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BRENTWOOD, Tenn. -- Delek US Holdings Inc., operator of the MAPCO Express convenience store chain, saw a 59 percent increase in net income, topping $67.2 million for the second quarter of 2007, compared to $42.2 million seen in the year-ago quarter.
"We are pleased to report strong results for the second quarter of 2007," Uzi Yemin, president and CEO of Delek US, said in a statement. "Our operational performance coupled with continued success in implementing our acquisition strategy, demonstrates our focus on sustained growth while maintaining our financial strength and flexibility as evidenced by our $275.4 million in cash and short term investments at quarter end."
The company's retail segment contributed $18.4 million for the second quarter, compared to $15.3 million in the second quarter 2006. Net sales increased 33 percent for the quarter, to $486.4 million, primarily due to the addition of approximately 150 stores through acquisitions made during the quarter and a 3.6 percent increase in retail fuel prices, the company stated.
In addition, merchandise sales increased 35.7 percent to $111.8 million, supported by a same store sales increase of 1.3 percent. Retail fuel sales also increased 34.6 percent during the second quarter of 2007, to $352.4 million, compared to $261.8 million for the same quarter of 2006. The increase in fuel sales was attributed to a 30 percent increase in retail gallons sold, which reached nearly 123.8 million gallons, the company stated.
During the quarter, Delek US completed the purchase of all 107 Favorite Markets retail fuel and convenience stores from Calfee Co. of Georgia, which increased its company-operated store count to 502.
In other earnings news, Dallas-based Alon USA Energy Inc. saw the most profitable quarterly results in the company's history with the release of its second quarter 2007 results. Net income for the second quarter of 2007 totaled $95.6 million, compared to $43.1 million for the same period last year, the company stated.
The increase in net income for the quarter ended June 30, were primarily attributed to the increased throughput at the company's Big Spring refinery, the addition of the California refineries and asphalt assets acquired in the third quarter of 2006, along with strong industry refining margins.
"This was a record quarter. We combined record throughput at both our Big Spring and California refineries with record margins. Our record throughput also resulted in record sales," Jeff Morris, Alon's president and CEO, said in a statement. "This performance is primarily due to the exceptional quality and contribution of all the individuals in Alon USA."
Morris also gave an update on the current operations at Alon USA:
"We are continuing our integration of the California refineries and asphalt business and remain very optimistic about the potential these assets have for Alon. During the second quarter, we closed the acquisition of Skinny's, which added 102 retail stores as we continue to increase the physical integration of our Big Spring refinery," he said.