Boston, MA 05/12/2014 (wallstreetpr) – Murphy USA Inc (NYSE:MUSA) maintained positive growth despite high price volatility during its first quarter results ended March 31, 2014.
Operating results
Revenues decreased by 4.4% to $4.2 billion compared to $4.4 billion in 1Q2013 due to declining price for retail fuel to $0.21 per gallon; partly offset by increased retail volumes (3.4% YoY). So, volatility in the price decreased the fuel margin to 6.8 cents per gallon. On the other end, merchandise revenues also decreased by $12.8 million to $502.7 million, but improved its margin to 14% due to increasing sales of non-tobacco products.
Lower fuel margin and higher operating expenses as a result of store growth reduced Murphy USA Inc (NYSE:MUSA)’s adjusted EBITDA to $43.2 million (1Q2013: $53.1 million). Lower operating income and increased interest expenses further compressed net income to $9.6 million ($0.21 per diluted share) versus $22.0 million ($0.47 per diluted share) in 1Q2013.
Financial effectiveness
Operating cash flow for the period was $113 million, higher than 1Q2013 ($91 million), due to the cash generated from drawdown of working capital. In addition, lower cash of $23.7 million (1Q2013: $67.5 million) used in capital spending increased the free cash flow to $89.1 million (1Q2013: $24 million) during 1Q2014.
The ending cash balance as of March 31, 2014 was $369.4. Murphy has a conservative balance sheet with total assets of $1.9 billion, shareholder’s equity of $668.2 million and total debt of $546.8 million (long term debt- $530.3 million). So, debt/adjusted EBITDA (LTM) ratio was 1.65x and net debt/adjusted EBITDA (LTM) ratio was 0.53x as of March 31, 2014.
Outlook
Murphy USA Inc (NYSE:MUSA) intends to grow organically while diversifying its merchandise products mix. The Company continues to focus in long term investment to support expansion that will help to generate future cash flow and increase value for its shareholders.
