As Murphy USA of El Dorado celebrated its fifth birthday as a standalone company, the retail fuel and convenience store giant reported a net profit of $45 million for the third quarter, down from last year’s third quarter but up when compared to the first nine months of 2017 taken together.
The $45 million in net income, or $1.38 per diluted share, compared with a $68 million profit in the same quarter a year ago, largely because of lower fuel margins, the company said.
The figures were reported to the Securities & Exchange Commission after the market close Wednesday, when MUSA was at $80.63. The shares’ 52-week high was $89.69, and the low was $61.05.
Along with net income, adjusted earnings before interest, tax, depreciation and amortization and diluted earnings per share were down, but negative forces were partially offset by a higher merchandize contribution to the bottom line and a reduced effective income tax rate.
“On the fifth anniversary of Murphy USA becoming a standalone public company [after being spun off from Murphy Oil Corp. of El Dorado], I couldn’t be more impressed with how the business and our team have evolved over time,” President and CEO Andrew Clyde said in a statement. He cited the company’s “superior financial results through investments in organic growth, coupled with cost discipline, innovation and a commitment to operational excellence.”
Total retail gallons of fuel sold rose 3.5 percent to 1.1 billion gallons during the quarter, and same store sales were up one percent. Merchandise dollars grew 7 percent to $104.5 million on average unit margins of 16.8 percent, which the company said was a quarterly record.
“Third quarter 2018 results were supported by both higher gallons and continued strong performance from our merchandising business versus prior year activity,” Clyde continued. “While continuing to strengthen our competitive positioning, we remain committed to long-term shareholders through our disciplined, return-driven capital allocation strategy.”
The company opened seven new stores and reopened three raze-and-rebuild sites in the quarter, and construction is underway at 27 locations, including 15 raze-and-rebuild projects. By year’s end, Murphy USA expects to be at or near 1,474 locations.
The new store additions and higher payment fees linked to higher retail fuel prices and merchandise sales helped push operating expenses up 7.1 percent for the quarter, according to a news release.
The company said its effective income tax rate was 21.1 percent in the quarter, down 16.4 percent from last year’s rate, after the federal corporate tax cut early this year.
Murphy USA will host a conference call at 10 a.m. Thursday to discuss the quarterly results. The call number is (844) 613-1037; the conference number is 1728329.
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