company's
long term Senior Unsecured Notes offset by borrowings on the Company's revolving
credit facility. In March 2001, the Company repurchased a total of $10.2 million
face value of Senior Notes.
Income Taxes. The Company's effective tax rate for the fiscal quarter
ended February 28, 2002 was approximately 40.4% compared to a rate of 42.0% for
the fiscal quarter ended February 28, 2001.
16
UNITED REFINING COMPANY
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(UNAUDITED)
- -------------------------------------------------------------------------------
Comparison of the Six Months Ended February 28, 2002 and February 28, 2001
Net Sales. Net sales decreased $99.2 million or 18.3% from $542.4
million for the six months ended February 28, 2001 to $443.2 million for the six
months ended February 28, 2002. Retail sales decreased $16.7 million, or 6.5%
from $255.9 million to $239.2 million, while wholesale sales decreased $82.5
million or 28.8% from $286.5 million to $204.0 million. The retail sales
decrease was primarily due to a significant decline in the retail selling prices
of 20% (on a same store basis excluding Country Fair), offset by a retail sales
volume increase of 10.5 million gallons or 7.7% (including Country Fair). The
wholesale sales decrease was due to a 35.2% decrease in wholesale prices offset
by a 2.1% increase in wholesale volume.
Retail sales were increased by the acquisition of 69 locations operated
under the Country Fair name. Country Fair retail sales totaled $27.8 million for
the six months ended February 28, 2002. Country Fair sales volume contributed
12.9 million gallons to the total retail sales volume of 82.0 million gallons
for the six months ended February 28, 2002.
Costs of Goods Sold. Costs of goods sold decreased $72.9 million or
15.0% from $485.6 million for the six months ended February 28, 2001 to $412.7
million for the six months ended February 28, 2002. Retail costs of goods sold
decreased $22.2 million or 9.8% from $226.8 million to $204.6 million, while
wholesale costs of goods sold decreased $50.7 million or 19.6% from $258.8
million to $208.1 million. The significant decrease in consolidated costs of
goods sold was consistent with the decrease of approximately 29.4% in worldwide
crude oil prices, as indicated by NYMEX crude oil contract prices for the six
months ended February 28, 2002 as compared to the prior year period. The
Company's average crude oil purchase price decreased 26.9% compared to the prior
year period consistent with the previously mentioned 29.4% decline in world
crude oil prices as indicated by NYMEX.
The increase in retail costs of goods sold is largely attributed to the
acquisition of Country Fair. Country Fair's costs of goods sold for the quarter
ended February 28, 2002 was $22.7 million. The decrease in wholesale costs of
goods sold was primarily due to the previously discussed decrease in the
Company's average crude oil purchase price. Costs of goods sold for the six
months ended February 28, 2002 was negatively impacted by an approximate $3.2
million decrease in the value of the Company's working inventories on a market
valuation basis, which increased costs of goods sold. For the six months ended
February 28, 2001, costs of goods sold was negatively impacted by an
approximately $4.4 million decrease in the value of the Company's working
inventories on a market valuation basis, which increased costs of goods sold.
Gross Profit. Gross Profit decreased $26.3 million from $56.8 million
for the six months ended February 28, 2001 to $30.5 million for the six months
ended February 28, 2002. This decrease was primarily due to lower industry
wholesale margins and lower discounts on heavy high-sulfur crude oil grades
processed by the Company, and by lower retail petroleum margins, as industry
retail prices did not keep pace with rapidly falling wholesale prices. Also
contributing to the decrease was the negative impact on costs of goods sold due
to a decrease in the value of the Company's working inventories on a market
valuation basis.
Operating Expenses. Operating expenses increased $6.2 million or 14.7%
from $42.1 million for the six months ended February 28, 2001 to $48.3 million
for the six months ended February 28, 2002. This increase was primarily due to
the acquisition of 69 retail locations operated under the Country Fair
17
UNITED REFINING COMPANY
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(UNAUDITED)
- -------------------------------------------------------------------------------
name. Country Fair's operating expenses for the period ending February 28, 2002
were $5.5 million. The remaining increases to operating expenses were due to
increased depreciation, increased advertising costs and increased payroll and
payroll costs. Increased depreciation was primarily due to capital equipment
installed as part of the Company's on-going maintenance and project upgrades.
Operating Income. As a result of the above, operating income decreased
$32.4 million from $14.7 million for the six months ended February 28, 2001 to
$(17.7) million for the six months ended February 28, 2002.
Interest Expense. Net interest expense (interest expense less interest
income) decreased $.5 million from $10.0 million for the six months ended
February 28, 2001 to $9.5 million for the six months ended February 28, 2002.
The decreased net interest expense was due to a reduction of the Company's long
term Senior Unsecured Notes offset by borrowings on the Company's revolving
credit facility. In March 2001, the Company repurchased a total of $10.2 million
face value of Senior Notes.
Income Taxes. The Company's effective tax rate for the six months ended
February 28, 2002 was approximately 40.0% compared to a rate of 42.0% for the
six months ended February 28, 2001.
Liquidity and Capital Resources
Working capital (current assets minus current liabilities) at February
28, 2002 was $55.0 million and at August 31, 2001 was $93.2 million. The
Company's current ratio (current assets divided by current liabilities) was
1.7:1 at February 28, 2002 and 2.6:1 at August 31, 2001.
Net cash used in operating activities totaled $23.4 million for the six
months ended February 28, 2002 and $1.0 million for the six months ended
February 28, 2001.
Net cash used in investing activities for purchases of property, plant
and equipment totaled $4.5 million and $5.6 million for the six months ended
February 28, 2002 and 2001 respectively. Net cash used in investing activities
during the six months ended February 28, 2002 included $16.9 million for the
acquisition of all outstanding shares of stock of Country Fair, Inc. Net cash
provided by investing activities was $23.5 million from the sale of assets for
the six months ended February 28, 2001. Also, net cash used in investing
activities for the purchase of stock of potential acquisition candidate totaled
$3.7 million for the six months ended February 28, 2001.
The Company reviews its capital expenditures on an ongoing basis. The
Company currently has budgeted approximately $6.0 million for capital
expenditures in fiscal 2002. Maintenance and non-discretionary capital
expenditures have averaged approximately $4 million annually over the last three
years for the refining and marketing operations. Management does not foresee any
increase in maintenance and non-discretionary capital expenditures during fiscal
2002.
Future liquidity, both short and long-term, will continue to be
primarily dependent on realizing a refinery margin sufficient to cover fixed and
variable expenses, including planned capital expenditures. The Company expects
to be able to meet its working capital, capital expenditure and debt service
requirements out of cash flow from operations, cash on hand and borrowings under
the Company's secured revolving credit facility (the "Facility") with PNC Bank,
N.A. as Agent Bank. The Facility
18
UNITED REFINING COMPANY
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(UNAUDITED)
- -------------------------------------------------------------------------------
commitment is currently $50,000,000, and expires on June 9, 2002. The Facility
is secured by certain qualifying cash accounts, accounts receivable, and
inventory. The interest rate on borrowings varies with the Company's earnings
and is based on the higher of the bank's prime rate or Federal funds rate for
base rate borrowings and the LIBOR rate for Euro-Rate borrowings, which was
4.13% as of February 28, 2002.
Although the Company is not aware of any pending circumstances which
would change its expectation, changes in the tax laws, the imposition of and
changes in federal and state clean air and clean fuel requirements and other
changes in environmental laws and regulations may also increase future capital
expenditure levels. Future capital expenditures are also subject to business
conditions affecting the industry. The Company continues to investigate
strategic acquisitions and capital improvements to its existing facilities.
Federal, state and local laws and regulations relating to the
environment affect nearly all the operations of the Company. As is the case with
all the companies engaged in similar industries, the Company faces significant
exposure from actual or potential claims and lawsuits involving environmental
matters. Future expenditures related to environmental matters cannot be
reasonably quantified in many circumstances due to the uncertainties as to
required remediation methods and related clean-up cost estimates. The Company
cannot predict what additional environmental legislation or regulations will be
enacted or become effective in the future or how existing or future laws or
regulations will be administered or interpreted with respect to products or
activities to which they have not been previously applied.
Seasonal Factors
Seasonal factors affecting the Company's business may cause variation
in the prices and margins of some of the Company's products. For example, demand
for gasoline tends to be highest in spring and summer months, while demand for
home heating oil and kerosene tends to be highest in winter months. As a result,
the margin on gasoline prices versus crude oil costs generally tends to increase
in the spring and summer, while margins on home heating oil and kerosene tend to
increase in winter.
Inflation
The effect of inflation on the Company has not been significant during
the last five fiscal years.
19
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8K
(a) No reports on Forms 8-K have been filed
for the quarter for which this report is
being filed.
20
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
UNITED REFINING COMPANY
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
21
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
KIANTONE PIPELINE CORPORATION
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
22
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
UNITED REFINING COMPANY OF PENNSYLVANIA
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
23
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
KIANTONE PIPELINE COMPANY
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
24
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
UNITED JET CENTER, INC.
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
25
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
KWIK FILL CORPORATION
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
26
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
INDEPENDENT GASOLINE AND OIL COMPANY OF
ROCHESTER, INC.
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
27
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
BELL OIL CORP.
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
28
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
PPC, INC.
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
29
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
SUPER TEST PETROLEUM, INC.
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
30
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
KWIK-FIL, INC.
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
31
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 15, 2002
VULCAN ASPHALT REFINING CORPORATION
---------------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------------
James E. Murphy
Chief Financial Officer
32