Murphy USA Inc. (NYSE: MUSA), a leading marketer of retail motor
fuel products and convenience merchandise, today announced
financial results for the three months and twelve months ended
December 31, 2023.
Key Highlights:
- Net income was $150.0 million, or $7.00 per diluted share, in
Q4 2023 compared to net income of $117.7 million, or $5.21 per
diluted share, in Q4 2022. For the full year 2023, net income was
$556.8 million, or $25.49 per diluted share, compared to 2022 net
income of $672.9 million, or $28.10 per diluted share.
- Total fuel contribution for Q4 2023 was 32.5 cpg, compared to
30.6 cpg in Q4 2022. For the year 2023, total fuel contribution was
31.4 cpg, compared to 34.3 cpg in 2022.
- Total retail gallons were 1.2 billion in both Q4 2023 and Q4
2022, while volumes on a same store sales ("SSS") basis declined
2.0% in Q4 2023 compared to Q4 2022. Total retail gallons were 4.8
billion gallons for both full year 2023 and 2022, and volumes on a
SSS basis for the full year 2023 decreased 1.8% compared to the
prior-year period.
- Merchandise contribution dollars for Q4 2023 increased 4.6% to
$197.7 million on average unit margins of 19.4%, compared to Q4
2022 contribution dollars of $189.0 million on unit margins of
19.1%. For the full year 2023, merchandise contribution dollars
increased 4.7% to $803.4 million and average unit margins were
19.7% in both 2023 and 2022.
- During Q4 2023, the Company repurchased approximately 442.2
thousand common shares for $162.0 million at an average price of
$366.42 per share. For the year 2023, the Company repurchased
slightly more than 1.0 million shares for a total of $336.2 million
at an average of $327.55 per share.
“2023 financial results and operational performance are a
testament to the strong foundations we have built at Murphy USA
over the last decade, successfully executing against our strategy,
and widening our advantage in the marketplace” said President and
CEO Andrew Clyde. “Structural resilience in fuel margins coupled
with high volumes generated over $1.5B in fuel contribution in
2023. This performance in a less volatile environment increases our
confidence in the longevity of elevated fuel margins that
complements and helps strengthen our everyday low-price model,
helping us to deliver more value to our customers. Our strategic
focus remains firmly rooted in new store growth and continuous
improvement efforts to generate higher returns from our network of
existing and new stores, meaning we are investing in people,
technology, and innovation to drive in-store performance. We
executed a balanced capital program in 2023, investing in new store
growth and repurchasing over 1 million shares, while maintaining a
strong and agile balance sheet. We are bringing a lot of momentum
with us into 2024, leveraging the highest fourth quarter net income
and Adjusted EBITDA in company history, and providing us with
further opportunities to drive shareholder value creation for
long-term investors.”
Consolidated Results
Three Months Ended
December 31,
Twelve Months Ended
December 31,
Key Operating Metrics
2023
2022
2023
2022
Net income (loss) ($ Millions)
$
150.0
$
117.7
$
556.8
$
672.9
Earnings per share (diluted)
$
7.00
$
5.21
$
25.49
$
28.10
Adjusted EBITDA ($ Millions)
$
275.2
$
230.3
$
1,058.5
$
1,190.9
Net income and Adjusted EBITDA for Q4 2023 were higher versus
the prior-year quarter, due primarily to higher total fuel
contribution, higher overall merchandise contribution, and lower
general and administrative expenses, which were partially offset by
increases in store operating expenses. Net income and Adjusted
EBITDA for the year 2023 were lower than the prior-year period, due
primarily to lower total fuel contribution, increases in store
operating expenses and general and administrative expenses, which
were partially offset by higher overall merchandise contribution
and lower payment fees.
Fuel
Three Months Ended
December 31,
Twelve Months Ended
December 31,
Key Operating Metrics
2023
2022
2023
2022
Total retail fuel contribution ($
Millions)
$
376.0
$
341.2
$
1,324.0
$
1,405.0
Total PS&W contribution ($
Millions)
(30.4
)
(34.1
)
(144.9
)
(80.8
)
RINs (included in Other operating revenues
on Consolidated Income Statement) ($ Millions)
47.4
62.2
328.6
305.8
Total fuel contribution ($ Millions)
$
393.0
$
369.3
$
1,507.7
$
1,630.0
Retail fuel volume - chain (Million
gal)
1,208.4
1,206.3
4,803.7
4,751.5
Retail fuel volume - per store (K gal
APSM)1
242.8
246.2
242.0
244.6
Retail fuel volume - per store (K gal
SSS)2
237.9
241.6
237.8
240.9
Total fuel contribution (cpg)
32.5
30.6
31.4
34.3
Retail fuel margin (cpg)
31.1
28.3
27.6
29.6
PS&W including RINs contribution
(cpg)
1.4
2.3
3.8
4.7
1Average Per Store Month ("APSM") metric
includes all stores open through the date of calculation
22022 amounts not revised for 2023
raze-and-rebuild activity
Total fuel contribution dollars of $393.0 million increased
$23.7 million, or 6.4%, in Q4 2023 compared to Q4 2022 due to
higher margins and increased retail volumes sold during the
quarter. Retail fuel contribution dollars increased $34.8 million,
or 10.2%, to $376.0 million compared to Q4 2022 due to higher
retail fuel margins and volumes. The increase was driven by 31.1
cpg retail fuel margins in Q4 2023, a 9.9% increase when compared
to Q4 2022, supported primarily by a declining commodity price
environment. Retail volumes were 0.2% higher compared to the
prior-year quarter. PS&W margins declined $11.1 million versus
Q4 2022, primarily due to lower unbranded margins.
For the full year 2023, total fuel contribution dollars
decreased $122.3 million, or 7.5%, due to lower retail fuel and
PS&W margins, partially offset by higher retail volumes. Retail
fuel contribution dollars decreased $81.0 million, or 5.8%, for the
year 2023, due to lower retail fuel margins partially offset by
higher volumes sold. For the full year 2023, retail fuel margins
were 27.6 cpg, a 6.8% decrease versus the prior-year period, and
overall retail volumes were 1.1% higher for the year 2023 compared
to the prior-year period. PS&W margins decreased by $41.3
million for the full year, primarily due to timing and
price-related impacts combined with lower unbranded margins.
Merchandise
Three Months Ended
December 31,
Twelve Months Ended
December 31,
Key Operating Metrics
2023
2022
2023
2022
Total merchandise contribution ($
Millions)
$
197.7
$
189.0
$
803.4
$
767.1
Total merchandise sales ($ Millions)
$
1,018.5
$
989.4
$
4,089.3
$
3,903.2
Total merchandise sales ($K SSS)1,2
$
198.8
$
195.1
$
199.8
$
193.0
Merchandise unit margin (%)
19.4
%
19.1
%
19.7
%
19.7
%
Tobacco contribution ($K SSS)1,2
$
18.8
$
17.7
$
18.4
$
17.7
Non-tobacco contribution ($K SSS)1,2
$
20.4
$
20.1
$
21.3
$
20.2
Total merchandise contribution ($K
SSS)1,2
$
39.2
$
37.8
$
39.7
$
37.9
12022 amounts not revised for 2023
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 $8.7 million, or 4.6%,
to $197.7 million in Q4 2023 compared to the prior-year quarter and
increased $36.3 million to $803.4 million for the full year 2023,
due primarily to higher merchandise sales. Total tobacco
contribution dollars in Q4 2023 increased 7.5% and non-tobacco
contribution dollars increased 3.2% compared to Q4 2022. For the
full year 2023, tobacco contribution dollars increased 4.6% and
non-tobacco contribution dollars increased 5.7% compared to prior
year.
Other Areas
Three Months Ended
December 31,
Twelve Months Ended
December 31,
Key Operating Metrics
2023
2022
2023
2022
Total store and other operating
expenses
($ Millions)
$
254.2
$
247.1
$
1,014.8
$
976.5
Store OPEX excluding payment fees and rent
($K APSM)
$
33.5
$
32.1
$
33.2
$
31.7
Total SG&A cost ($ Millions)
$
62.1
$
81.7
$
240.5
$
232.5
Total store and other operating expenses were $7.1 million
higher in Q4 2023 versus Q4 2022 and were $38.3 million higher for
the year 2023 versus 2022, mainly due to employee related expenses,
store maintenance costs, and inventory shrink costs, in each case
partially offset by lower payment fees. Store OPEX excluding
payment fees and rent on an APSM basis were 4.4% higher versus Q4
2022 and 4.7% higher for the year 2023, primarily attributable to
increased employee related expenses, maintenance, and inventory
shrink costs.
Total SG&A costs for Q4 2023 were $19.6 million lower than
Q4 2022, primarily due to a charitable pledge of $25.0 million in
Q4 2022, offset in part by higher employee and incentive costs and
professional and technology fees in support of business improvement
initiatives incurred in Q4 2023. For the year 2023, SG&A costs
were $8.0 million higher compared to the prior year, due to higher
employee and incentive costs and professional and technology fees
in support of business improvement initiatives, partially offset by
lower charitable donations in 2023.
Store Openings
The tables below reflect changes in our store portfolio in Q4
2023:
Net Change in Q4 2023
Murphy USA /
Express
QuickChek
Total
New-to-industry ("NTI")
9
1
10
Closed
—
(1
)
(1
)
Net change
9
—
9
Raze-and-rebuilds reopened in Q4*
17
—
17
Under Construction at End of Q4
NTI
5
1
6
Raze-and-rebuilds*
2
—
2
Total under construction at end of Q4
7
1
8
Net Change YTD in 2023
NTI
22
6
28
Closed
—
(7
)
(7
)
Net change
22
(1
)
21
Raze-and-rebuilds reopened YTD*
31
—
31
Store count at December 31, 2023*
1,577
156
1,733
*Store counts include raze-and-rebuild
stores
Financial Resources
As of December 31,
Key Financial Metrics
2023
2022
Cash and cash equivalents ($ Millions)
$
117.8
$
60.5
Marketable securities, current ($
Millions)
$
7.1
$
17.9
Marketable securities, non-current ($
Millions)
$
4.4
$
4.4
Long-term debt, including finance lease
obligations ($ Millions)
$
1,784.7
$
1,791.9
Cash balances as of December 31, 2023 totaled $117.8 million,
and the Company also had total marketable securities of $11.5
million. Long-term debt consisted of approximately $298.4 million
in carrying value of 5.625% senior notes due in 2027, $495.7
million in carrying value of 4.75% senior notes due in 2029, $494.6
million in carrying value of 3.75% senior notes due in 2031, and
$380.3 million of term debt, combined with approximately $115.7
million in long-term finance leases. The $350 million revolving
cash flow facility was undrawn as of December 31, 2023.
Three Months Ended
December 31,
Twelve Months Ended
December 31,
Key Financial Metric
2023
2022
2023
2022
Average shares outstanding (diluted) (in
thousands)
21,425
22,603
21,843
23,950
At December 31, 2023, the Company had common shares outstanding
of 20,837,328. Common shares repurchased during the quarter were
approximately 442.2 thousand shares for $162.0 million, which were
purchased under the 2021 share repurchase plan (now completed) and
the 2023 share repurchase plan. Common shares purchased during the
twelve months ended December 31, 2023, were slightly more than 1.0
million shares for a total of $336.2 million. As of December 31,
2023, approximately $1.4 billion remained available under the $1.5
billion 2023 plan.
The effective income tax rate for Q4 2023 was 23.6% compared to
22.3% in Q4 2022. For the year 2023, the effective income tax rate
was 24.2% compared to 23.9% in 2022.
The Company paid a quarterly cash dividend on December 1, 2023
of $0.41 per share, or $1.64 per share on an annualized basis, a
5.1% increase from the previous quarter for a total cash payment of
$8.7 million. Total cash dividends paid in 2023 were $33.4 million,
or $1.55 per share, compared to $29.9 million in 2022, an increase
of 11.7%.
2023 Guidance Range, 2023 Actual Results, and 2024 Guidance
Range
2023 Updated Guidance
Range
2023 Actual
Results
2024 Guidance
Range
Organic Growth
New Stores
27 - 30
28
30 to 35
Raze-and-Rebuilds
33
31
35 to 40
Fuel Contribution
Retail fuel volume per store (K gallons
APSM)
240 to 245
242
240 to 245
Store Profitability
Merchandise contribution ($ Millions)
$795 to $815
$803
$860 to $880
Retail store OPEX excluding credit card
fees and rent expense ($K, APSM)
$32.5 to $34.0
$33.2
$35.0 to $35.5
Corporate Costs
SG&A ($ Millions per year)
$235 to $245
$241
$255 to $265
Effective Tax Rate
24% to 26%
24.2%
24% to 26%
Capital Allocation
Capital expenditures ($ Millions)
$325 to $375
$344
$400 to $450
Management's annual guidance for 2024 reflects the Company's
economic and market environment assessment, business improvement
initiatives and known potential headwinds. Key 2024 guidance ranges
include the following assumptions and are subject to the
uncertainties noted below:
Organic Growth:
- New store additions and investments in raze-and-rebuild sites
reflect our expectation of being able to sustain a higher level of
growth into 2024 and beyond, utilizing our disciplined capital
approach and prioritizing the highest return projects across
competing opportunity sets
Fuel Contribution:
- The company's low-price offering continues to resonate with our
customers, retaining prior year market share gains in 2023 which we
expect to persist in 2024, resulting in flat to slightly higher per
store volumes
Store Profitability:
- Material growth in merchandise contribution is based on
expected impact from new stores, raze and rebuilds, and ongoing
promotional and center-of-store focused initiatives, particularly
in the food and beverage categories
- Growth in store operating expenses per site, before credit card
fees and rent, will likely be modestly higher in 2024 as we build
larger new stores, raze and rebuild existing stores, and invest in
people and technology, which will in turn drive a higher rate of
growth in merchandise contribution
Corporate Costs:
- SG&A costs reflect continued investments in productivity
initiatives that will improve the company's ability to better serve
customers through a wider variety of digital assets and creating a
more engaging customer experience over the long-term
- The effective tax rate in 2024 is expected to be in a range of
24% to 26% and is consistent with historical performance
Capital Allocation:
- Capital expenditures primarily reflect a higher expected level
of new store growth, raze-and-rebuild activity, store remodels, as
well as corporate infrastructure projects and continued investment
in digital technologies
The Company does not provide a projected range of all-in fuel
margin, Adjusted EBITDA, or Net Income. However, for modeling
purposes only, using all-in fuel margins of between 30.0 cpg and
34.0 cpg, combined with the mid-point of the official guided ranges
above, management would expect the business to generate net income
between $496 million and $631 million, respectively, which would
translate to expected Adjusted EBITDA between $1 billion and $1.2
billion. A reconciliation of the Adjusted EBITDA to Net Income is
provided as the final page of this release.
* * * * *
Earnings Call Information
The Company will host a conference call on February 8, 2024 at
10:00 a.m. Central Time to discuss fourth quarter 2023 results. The
conference call number is 1 (888) 330-2384 and the conference
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 contain 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 outlook for 2024, M&A
activity, anticipated store openings, 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:
The Company's 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, disruptions in our supply chain
and our ability to control costs; geopolitical events 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, 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; changes to the
Company's capital allocation, 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
December 31,
Twelve Months Ended
December 31,
(Millions of dollars, except share and per
share amounts)
2023
2022
2023
2022
Operating Revenues
Petroleum product sales1
$
4,000.8
$
4,312.8
$
17,104.4
$
19,230.1
Merchandise sales
1,018.5
989.4
4,089.3
3,903.2
Other operating revenues
49.6
64.1
335.7
312.8
Total operating revenues
5,068.9
5,366.3
21,529.4
23,446.1
Operating Expenses
Petroleum product cost of goods sold1
3,656.6
4,006.8
15,929.7
17,910.1
Merchandise cost of goods sold
820.8
800.4
3,285.9
3,136.1
Store and other operating expenses
254.2
247.1
1,014.8
976.5
Depreciation and amortization
57.0
55.9
228.7
220.4
Selling, general and administrative
62.1
81.7
240.5
232.5
Accretion of asset retirement
obligations
0.8
0.7
3.0
2.7
Acquisition and integration related
costs
—
0.1
—
1.5
Total operating expenses
4,851.5
5,192.7
20,702.6
22,479.8
Gain (loss) on sale of assets
(0.2
)
(0.1
)
(0.8
)
2.1
Income (loss) from operations
217.2
173.5
826.0
968.4
Other income (expense)
Investment income
2.2
1.2
6.9
3.0
Interest expense
(24.0
)
(23.7
)
(98.5
)
(85.3
)
Other nonoperating income (expense)
0.9
0.4
—
(2.3
)
Total other income (expense)
(20.9
)
(22.1
)
(91.6
)
(84.6
)
Income before income taxes
196.3
151.4
734.4
883.8
Income tax expense (benefit)
46.3
33.7
177.6
210.9
Net Income
$
150.0
$
117.7
$
556.8
$
672.9
Basic and Diluted Earnings Per Common
Share
Basic
$
7.12
$
5.31
$
25.91
$
28.63
Diluted
$
7.00
$
5.21
$
25.49
$
28.10
Weighted-average Common shares outstanding
(in thousands):
Basic
21,072
22,148
21,493
23,506
Diluted
21,425
22,603
21,843
23,950
Supplemental information:
1Includes excise taxes of:
$
570.1
$
541.8
$
2,291.2
$
2,180.2
Murphy USA Inc.
Segment Operating
Results
(Unaudited)
(Millions of dollars, except revenue per
same store sales (in thousands) and store counts)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
Marketing Segment
2023
2022
2023
2022
Operating Revenues
Petroleum product sales
$
4,000.8
$
4,312.8
$
17,104.4
$
19,230.1
Merchandise sales
1,018.5
989.4
4,089.3
3,903.2
Other operating revenues
49.3
63.8
335.2
312.1
Total operating revenues
5,068.6
5,366.0
21,528.9
23,445.4
Operating expenses
Petroleum products cost of goods sold
3,656.6
4,006.8
15,929.7
17,910.1
Merchandise cost of goods sold
820.8
800.4
3,285.9
3,136.1
Store and other operating expenses
254.1
247.1
1,014.6
976.5
Depreciation and amortization
53.0
51.9
211.9
204.8
Selling, general and administrative
62.1
81.7
240.5
232.5
Accretion of asset retirement
obligations
0.8
0.7
3.0
2.7
Total operating expenses
4,847.4
5,188.6
20,685.6
22,462.7
Gain (loss) on sale of assets
(0.2
)
(0.1
)
(0.7
)
(0.7
)
Income (loss) from operations
221.0
177.3
842.6
982.0
Other income (expense)
Interest expense
(2.2
)
(2.3
)
(8.9
)
(9.0
)
Other nonoperating income (expense)
0.1
—
0.2
—
Total other income (expense)
(2.1
)
(2.3
)
(8.7
)
(9.0
)
Income (loss) before income taxes
218.9
175.0
833.9
973.0
Income tax expense (benefit)
52.8
39.1
203.0
232.1
Net income (loss) from operations
$
166.1
$
135.9
$
630.9
$
740.9
Total tobacco sales revenue same store
sales1,2
$
128.8
$
124.7
$
127.2
$
123.3
Total non-tobacco sales revenue same store
sales1,2
70.0
70.4
72.6
69.7
Total merchandise sales revenue same store
sales1,2
$
198.8
$
195.1
$
199.8
$
193.0
12022 amounts not revised for 2023
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
1,733
1,712
1,733
1,712
Total store months during the period
5,134
5,079
20,535
20,172
Same store sales information compared to APSM metrics
Variance from prior year
period
Three months ended
Twelve months ended
December 31, 2023
December 31, 2023
SSS1
APSM2
SSS1
APSM2
Retail fuel volume per month
(2.0
)%
(1.4
)%
(1.8
%)
(1.0
%)
Merchandise sales
1.4
%
1.8
%
2.7
%
2.9
%
Tobacco sales
3.2
%
3.0
%
3.5
%
2.9
%
Non tobacco sales
(1.7
)%
0.1
%
1.4
%
3.1
%
Merchandise margin
3.2
%
3.4
%
3.0
%
2.9
%
Tobacco margin
7.1
%
6.3
%
4.3
%
2.7
%
Non tobacco margin
(0.2
)%
2.1
%
1.9
%
3.8
%
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, 2022 for the stores
being compared in the 2023 versus 2022 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 Q4 2023 covers the period
September 30, 2023 to December 29, 2023 and for the full year 2023
covers the period December 31, 2022 to December 29, 2023. The
QuickChek results for Q4 2022 covers the period October 1, 2022 to
December 30, 2022 and for the full year 2022 covers the period
January 1, 2022 to December 30, 2022. 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)
December 31,
2023
December 31, 2022
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
117.8
$
60.5
Marketable securities, current
7.1
17.9
Accounts receivable—trade, less allowance
for doubtful accounts of $1.3 and $0.3 at 2023 and 2022,
respectively
336.7
281.7
Inventories, at lower of cost or
market
341.2
319.1
Prepaid expenses and other current
assets
23.7
47.6
Total current assets
826.5
726.8
Marketable securities, non-current
4.4
4.4
Property, plant and equipment, at cost
less accumulated depreciation and amortization of $1,739.2 and
$1,553.1 at 2023 and 2022, respectively
2,571.8
2,459.3
Operating lease right of use assets,
net
452.1
449.6
Intangible assets, net of amortization
139.8
140.4
Goodwill
328.0
328.0
Other assets
17.5
14.7
Total assets
$
4,340.1
$
4,123.2
Liabilities and Stockholders'
Equity
Current liabilities
Current maturities of long-term debt
$
15.0
$
15.0
Trade accounts payable and accrued
liabilities
834.7
839.2
Income taxes payable
23.1
—
Total current liabilities
872.8
854.2
Long-term debt, including capitalized
lease obligations
1,784.7
1,791.9
Deferred income taxes
329.5
327.4
Asset retirement obligations
46.1
43.3
Non-current operating lease
liabilities
450.3
444.2
Deferred credits and other liabilities
27.8
21.5
Total liabilities
3,511.2
3,482.5
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 2023 and 2022,
respectively)
0.5
0.5
Treasury stock (25,929,836 and 25,017,324
shares held at
2023 and 2022, respectively)
(2,957.8
)
(2,633.3
)
Additional paid in capital (APIC)
508.1
518.9
Retained earnings
3,278.1
2,755.1
Accumulated other comprehensive income
(loss) (AOCI)
—
(0.5
)
Total stockholders' equity
828.9
640.7
Total liabilities and stockholders'
equity
$
4,340.1
$
4,123.2
Murphy USA Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
(Millions of dollars)
2023
2022
2023
2022
Operating Activities
Net income
$
150.0
$
117.7
$
556.8
$
672.9
Adjustments to reconcile net income (loss)
to net cash provided by operating activities
Depreciation and amortization
57.0
55.9
228.7
220.4
Deferred and noncurrent income tax charges
(benefits)
1.9
16.5
2.0
31.5
Accretion of asset retirement
obligations
0.8
0.7
3.0
2.7
Amortization of discount on marketable
securities
(0.4
)
(0.1
)
(0.4
)
(0.1
)
(Gains) losses from sale of assets
0.2
0.1
0.8
(2.1
)
Net (increase) decrease in noncash
operating working capital
55.1
26.0
(42.1
)
44.8
Other operating activities - net
8.5
6.4
35.2
24.6
Net cash provided (required) by operating
activities
273.1
223.2
784.0
994.7
Investing Activities
Property additions
(111.0
)
(82.2
)
(335.6
)
(305.3
)
Proceeds from sale of assets
0.1
0.3
2.4
8.8
Investment in marketable securities
(1.5
)
(22.2
)
(12.8
)
(22.2
)
Redemptions of marketable securities
6.0
—
24.0
—
Other investing activities - net
(0.2
)
—
(1.6
)
(0.6
)
Net cash provided (required) by investing
activities
(106.6
)
(104.1
)
(323.6
)
(319.3
)
Financing Activities
Purchase of treasury stock
(160.5
)
(239.5
)
(333.2
)
(806.4
)
Dividends paid
(8.7
)
(7.8
)
(33.4
)
(29.9
)
Borrowings of debt
—
5.0
8.0
5.0
Repayments of debt
(3.8
)
(8.8
)
(23.4
)
(20.2
)
Amounts related to share-based
compensation
(0.5
)
(0.2
)
(21.1
)
(19.8
)
Net cash provided (required) by financing
activities
(173.5
)
(251.3
)
(403.1
)
(871.3
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(7.0
)
(132.2
)
57.3
(195.9
)
Cash, cash equivalents and restricted cash
at beginning of period
124.8
192.7
60.5
256.4
Cash, cash equivalents and restricted cash
at end of period
$
117.8
$
60.5
$
117.8
$
60.5
Supplemental Disclosure Regarding Non-GAAP Financial
Information
The following table reconciles EBITDA and Adjusted EBITDA to Net
Income for the three months and twelve months ended months ended
December 31, 2023 and 2022. 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
December 31,
Twelve Months Ended
December 31,
(Millions of dollars)
2023
2022
2023
2022
Net income
$
150.0
$
117.7
$
556.8
$
672.9
Income tax expense (benefit)
46.3
33.7
177.6
210.9
Interest expense, net of investment
income
21.8
22.5
91.6
82.3
Depreciation and amortization
57.0
55.9
228.7
220.4
EBITDA
$
275.1
$
229.8
$
1,054.7
$
1,186.5
Accretion of asset retirement
obligations
0.8
0.7
3.0
2.7
(Gain) loss on sale of assets
0.2
0.1
0.8
(2.1
)
Acquisition and integration related
costs
—
0.1
—
1.5
Other nonoperating (income) expense
(0.9
)
(0.4
)
—
2.3
Adjusted EBITDA
$
275.2
$
230.3
$
1,058.5
$
1,190.9
Required Non-GAAP Reconciliation
An itemized reconciliation of Adjusted EBITDA to Net Income for
the full year 2024, which is provided for modeling purposes only,
is as follows:
Calendar Year 2024
(Millions of dollars)
Low
High
Net Income
$
496
$
631
Income taxes
$
157
$
222
Interest expense, net of interest
income
$
97
$
97
Depreciation and amortization
$
249
$
249
Other operating and nonoperating, net
$
1
$
1
Adjusted EBITDA
$
1,000
$
1,200
The Company does not provide a projected range of all-in fuel
margin, Adjusted EBITDA, or Net Income. However, for modeling
purposes only, using all-in fuel margins of between 30.0 cpg and
34.0 cpg, combined with the mid-point of the official guided ranges
above, management would expect the business to generate net income
between $496 million and $631 million, respectively, which would
translate to expected Adjusted EBITDA of between $1 billion and
$1.2 billion.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240207388318/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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