Murphy USA Inc. (NYSE: MUSA), a leading marketer of retail motor
fuel products and convenience merchandise, today announced
financial results for the three and six months ended June 30,
2024.
Key Highlights:
- Net income was $144.8 million, or $6.92 per diluted share, in
Q2 2024 compared to net income of $132.8 million, or $6.02 per
diluted share, in Q2 2023.
- Total fuel contribution for Q2 2024 was 31.7 cpg, compared to
29.5 cpg in Q2 2023.
- Total retail gallons decreased 0.6% in Q2 2024 compared to Q2
2023, while volumes on a same store sales ("SSS") basis declined
1.3% in Q2 2024 compared to Q2 2023.
- Merchandise contribution dollars for Q2 2024 increased 4.7% to
$216.5 million on average unit margins of 20.0%, compared to Q2
2023 contribution dollars of $206.8 million on unit margins of
19.7%.
- During Q2 2024, the Company repurchased approximately 238.4
thousand common shares for $107.1 million at an average price of
$449.30 per share.
- The Company paid a quarterly cash dividend of $0.44 per share,
or $1.76 per share on an annualized basis, on June 3, 2024, a 4.8%
increase from March of 2024, for a total cash payment of $9.1
million.
“Murphy USA’s advantaged business model delivered strong second
quarter results led by continued outperformance in the core
non-discretionary fuel and tobacco categories,” said President and
CEO Andrew Clyde. “Record second quarter retail fuel contribution
dollars helped make up for a slow start in the first quarter and
clearly demonstrated that structural margin dynamics remain intact,
despite limited volatility versus prior years. Nicotine continues
to gain share, while center-of-store results remain mixed,
particularly in the Northeast where inflation and other drivers are
impacting traffic at QuickChek, more than offsetting the benefits
of our initiatives to drive further value in the business. Given
these trends remain below our high expectations into the third
quarter, we are revising our full-year merchandise margin guidance.
Despite these headwinds, customer spend on non-discretionary
categories remains robust in our core footprint, creating
sustainable value as our NTI activity accelerates in the second
half of 2024 and into 2025.”
Consolidated Results
Three Months Ended June
30,
Six Months Ended June
30,
Key Operating Metrics
2024
2023
2024
2023
Net income (loss) ($ Millions)
$
144.8
$
132.8
$
210.8
$
239.1
Earnings per share (diluted)
$
6.92
$
6.02
$
10.02
$
10.82
Adjusted EBITDA ($ Millions)
$
278.6
$
257.1
$
442.9
$
477.3
Net income and Adjusted EBITDA for Q2 2024 were higher versus
the prior-year quarter, due primarily to higher total fuel
contribution and higher overall merchandise contribution, which
were partially offset by higher store operating expenses.
Fuel
Three Months Ended June
30,
Six Months Ended June
30,
Key Operating Metrics
2024
2023
2024
2023
Total retail fuel contribution ($
Millions)
$
365.2
$
334.7
$
615.2
$
599.4
Total PS&W contribution ($
Millions)
(3.8
)
(53.0
)
2.9
(103.1
)
RINs (included in Other operating revenues
on Consolidated Income Statement) ($ Millions)
28.9
84.1
58.3
199.4
Total fuel contribution ($ Millions)
$
390.3
$
365.8
$
676.4
$
695.7
Retail fuel volume - chain (Million
gal)
1,231.6
1,238.8
2,384.7
2,380.5
Retail fuel volume - per store (K gal
APSM)1
247.2
249.3
238.6
239.8
Retail fuel volume - per store (K gal
SSS)2
244.3
245.2
235.7
236.2
Total fuel contribution (cpg)
31.7
29.5
28.4
29.2
Retail fuel margin (cpg)
29.7
27.0
25.8
25.2
PS&W including RINs contribution
(cpg)
2.0
2.5
2.6
4.0
1Average Per Store Month ("APSM") metric
includes all stores open through the date of calculation
22023 amounts not revised for 2024
raze-and-rebuild activity
Total fuel contribution dollars of $390.3 million increased
$24.5 million, or 6.7%, in Q2 2024 compared to Q2 2023 due to
higher margins partially offset by lower retail volumes sold during
the period. Retail fuel contribution dollars increased $30.5
million, or 9.1%, to $365.2 million compared to Q2 2023 due to
higher retail fuel margins partially offset by lower volumes sold.
For Q2 2024, retail fuel margins were 29.7 cpg, a 10.0% increase
versus the prior-year quarter, and overall retail volumes were 0.6%
lower in Q2 2024 compared to the prior-year quarter. PS&W
contribution including RINs decreased $6.0 million when compared to
Q2 2023, primarily due to a regional supply imbalance that offset
improved spot-to-rack spreads seen in other regions.
Merchandise
Three Months Ended June
30,
Six Months Ended June
30,
Key Operating Metrics
2024
2023
2024
2023
Total merchandise contribution ($
Millions)
$
216.5
$
206.8
$
408.1
$
393.9
Total merchandise sales ($ Millions)
$
1,080.4
$
1,049.0
$
2,081.1
$
2,015.2
Total merchandise sales ($K SSS)1,2
$
211.3
$
204.7
$
203.2
$
197.0
Merchandise unit margin (%)
20.0
%
19.7
%
19.6
%
19.6
%
Tobacco contribution ($K SSS)1,2
$
20.0
$
18.2
$
19.2
$
17.8
Non-tobacco contribution ($K SSS)1,2
$
22.8
$
22.5
$
21.1
$
21.1
Total merchandise contribution ($K
SSS)1,2
$
42.8
$
40.7
$
40.3
$
38.9
12023 amounts not revised for 2024
raze-and-rebuild activity
2Includes store-level discounts for Murphy
Drive Reward ("MDR") redemptions and excludes change in value of
unredeemed MDR points
Total merchandise contribution increased $9.7 million, or 4.7%,
to $216.5 million in Q2 2024 compared to the prior-year quarter,
due primarily to higher merchandise sales. Total tobacco
contribution dollars in Q2 2024 increased 10.3% and non-tobacco
contribution dollars increased 0.3% compared to Q2 2023. Total
merchandise contribution increased 5.0% on a SSS basis in the
current quarter compared to the prior-year quarter.
Other Areas
Three Months Ended June
30,
Six Months Ended June
30,
Key Operating Metrics
2024
2023
2024
2023
Total store and other operating expenses
($ Millions)
$
269.9
$
256.7
$
522.0
$
495.0
Store OPEX excluding payment fees and
rent
($K APSM)
$
35.5
$
33.5
$
34.4
$
32.3
Total SG&A cost ($ Millions)
$
59.1
$
59.4
$
121.2
$
118.4
Total store and other operating expenses were $13.2 million
higher in Q2 2024 versus Q2 2023, mainly due to employee related
expenses and store maintenance costs combined with new store
growth. Store OPEX excluding payment fees and rent on an APSM basis
were 6.0% higher versus Q2 2023, primarily attributable to
increased employee related expenses and maintenance costs.
Store Openings
The tables below reflect changes in our store portfolio in Q2
2024:
Net Change in Q2 2024
Murphy USA /
Express
QuickChek
Total
New-to-industry ("NTI")
3
—
3
Closed
—
—
—
Net change
3
—
3
Raze-and-rebuilds reopened in Q2*
9
—
9
Under Construction at End of Q2
NTI
15
3
18
Raze-and-rebuilds*
26
—
26
Total under construction at end of Q2
41
3
44
Net Change YTD in 2024
NTI
5
1
6
Closed
—
(3
)
(3
)
Net change
5
(2
)
3
Raze-and-rebuilds reopened YTD*
11
—
11
Store count at June 30, 2024*
1,582
154
1,736
*Store counts include raze-and-rebuild
stores
Financial Resources
As of June 30,
Key Financial Metrics
2024
2023
Cash and cash equivalents ($ Millions)
$
79.8
$
92.9
Marketable securities, current ($
Millions)
$
4.5
$
13.0
Marketable securities, non-current ($
Millions)
$
3.0
$
7.4
Long-term debt, including finance lease
obligations ($ Millions)
$
1,781.4
$
1,787.3
Cash balances as of June 30, 2024 totaled $79.8 million, and the
Company also had total marketable securities of $7.5 million.
Long-term debt consisted of approximately $298.6 million in
carrying value of 5.625% senior notes due in 2027, $496.1 million
in carrying value of 4.75% senior notes due in 2029, $494.9 million
in carrying value of 3.75% senior notes due in 2031, and $379.2
million of term debt, combined with approximately $112.6 million in
long-term finance leases. The $350 million revolving cash flow
facility was undrawn as of June 30, 2024.
Three Months Ended June
30,
Six Months Ended June
30,
Key Financial Metric
2024
2023
2024
2023
Average shares outstanding (diluted) (in
thousands)
20,922
22,051
21,043
22,092
At June 30, 2024, the Company had common shares outstanding of
20,492,205. Common shares repurchased during the quarter were
approximately 238.4 thousand shares for $107.1 million. Common
shares purchased during the six months ended June 30, 2024, were
approximately 454.5 thousand shares for a total of $194.0 million.
As of June 30, 2024, approximately $1.2 billion remained available
under the existing $1.5 billion 2023 authorization.
The effective income tax rate for Q2 2024 was 25.1% compared to
24.4% in Q2 2023.
The Company paid a quarterly cash dividend on June 3, 2024 of
$0.44 per share, or $1.76 per share on an annualized basis, a 4.8%
increase from the previous quarter, for a total cash payment of
$9.1 million. The total amount paid in dividends year-to-date is
$17.9 million, or $0.86 per share.
2024 Guidance Update
Concurrent with the earnings release, the Company is also
updating our full-year merchandise contribution results to a range
of $830 million to $840 million, down from the original guided
range of $860 million to $880 million. While nicotine results have
been stronger than planned in 2024, we have experienced weaker than
expected consumer demand, particularly in the Northeast, that has
impacted both core food and beverage traffic drivers and related
discretionary center-of-store sales. We expect the lower demand to
persist through the remainder of 2024 and mostly offset the
benefits from some of our back-half weighted initiatives
In addition, we are revising our guidance for raze-and-rebuild
sites to more than 40, up from the originally guided range of 35 to
40, due primarily to the successful efforts of our team to pull
forward some future projects into the current year.
All other previously issued guidance metrics remain unchanged.
More details on the guidance updates will be shared in the earnings
conference call noted below.
Earnings Call Information
The Company will host a conference call on August 1, 2024 at
10:00 a.m. Central Time to discuss second quarter 2024 results. The
conference call number is 1 (888) 330-2384 and the conference ID
number is 6680883. The earnings and investor related materials,
including reconciliations of any non-GAAP financial measures to
GAAP financial measures and any other applicable disclosures, will
be available on that same day on the investor section of the Murphy
USA website (http://ir.corporate.murphyusa.com). Approximately one
hour after the conclusion of the conference, the webcast will be
available for replay. Shortly thereafter, a transcript will be
available.
Source: Murphy USA Inc. (NYSE: MUSA)
Forward-Looking Statements
Certain statements in this news release contains certain
statements or may suggest “forward-looking” information (as defined
in the Private Securities Litigation Reform Act of 1995) that
involve risk and uncertainties, including, but not limited to our
M&A activity, anticipated store openings and associated capital
expenditures, fuel margins, merchandise margins, sales of RINs,
trends in our operations, dividends, and share repurchases. Such
statements are based upon the current beliefs and expectations of
the Company’s management and are subject to significant risks and
uncertainties. Actual future results may differ materially from
historical results or current expectations depending upon factors
including, but not limited to: our ability to successfully expand
our food and beverage offerings; our ability to continue to
maintain a good business relationship with Walmart; successful
execution of our growth strategy, including our ability to realize
the anticipated benefits from such growth initiatives, and the
timely completion of construction associated with our newly planned
stores which may be impacted by the financial health of third
parties; our ability to effectively manage our inventory, manage
disruptions in our supply chain and our ability to control costs;
geopolitical events, such as Russia's invasion of Ukraine and the
conflicts in the Middle East, that impact the supply and demand and
price of crude oil; the impact of severe weather events, such as
hurricanes, floods and earthquakes; the impact of a global health
pandemic and any governmental response thereto; the impact of any
systems failures, cybersecurity and/or security breaches of the
company or its vendor partners, including any security breach that
results in theft, transfer or unauthorized disclosure of customer,
employee or company information or our compliance with information
security and privacy laws and regulations in the event of such an
incident; successful execution of our information technology
strategy; reduced demand for our products due to the implementation
of more stringent fuel economy and greenhouse gas reduction
requirements, or increasingly widespread adoption of electric
vehicle technology; future tobacco or e-cigarette legislation and
any other efforts that make purchasing tobacco products more costly
or difficult could hurt our revenues and impact gross margins;
efficient and proper allocation of our capital resources, including
the timing, declaration, amount and payment of any future dividends
or levels of the Company's share repurchases, or management of
operating cash; the market price of the Company's stock prevailing
from time to time, the nature of other investment opportunities
presented to the Company from time to time, the Company's cash
flows from operations, and general economic conditions; compliance
with debt covenants; availability and cost of credit; and changes
in interest rates. Our SEC reports, including our most recent
annual Report on Form 10-K and quarterly report on Form 10-Q,
contain other information on these and other factors that could
affect our financial results and cause actual results to differ
materially from any forward-looking information we may provide. The
Company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events, new
information or future circumstances.
Murphy USA Inc.
Consolidated Statements of
Income
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(Millions of dollars, except share and per
share amounts)
2024
2023
2024
2023
Operating Revenues
Petroleum product sales1
$
4,340.5
$
4,450.6
$
8,152.2
$
8,444.8
Merchandise sales
1,080.4
1,049.0
2,081.1
2,015.2
Other operating revenues
30.8
85.8
62.1
202.6
Total operating revenues
5,451.7
5,585.4
10,295.4
10,662.6
Operating Expenses
Petroleum product cost of goods sold1
3,980.2
4,170.0
7,536.3
7,950.6
Merchandise cost of goods sold
863.9
842.2
1,673.0
1,621.3
Store and other operating expenses
269.9
256.7
522.0
495.0
Depreciation and amortization
59.3
57.8
118.0
114.2
Selling, general and administrative
59.1
59.4
121.2
118.4
Accretion of asset retirement
obligations
0.8
0.7
1.6
1.5
Total operating expenses
5,233.2
5,386.8
9,972.1
10,301.0
Gain (loss) on sale of assets
(1.4
)
0.1
(1.0
)
(0.1
)
Income (loss) from operations
217.1
198.7
322.3
361.5
Other income (expense)
Investment income
0.9
1.8
2.1
2.6
Interest expense
(24.9
)
(25.0
)
(49.8
)
(49.9
)
Other nonoperating income (expense)
0.1
0.2
0.5
0.5
Total other income (expense)
(23.9
)
(23.0
)
(47.2
)
(46.8
)
Income before income taxes
193.2
175.7
275.1
314.7
Income tax expense (benefit)
48.4
42.9
64.3
75.6
Net Income
$
144.8
$
132.8
$
210.8
$
239.1
Basic and Diluted Earnings Per Common
Share
Basic
$
7.02
$
6.12
$
10.17
$
11.01
Diluted
$
6.92
$
6.02
$
10.02
$
10.82
Weighted-average Common shares outstanding
(in thousands):
Basic
20,643
21,686
20,728
21,712
Diluted
20,922
22,051
21,043
22,092
Supplemental information:
1Includes excise taxes of:
$
597.5
$
594.2
$
1,156.3
$
1,139.0
Murphy USA Inc.
Segment Operating
Results
(Unaudited)
(Millions of dollars, except revenue per
same store sales (in thousands) and store counts)
Three Months Ended June
30,
Six Months Ended June
30,
Marketing Segment
2024
2023
2024
2023
Operating Revenues
Petroleum product sales
$
4,340.5
$
4,450.6
$
8,152.2
$
8,444.8
Merchandise sales
1,080.4
1,049.0
2,081.1
2,015.2
Other operating revenues
30.8
85.8
62.0
202.5
Total operating revenues
5,451.7
5,585.4
10,295.3
10,662.5
Operating expenses
Petroleum products cost of goods sold
3,980.2
4,170.0
7,536.3
7,950.6
Merchandise cost of goods sold
863.9
842.2
1,673.0
1,621.3
Store and other operating expenses
269.8
256.8
521.9
495.0
Depreciation and amortization
55.7
53.2
110.6
105.6
Selling, general and administrative
59.1
59.4
121.2
118.4
Accretion of asset retirement
obligations
0.8
0.7
1.6
1.5
Total operating expenses
5,229.5
5,382.3
9,964.6
10,292.4
Gain (loss) on sale of assets
(1.0
)
0.1
(1.1
)
(0.1
)
Income (loss) from operations
221.2
203.2
329.6
370.0
Other income (expense)
Interest expense
(2.1
)
(2.2
)
(4.2
)
(4.5
)
Total other income (expense)
(2.1
)
(2.2
)
(4.2
)
(4.5
)
Income (loss) before income taxes
219.1
201.0
325.4
365.5
Income tax expense (benefit)
55.3
49.3
76.1
87.9
Net income (loss) from operations
$
163.8
$
151.7
$
249.3
$
277.6
Total tobacco sales revenue same store
sales1,2
$
135.0
$
128.5
$
130.5
$
124.0
Total non-tobacco sales revenue same store
sales1,2
76.3
76.2
72.7
73.0
Total merchandise sales revenue same store
sales1,2
$
211.3
$
204.7
$
203.2
$
197.0
12023 amounts not revised for 2024
raze-and-rebuild activity
2Includes store-level discounts for Murphy
Drive Reward ("MDR") redemptions and excludes change in value of
unredeemed MDR points
Store count at end of period
1,736
1,725
1,736
1,725
Total store months during the period
5,133
5,149
10,297
10,290
Same store sales information compared to APSM metrics
Variance from prior year
period
Three months ended
Six months ended
June 30, 2024
June 30, 2024
SSS1
APSM2
SSS1
APSM2
Retail fuel volume per month
(1.3
)%
(0.8
)%
(1.1
%)
(0.5
%)
Merchandise sales
3.1
%
3.3
%
3.2
%
3.2
%
Tobacco sales
5.9
%
5.5
%
6.3
%
5.5
%
Non tobacco sales
(1.5
)%
(0.2
)%
(1.9
%)
(0.5
%)
Merchandise margin
5.0
%
5.0
%
3.7
%
3.5
%
Tobacco margin
12.1
%
10.7
%
9.2
%
7.4
%
Non tobacco margin
(0.5
)%
0.6
%
(0.9
%)
0.4
%
1Includes store-level discounts for MDR
redemptions and excludes change in value of unredeemed MDR
points
2Includes all MDR activity
Notes
Average Per Store Month (APSM) metric includes all stores open
through the date of the calculation, including stores acquired
during the period.
Same store sales (SSS) metric includes aggregated individual
store results for all stores open throughout both periods
presented. For all periods presented, the store must have been open
for the entire calendar year to be included in the comparison.
Remodeled stores that remained open or were closed for just a very
brief time (less than a month) during the period being compared
remain in the same store sales calculation. If a store is replaced
either at the same location (raze-and-rebuild) or relocated to a
new location, it will be excluded from the calculation during the
period it is out of service. Newly constructed stores do not enter
the calculation until they are open for each full calendar year for
the periods being compared (open by January 1, 2023 for the stores
being compared in the 2024 versus 2023 comparison). Acquired stores
are not included in the calculation of same store sales for the
first 12 months after the acquisition. When prior period same store
sales volumes or sales are presented, they have not been revised
for current year activity for raze-and-rebuilds and asset
dispositions.
QuickChek uses a weekly retail calendar where each quarter has
13 weeks. The QuickChek results for Q2 2024 covers the period March
30, 2024 to June 28, 2024 and for the 2024 year-to-date period
December 30, 2023 to June 28, 2024. The QuickChek results for Q2
2023 covers the period April 1, 2023 to June 30, 2023 and the 2023
year-to-date period December 31, 2022 to June 30, 2023. The
difference in the timing of the period ends is immaterial to the
overall consolidated results.
Murphy USA Inc.
Consolidated Balance
Sheets
(Millions of dollars, except share
amounts)
June 30, 2024
December 31, 2023
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
79.8
$
117.8
Marketable securities, current
4.5
7.1
Accounts receivable—trade, less allowance
for doubtful accounts of $0.6 and $1.3 at 2024 and 2023,
respectively
386.5
336.7
Inventories, at lower of cost or
market
315.9
341.2
Prepaid expenses and other current
assets
33.4
23.7
Total current assets
820.1
826.5
Marketable securities, non-current
3.0
4.4
Property, plant and equipment, at cost
less accumulated depreciation and amortization of $1,824.9 and
$1,739.2 at 2024 and 2023, respectively
2,655.4
2,571.8
Operating lease right of use assets,
net
463.5
452.1
Intangible assets, net of amortization
139.6
139.8
Goodwill
328.0
328.0
Other assets
20.3
17.5
Total assets
$
4,429.9
$
4,340.1
Liabilities and Stockholders'
Equity
Current liabilities
Current maturities of long-term debt
$
15.6
$
15.0
Trade accounts payable and accrued
liabilities
924.0
834.7
Income taxes payable
31.1
23.1
Total current liabilities
970.7
872.8
Long-term debt, including capitalized
lease obligations
1,781.4
1,784.7
Deferred income taxes
323.0
329.5
Asset retirement obligations
46.3
46.1
Non-current operating lease
liabilities
464.6
450.3
Deferred credits and other liabilities
32.6
27.8
Total liabilities
3,618.6
3,511.2
Stockholders' Equity
Preferred Stock, par $0.01 (authorized
20,000,000 shares, none outstanding)
—
—
Common Stock, par $0.01 (authorized
200,000,000 shares, 46,767,164 shares issued at 2024 and 2023,
respectively)
0.5
0.5
Treasury stock (26,274,959 and 25,929,836
shares held at 2024 and 2023, respectively)
(3,139.4
)
(2,957.8
)
Additional paid in capital (APIC)
479.3
508.1
Retained earnings
3,470.9
3,278.1
Total stockholders' equity
811.3
828.9
Total liabilities and stockholders'
equity
$
4,429.9
$
4,340.1
Murphy USA Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(Millions of dollars)
2024
2023
2024
2023
Operating Activities
Net income
$
144.8
$
132.8
$
210.8
$
239.1
Adjustments to reconcile net income (loss)
to net cash provided by operating activities
Depreciation and amortization
59.3
57.8
118.0
114.2
Deferred and noncurrent income tax charges
(benefits)
(6.0
)
2.8
(6.5
)
9.4
Accretion of asset retirement
obligations
0.8
0.7
1.6
1.5
Amortization of discount on marketable
securities
—
—
(0.1
)
—
(Gains) losses from sale of assets
1.4
(0.1
)
1.0
0.1
Net (increase) decrease in noncash
operating working capital
51.6
(31.2
)
55.8
(61.6
)
Other operating activities - net
8.9
8.4
16.2
18.2
Net cash provided (required) by operating
activities
260.8
171.2
396.8
320.9
Investing Activities
Property additions
(118.0
)
(72.5
)
(194.2
)
(145.2
)
Proceeds from sale of assets
0.6
1.8
1.6
1.8
Investment in marketable securities
—
(8.4
)
—
(8.4
)
Redemptions of marketable securities
3.0
6.0
4.0
10.5
Other investing activities - net
(0.1
)
(0.2
)
(0.8
)
(1.0
)
Net cash provided (required) by investing
activities
(114.5
)
(73.3
)
(189.4
)
(142.3
)
Financing Activities
Purchase of treasury stock
(106.1
)
(94.2
)
(192.5
)
(107.9
)
Dividends paid
(9.1
)
(8.2
)
(17.9
)
(16.3
)
Borrowings of debt
120.0
—
120.0
8.0
Repayments of debt
(123.9
)
(3.9
)
(127.8
)
(15.7
)
Amounts related to share-based
compensation
(4.1
)
(0.8
)
(27.2
)
(14.3
)
Net cash provided (required) by financing
activities
(123.2
)
(107.1
)
(245.4
)
(146.2
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
23.1
(9.2
)
(38.0
)
32.4
Cash, cash equivalents and restricted cash
at beginning of period
56.7
102.1
117.8
60.5
Cash, cash equivalents and restricted cash
at end of period
$
79.8
$
92.9
$
79.8
$
92.9
Supplemental Disclosure Regarding Non-GAAP Financial
Information
The following table reconciles EBITDA and Adjusted EBITDA to Net
Income for the three and six months ended June 30, 2024 and 2023.
EBITDA means net income (loss) plus net interest expense, plus
income tax expense, depreciation and amortization, and Adjusted
EBITDA adds back (i) other non-cash items (e.g., impairment of
properties and accretion of asset retirement obligations) and (ii)
other items that management does not consider to be meaningful in
assessing our operating performance (e.g., (income) from
discontinued operations, net settlement proceeds, (gain) loss on
sale of assets, loss on early debt extinguishment, transaction and
integration costs related to acquisitions, and other non-operating
(income) expense). EBITDA and Adjusted EBITDA are not measures that
are prepared in accordance with U.S. generally accepted accounting
principles (GAAP).
We use Adjusted EBITDA in our operational and financial
decision-making, believing that the measure is useful to eliminate
certain items in order to focus on what we deem to be a more
reliable indicator of ongoing operating performance and our ability
to generate cash flow from operations. Adjusted EBITDA is also used
by many of our investors, research analysts, investment bankers,
and lenders to assess our operating performance. We believe that
the presentation of Adjusted EBITDA provides useful information to
investors because it allows understanding of a key measure that we
evaluate internally when making operating and strategic decisions,
preparing our annual plan, and evaluating our overall performance.
However, non-GAAP measures are not a substitute for GAAP
disclosures, and EBITDA and Adjusted EBITDA may be prepared
differently by us than by other companies using similarly titled
non-GAAP measures.
The reconciliation of net income (loss) to EBITDA and Adjusted
EBITDA is as follows:
Three Months Ended June
30,
Six Months Ended June
30,
(Millions of dollars)
2024
2023
2024
2023
Net income
$
144.8
$
132.8
$
210.8
$
239.1
Income tax expense (benefit)
48.4
42.9
64.3
75.6
Interest expense, net of investment
income
24.0
23.2
47.7
47.3
Depreciation and amortization
59.3
57.8
118.0
114.2
EBITDA
$
276.5
$
256.7
$
440.8
$
476.2
Accretion of asset retirement
obligations
0.8
0.7
1.6
1.5
(Gain) loss on sale of assets
1.4
(0.1
)
1.0
0.1
Other nonoperating (income) expense
(0.1
)
(0.2
)
(0.5
)
(0.5
)
Adjusted EBITDA
$
278.6
$
257.1
$
442.9
$
477.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731046117/en/
Investor Contact: Christian Pikul Vice President,
Investor Relations and Financial Planning and Analysis
christian.pikul@murphyusa.com
Murphy USA (NYSE:MUSA)
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