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BRENTWOOD, Tenn. — Delek US Holdings Inc. saw an improved performance from its retail segment despite a companywide net loss during the second quarter of 2016. Lower operating and overhead expenses had a positive effect, company officials reported during an Aug. 4 earnings call.
The company reported an overall net loss of $7 million during the quarter that ended June 30, compared to net income of $48.3 million during the same quarter one year ago.
Delek US operates convenience stores under the MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart brand names.
"Efforts are underway to unlock the value of our retail segment, and we remain focused on creating long-term value for our shareholders as we continue to explore strategic opportunities," stated Uzi Yemin, chairman, president and CEO.
Higher fuel margins and lower operating expenses were the primary reasons for the improved year-over-year performance of Delek's retail segment. However, it was partially offset by lower fuel gallons sold during Q2 2016, as the company's fuel pricing programs focus on margins over gallons. This continues the focus the company first discussed in November 2015, as CSNews Online previously reported.
Other highlights from the retail segment's second quarter included:
- Same-store merchandise sales rose 1.7 percent, compared to 3.6 percent one year ago.
- Same-store fuel gallons sold declined 2.4 percent, compared to a 2.6-percent increase a year ago.
- Retail fuel margins rose to 17 cents per gallon vs. 15.3 cents per gallon year over year.
The company also reported that following its May 2015 acquisition of 48 percent of Alon USA's outstanding stock, the loss from equity investment in Alon USA of $10.4 million and the associated interest costs of $3.8 million related to the financing of this investment lowered Delek's results by approximately 15 cents per basic share after tax during the quarter.
Delek US ended Q2 2016 with 348 retail stores, down from the 360 locations it operated at the end of Q2 2015.