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FRANKLIN, Tenn. -- Delek US Holdings, parent company to convenience chain MAPCO Express, recorded a net income of $26.3 million for the third quarter of 2006, down from the $32.5 million for the same period on 2005.
Net sales for the third quarter totaled $920.9 million, an increase from the $698.7 million for the third quarter of 2005. The increase was driven by sales in the company's marketing segment and refinery as well as additional stores that were acquired from BP and Fast Petroleum in the last year, the company stated.
"We were especially pleased by the strong operational execution in our business during the third quarter and the first nine months of 2006. The third quarter was a quarter of tremendous growth for the company with the completion of two major acquisitions, the completion of two projects at our Tyler refinery, and the start of a new marketing and supply business segment," said president and chief executive Uzi Yemen.
The retail segment yielded the company a record contribution margin for the third quarter of 2006 with $23.1 million. Net sales for its retail segment topped $401.8 million, an increase of 33 percent compared to the third quarter of 2005.
Merchandise sales increased to $90.8 million from $78.3 million recorded in the third quarter of 2005, a 16 percent increase. This jump was attributed to the $11.2 million in sales that was added when the company acquired stores from BP and Fast Petroleum.
Same store merchandise sales increased 1.7 percent for the quarter, and Delek continues to focus on its fountain and foodservice offerings, which increased 12.9 percent in same store sales for the quarter. Margins also increased to 30.3 percent for the third quarter of 2006.
During the third quarter, Delek completed an acquisition of 43 convenience stores from Fast Petroleum, which increased the company's store count to 392. The acquisition provided the company with additional store density in its core markets of middle Tennessee and northern Alabama, the company stated.
Total fuel sales for the third quarter increased 40.3 percent to $290 million, primarily due to the 9.3 percent increase in average price per gallon, and a 28.3 percent increase on gallons sold, totaling 107 million gallons. The increase in gallons sold is due to the increased number of stores in operation, along with a 5.5 percent growth in same-store gallons sold, the company stated.