This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Delek US Holdings Reports Record Second Quarter 2012 Net Income

Stocks in this article: DK

On July 12, 2012, our wholly-owned indirect subsidiary, Delek Logistics Partners, LP, filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) relating to its proposed initial public offering of common units representing limited partner interests. Because no such registration statement has become effective, we will not discuss this proposed offering during our conference call to discuss this earnings press release. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. Neither this statement nor anything in this press release shall constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

       

Delek US Holdings, Inc.

 

Condensed Consolidated Balance Sheets (Unaudited)

 
June 30, 2012 December 31, 2011
(In millions, except share

and per share data)

ASSETS
Current assets:
Cash and cash equivalents $ 321.1 $ 225.9
Accounts receivable 269.8 277.1
Inventory 364.2 508.0
Other current assets 22.9   39.6  
Total current assets 978.0   1,050.6  
Property, plant and equipment:
Property, plant and equipment 1,387.5 1,317.3
Less: accumulated depreciation (298.7 ) (263.5 )
Property, plant and equipment, net 1,088.8   1,053.8  
Goodwill 69.7 69.7
Other intangibles, net 15.3 17.5
Other non-current assets 36.2   39.0  
Total assets $ 2,188.0   $ 2,230.6  
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 481.2 $ 521.1
Current portion of long-term debt and capital lease obligations 101.4 68.2
Current portion of notes payable to related party 10.5 6.0
Obligation under Supply and Offtake Agreement 173.4 298.6
Accrued expenses and other current liabilities 125.3   100.8  
Total current liabilities 891.8   994.7  
Non-current liabilities:
Long-term debt and capital lease obligations, net of current portion 276.9 297.9
Notes payable to related party 34.0 60.5
Environmental liabilities, net of current portion 9.3 9.7
Asset retirement obligations 8.1 7.9
Deferred tax liabilities 178.7 168.1
Other non-current liabilities 32.2   38.2  
Total non-current liabilities 539.2   582.3  
Shareholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.01 par value, 110,000,000 shares authorized, 58,381,124 shares and 58,036,427 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively 0.6 0.6
Additional paid-in capital 357.9 356.9
Accumulated other comprehensive income 1.8
Retained earnings 398.5 294.1
Non-controlling interest in subsidiaries   0.2  
Total shareholders’ equity 757.0   653.6  
Total liabilities and shareholders’ equity $ 2,188.0   $ 2,230.6  
       

Delek US Holdings, Inc.

 

Condensed Consolidated Statements of Income (Unaudited)

 
Three Months Ended Six Months Ended
June 30, June 30,
2012     2011 2012     2011
(Revised) (Revised)
(In millions, except share and per share data)
Net sales $ 2,134.2 $ 1,848.7 $ 4,304.6 $ 2,992.2
Operating costs and expenses:
Cost of goods sold 1,881.1 1,621.0 3,836.1 2,635.2
Operating expenses 90.1 83.2 174.5 143.4
General and administrative expenses 24.7 24.8 51.7 43.1
Depreciation and amortization 21.6 19.0 40.6 33.9
Loss on sale of assets     1.4       2.0  
Total operating costs and expenses   2,017.5   1,749.4     4,102.9   2,857.6  
Operating income   116.7   99.3     201.7   134.6  
Interest expense 12.3 15.0 24.7 22.3
Gain on investment in Lion Oil     (9.2 )     (9.2 )
Total non-operating expenses   12.3   5.8     24.7   13.1  
Income before income taxes 104.4 93.5 177.0 121.5
Income tax expense   36.6   29.4     63.0   40.5  
Net income 67.8 64.1 114.0 81.0
Net income attributed to non-controlling interest     2.0       2.0  
Net income attributable to Delek $ 67.8 $ 62.1   $ 114.0 $ 79.0  
Basic earnings per share $ 1.16 $ 1.09   $ 1.96 $ 1.43  
Diluted earnings per share $ 1.15 $ 1.08   $ 1.93 $ 1.42  
Weighted average common shares outstanding:
Basic   58,239,476   56,788,169     58,178,743   55,364,685  
Diluted   59,175,544   57,263,271     58,951,436   55,634,896  
Dividends declared per common share outstanding

$

0.1375

$ 0.0375  

$

0.2650

$ 0.0750  
Adjusted diluted earnings per share $ 1.17 $ 0.92   $ 1.95 $ 1.25  
 
Delek US Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
             
  Six Months Ended June 30,
  2012 2011
Cash Flow Data (Revised)
Cash flows provided by operating activities: $ 190.5 $ (105.0 )
Cash flows used in investing activities: (77.8 ) (103.7 )
Cash flows provided by (used in) financing activities: (17.5 ) 307.8  
Net increase in cash and cash equivalents $ 95.2   $ 99.1  
Delek US Holdings, Inc.
Segment Data
(In millions)
    Three Months Ended June 30, 2012
  Refining Retail Marketing

Corporate, Other and

Eliminations

Consolidated
Net sales (excluding intercompany fees and sales) $ 1,455.3 $ 486.6 $ 193.1 $ (0.8 ) $ 2,134.2
Intercompany fees and sales 36.9 65.7 (102.6 )
Operating costs and expenses:
Cost of goods sold 1,299.5 436.7 249.1 (104.2 ) 1,881.1
Operating expenses 59.5   31.7   2.2   (3.3 ) 90.1
Segment contribution margin $ 133.2   $ 18.2   $ 7.5   $ 4.1   163.0
General and administrative expenses 24.7
Depreciation and amortization 21.6
Operating income $ 116.7
Total assets $ 1,505.1   $ 416.7   $ 175.9   $ 90.3   $ 2,188.0
Capital spending (excluding business combinations) $ 19.3   $ 7.6   $ 0.1   $ 2.7   $ 29.7
 
Three Months Ended June 30, 2011
Refining Retail Marketing

Corporate, Other and

Eliminations

Consolidated
(Revised)
Net sales (excluding intercompany fees and sales) $ 1,161.4 $ 496.9 $ 190.4 $ $ 1,848.7
Intercompany fees and sales 5.1 5.4 (10.5 )
Operating costs and expenses:
Cost of goods sold 994.5 447.7 189.2 (10.4 ) 1,621.0
Operating expenses 49.7   34.6   1.5   (2.6 ) 83.2
Segment contribution margin $ 122.3   $ 14.6   $ 5.1   $ 2.5   144.5
General and administrative expenses 24.8
Depreciation and amortization 19.0
Loss on sale of assets 1.4
Operating income $ 99.3
Total assets $ 1,487.2   $ 406.0   $ 88.5   $ 51.1   $ 2,032.8
Capital spending (excluding business combinations) $ 5.5   $ 8.0   $   $ 0.1   $ 13.6
   
Six Months Ended June 30, 2012
  Refining Retail Marketing

Corporate, Other and

Eliminations

Consolidated
Net sales (excluding intercompany fees and sales) $ 2,993.1 $ 931.8 $ 380.6 $ (0.9 ) $ 4,304.6
Intercompany fees and sales 84.8 113.4 (198.2 )
Operating costs and expenses:
Cost of goods sold 2,714.5 844.2 474.5 (197.1 ) 3,836.1
Operating expenses 114.2   62.1   3.9   (5.7 ) 174.5
Segment contribution margin $ 249.2   $ 25.5   $ 15.6   $ 3.7   294.0
General and administrative expenses 51.7
Depreciation and amortization 40.6
Operating income $ 201.7
Capital spending (excluding business combinations) $ 34.0   $ 11.2   $ 0.4   $ 4.8   $ 50.4
 
Six Months Ended June 30, 2011
Refining Retail Marketing

Corporate, Other and

Eliminations

Consolidated
(Revised)
Net sales (excluding intercompany fees and sales) $ 1,736.6 $ 911.1 $ 344.5 $ $ 2,992.2
Intercompany fees and sales 10.4 10.4 (20.8 )
Operating costs and expenses:
Cost of goods sold 1,491.4 823.1 339.0 (18.3 ) 2,635.2
Operating expenses 79.0   66.9   2.5   (5.0 ) 143.4
Segment contribution margin $ 176.6   $ 21.1   $ 13.4   $ 2.5   213.6
General and administrative expenses 43.1
Depreciation and amortization 33.9
Loss on sale of assets 2.0
Operating income $ 134.6
Capital spending (excluding business combinations) $ 9.0   $ 16.2   $   $ 0.4   $ 25.6
     
Three Months Ended June 30, Six Months Ended June 30,
2012   2011 2012   2011
Tyler Refinery
Days operated in period 91 91 182 181
Total sales volume (average barrels per day) (1) 58,644 60,140 57,742 59,205
Products manufactured (average barrels per day):
Gasoline 30,043 31,957 30,574 31,830
Diesel/Jet 21,752 22,371 20,875 22,138
Petrochemicals, LPG, NGLs 2,293 2,302 2,197 2,050
Other 1,829   2,402   1,966   2,423
Total production 55,917   59,032   55,612   58,441
Throughput (average barrels per day):
Crude oil 54,758 56,015 52,797 54,822
Other feedstocks 1,971   4,019   3,330   4,430
Total throughput 56,729   60,034   56,127   59,252
Per barrel of sales:
Tyler refining margin $ 20.21 $ 20.75 $ 19.85 $ 18.39
Tyler refining margin excluding intercompany marketing service fee $ 20.87 $ 21.26 $ 20.46 $ 18.90
Direct operating expenses $ 5.88 $ 5.60 $ 5.75 $ 5.59
     
Three Months Ended June 30, Six Months Ended June 30,
2012   2011 2012   2011
(Revised) (Revised)
El Dorado Refinery
Days operated in period 91 63 182 63
Total sales volume (average barrels per day) (1) 83,254 67,822 84,132 67,822
Products manufactured (average barrels per day):
Gasoline 31,938 27,832 32,524 27,832
Diesel 26,398 23,448 28,008 23,448
Petrochemicals, LPG, NGLs 1,289 1,265 1,355 1,265
Asphalt 7,900 11,753 9,986 11,753
Other 1,668   2,521   1,694   2,521
Total production 69,193   66,819   73,567   66,819
Throughput (average barrels per day):
Crude oil 63,230 61,363 67,883 61,363
Other feedstocks 7,138   6,387   6,547   6,387
Total throughput 70,368   67,750   74,430   67,750
Per barrel of sales:
El Dorado refining margin $ 11.21 $ 13.71 $ 10.11 $ 13.71
Direct operating expenses $ 3.72 $ 4.46 $ 3.51 $ 4.46
Pricing statistics (average for the period presented):
WTI — Cushing crude oil (per barrel) $ 93.49 $ 102.54 $ 98.19 $ 98.42
Mars crude oil (per barrel) (2) $ 104.30 $ 108.51 $ 109.69 $ 108.51
US Gulf Coast 5-3-2 crack spread (per barrel) $ 25.42 $ 23.14 $ 24.65 $ 20.35
US Gulf Coast Unleaded Gasoline (per gallon) $ 2.80 $ 2.98 $ 2.87 $ 2.79
Ultra low sulfur diesel (per gallon) $ 2.94 $ 3.08 $ 3.05 $ 2.96
Natural gas (per MMBTU) $ 2.29 $ 4.36 $ 2.36 $ 4.27
   

Marketing Segment

Three Months Ended June 30, Six Months Ended June 30,
2012   2011 2012   2011
Days operated in period 91 91 182 181
Products sold (average barrels per day):
Gasoline 7,473 6,647 7,106 6,358
Diesel 9,116 9,234 8,849 8,839
Other 81   65   71   47
Total sales 16,670   15,946   16,026   15,244
   

Retail Segment

Three Months Ended June 30, Six Months Ended June 30,
2012   2011 2012   2011
Number of stores (end of period) 374 390 374 390
Average number of stores 372 397 375 403
Retail fuel sales (thousands of gallons) 103,411 103,028 197,117 199,431
Average retail gallons per average number of stores (in thousands) 278 260 526 495
Retail fuel margin ($ per gallon) $ 0.182 $ 0.186 $ 0.153 $ 0.157
Merchandise sales (in thousands) $ 98,871 $ 97,307 $ 187,757 $ 183,426
Merchandise sales per average number of stores (in thousands) $ 266 $ 245 $ 501 $ 455
Merchandise margin % 29.7 % 30.2 % 29.6 % 30.5 %
Credit expense (% of gross margin) 10.7 % 11.5 % 11.5 % 11.7 %
Operating expense/merchandise sales plus total gallons 15.1 % 16.7 % 15.5 % 16.9 %
Change in same store fuel gallons sold 2.2 % (1.3 )% 1.6 % (1.8 )%
Change in same store merchandise sales 4.3 % 0.6 % 5.9 % 2.3 %

(1) Sales volume includes 3,184 bpd and 3,523 bpd sold to the marketing and retail segments during the three and six months ended June 30, 2012 and 902 bpd and 1,320 bpd during the three and six months ended June 30, 2011, respectively.

7 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs